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Fintech investments in Australia reached $376.5 million during H1 2020, which represents a 150% increase when compared to the same period from last year when $149.05 million for raised by Fintechs in the country.
But there was a significant drop in mergers and acquisitions (M&A) and private equity (PE) deals. This resulted in total Fintech investments in Australia declining from $1.3 billion in H1 2019 to $548 million in H1 2020, according to the most recent KPMG Pulse of Fintech report.
The largest Australian Fintech deals during H1 2020 were from Airwallex and Judo Bank, which secured $160 million in VC investment and $146.6 million from PE investors, respectively. The “Buy Now, Pay Later” or installment Fintech segment continues to attract substantial investments, with Zip acquiring US-headquartered QuadPay and China’s tech giant Tencent purchasing shares in Afterpay.
There are many more merchants now that want to upgrade their e-commerce and POS options so that customers can perform digital transactions.
Dan Teper, KPMG Australia Partner and Head of Fintech, stated:
“Australia is showing itself to be a strong Fintech hub globally, with solid investments in H1’20 despite rising pandemic concerns. As Fintechs in Australia aggressively work to scale and maturity, they are expected to drive increasing investment in the space. …
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