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:
- Consumer Payments leads the sector in Q2 funding
- Consumer Payments also has the highest funding growth percentage
We’ll explain these takeaways with some graphics and discussions below.
Consumer Payments Leads Fintech in Q2 Funding
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....
The above sector map organizes the Financial Technology sector into 16 categories and shows a sampling of companies in each category.
Banking Infrastructure: Solutions that improve the operations of financial institutions. Examples include API integration with banks, white-label mobile solutions, and big-data analytics.
Business Lending: New ways for companies to raise debt financing and have their credit risk assessed. Examples Include peer-to-peer lending platforms, asset-based lines of credit, micro-financing, and big data risk analytics.
Consumer and Commercial Banking: New ways for consumers and SMBs to interface with banking services. Examples include Internet-only banking services and virtual credit cards.
Consumer Lending: New ways for consumers to obtain personal loans and have their credit risk assessed. Examples includes peer-to-peer lending, micro-financing, big data analytics, and consumer credit scoring services.
Consumer Payments: Payment companies centered around...
The above graph summarizes the percentage of Financial Technology companies with a certain employee headcount range. Companies with 1–50 employees make up over 70% of the market, with the ranges of 51-100 and 201-250 making up about 10% each.
We are currently tracking 1,790 Financial Technology companies in 16 categories across 59 countries, with a total of $50 Billion in funding. Click here to see the full Financial Technology landscape report and data.
The above analysis summarizes the average company funding in each Financial Technology category. The Consumer Payments category leads the sector with over $90M in funding per company on average, followed by the Consumer Lending category with over $85M in funding per company.
We are currently tracking 1,765 Financial Technology companies in 16 categories across 58 countries, with a total of $49.5B in funding. Click here to see the full Financial Technology landscape report and data.