Last quarter we determined that fintech funding is maturing. This quarter we are taking a closer look on our fintech research platform to examine funding by category. From this analysis, we conclude that payments-related categories are outperforming all other categories by a wide margin.
This conclusion comes from two important takeaways:
We’ll explain these takeaways with some graphics and discussions below.
To start off, let’s look at fintech category funding in Q2.
The above graphic shows that Consumer Payments leads the sector in Q2 funding with $15B, with Payments Backend right behind at $14.7B. It’s noteworthy that these payments categories are roughly 13 times larger than the next category, Business Lending.
So we’ve witnessed how different fintech categories stack up in their Q2 funding. But how do these categories’ funding growth rates compare with one another? Let’s investigate that in the next section.
The graph below shows the all-time funding in fintech categories with the quarterly funding and growth rates highlighted.
The line graph in the above graphic indicates that Consumer Payments and Payments Backend had the highest growth rates and more than doubled their funding in Q2.
Although the bar graph demonstrates that Consumer Lending leads in all-time funding with $29B, the two payments-related categories, Consumer Payments and Payments Backend, aren’t far behind with $28B and $27B, respectively.
In summary, we have analyzed the fintech funding amounts in different fintech categories. We’ve discovered that Consumer Payments leads in Q2 funding and had the highest growth percentage, with Payments Backend in a close second place for both metrics. It’ll be interesting to see if any other fintech categories will see similarly large growth in the rest of 2018.