Key PayTech investment stats in Q1 2023:
• PayTech accounted for 9.7% of global FinTech deals in Q1 2023 with 132 deals
• The PayTech subsector raised $8.1bn in total during Q1 2023, a 37% share of FinTech investment
• The US was the most active PayTech country with a 36% share of deals at 47 deals
PayTech accounted for the most funding in the FinTech sector, globally, during Q1 2023, propelled by a large $6.5bn deal from Stripe, an online payments provider. PayTech companies raised a combined $8.1bn ($1.6bn not including Stripe deal) in Q1 2023, a 37% share of total global FinTech funding in Q1 2023. PayTech companies announced 132 deals in Q1 2023, a 9.7% share of FinTech deals.
Stripe, an online payments provider, was the largest PayTech deal in Q1 2023, raising $6.5bn in their latest private equity funding round from existing investors as well as new investor, including GIC, Goldman Sachs Asset and Wealth Management and Temasek. Co-founder and president John Collison says the funding will give current and former employees the opportunity “to access the value they’ve helped create”. Stripe says 100 businesses now handle more than $1 billion on Stripe every year, with 75% using Stripe for more than just payments and more than 70% using the FinTech to manage operations across multiple countries.
The US was the most active FinTech country in Q1 2023 with 47 deals announced, a 36% share of global PayTech deals. The UK was the second most active PayTech country in Q1 2023 with 11 deals, an 8.5% share of deals. Australia and India were the joint third most active PayTech countries with six deals each.
The total transaction value for global online payments is projected to reach $9.46tn in 2023 and grow at a CAGR of 11.80% from 2023 – 2027. Africa is set to have the highest growth at a CAGR of 16.1% from 2023 – 2027 of any region. In total Africa is on track to have a total transaction value of $146bn, a 1,5% share of global transaction value in 2023. China has the largest projection for total transaction value at $3,639bn in 2023 of any country.
The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2023 FinTech Global