Current state of fintech
The fintech landscape is growing fast and changing how we handle money. In 2023, the global fintech market was valued at $294 billion, with projections indicating an increase to $340 billion in 2024. This upward trajectory is expected to continue, with the market reaching an impressive $1,152 billion by 2032 and demonstrating a compound annual growth rate (CAGR) of 16.5% between 2024 and 2032.
More people are using digital payments too. In 2022, 89% of people in the U.S. used some form of digital payment (up from 51% in 2021), and 62% used two or more types. Awareness of fintech services is high, with only 4% of consumers unaware of money transfers and payments.
Despite the overall growth trend, recent investment figures suggest a slight cooling in the fintech sector. In the first half of 2024, total capital invested in fintechs worldwide amounted to $15.9 billion, down from $19.5 billion in the latter half of 2023. This paints a picture of a dynamic and rapidly evolving industry that, while facing investment headwinds, continues to transform financial services and consumer behavior.
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