With fintech investments rising from $1.9 billion in 2018 to $3.7 billion, India became the third largest fintech or financial technology centre in the world. Our nation is only behind the U.S. and U.K. In the year 2019, around 198 fintech deals were signed in India, the majority of which went into payment startups.
Investment in payment companies grew from $660 million in 2018 to $2.1 billion – a three-fold increase, followed by a 74% rise in insurtech funding, says MoneyControl. A similar trend was witnessed in other major markets, including the U.S. and the U.K., making fintech a sweet investment spot.
The rise of India to the top three positions in the global fintech environment shows the growth potential of this industry in transforming the digital payment space. It also bodes well for the development of cutting-edge payment technology to help businesses – both small and big, start selling online.
Some other key insights related to these advancements are:
- 58% of the total funds raised went into payment startups, followed by Insurtechs raising 13.7% fund’s share.
- Fintechs on the lending side accounted for 10.8% of the total funds invested.
- Despite these gains, a dip of 3.7% has been witnessed in the global value of fintech deals.
The evolving fintech domain has filled hope in the minds of Indian SMBs that are waiting in the wings to transform their local business and attract online customers. On the consumer side, the advancements are considered as the harbinger of safe, secure, and hassle-free payment technology.
Read more about payment gateway, payouts, and offline/online payment modes at Paytm for Business Blog.