Asia-Pacific Recorded US$27.5 Billion Fintech Investment in 2021
The Asia-Pacific fintech investment market remains vibrant amid the regulatory activities in China. In 2021, China continued to step up regulations in the fintech space, most notably through banning cryptocurrency transactions, bitcoin mining, and the facilitation of cryptocurrency trading. While the uptick in regulatory activity in China led some fintech investors to pull-back from China, it also raised the profile of other fintech hubs in the region — including India and Singapore. Among the top 10 deals in the region this year, China's MediTrust Health ranked 9th with US$308 million raised, while deals in Japan, South Korea, India and Singapore accounted for the others.
During 2021, interest in embedded finance propositions grew in the Asia-Pacific region, particularly Southeast Asia where banks are increasingly looking for assistance to improve their embedded finance, digital wallet, and supply chain finance capabilities. Interest in BaaS solutions was also on the rise during the year with numerous banks and startups across the region focused on the issue, whether as service providers, partners, or potential clients.
During 2021, the Buy-now-pay-later (BNPL) space in the Asia-Pacific region remains hot, partly driven by PayPal's acquisition of Paidy for US$2.7 billion in H2'21.