Europe Fintech Market Size (2024 - 2029)

The European fintech sector is experiencing significant growth, with its market size reflecting a robust expansion driven by favorable conditions such as advanced technological infrastructure and strong internet access. Despite challenges posed by the COVID-19 pandemic, which initially contracted the market, the sector has rebounded, supported by a shift towards digital solutions and increased investment interest from global investors. Europe leads in fintech valuation and investment, outpacing other regions and maintaining its status as a primary hub for fintech innovation and development.

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Market Size of Europe Fintech Industry

Europe Fintech Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 10.00 %
Market Concentration Medium

Major Players

Europe Fintech Market Major Players

*Disclaimer: Major Players sorted in no particular order

Europe Fintech Market Analysis

The Europe fintech market is estimated at USD 3,600 billion (in terms of transaction value) in the current year and is poised to register a CAGR of more than 10% during the forecast period.
Europe is the cradle of fintech since it is a global leader in the growth of both financial institutions and financial markets. Fintech companies in Europe are worth twice as much as any other tech sector on the continent. The region, which leads the rest of the world in terms of energy and internet access, provides ideal conditions for fintech growth. Furthermore, by 2025, further technological infrastructure will deliver 5G network coverage to 75% of the region's population. With several European countries (e.g., Switzerland, the Netherlands, and the Nordic countries) dominating the 2020 Global Innovation Index, Europe provides a corporate environment suitable for innovation and technology development.

COVID-19 scenarios show European economies contracting by 11% in 2020 and have adversely affected the fintech ecosystem. Fintech agreements have decreased as investors prefer to invest in mature companies rather than early-stage deals. Experts from the Emerging Payments Association found a significant contraction in the market, with fintech funding in Q1 2020 already down by USD 2 billion from Q4 2019. As governments shut down and investors took stock, the industry appeared vulnerable at the start of 2020, hitting a three-year low. In 2020, European fintech raised a total of USD 9.01 billion during COVID-19. The industry looks to have recovered, aided by a transition to digital and banks' increased interest in new infrastructure. Until June 2021, European fintech has raised USD 11.16 billion, trumping the USD 9.98 billion raised across the whole of 2019 - the previous highest year on record.

New venture capital fintech investments in Europe have been growing rapidly since the emergence of the COVID-19 pandemic. Fintech also looks set to maintain its position as the most funded area in European tech. European fintech has attracted an influx of cash from both the United States and Chinese investors, drawn in by the mounting success of the first-generation fintech. That also had a knock-on effect on valuations, meaning there are now more than 30 fintech unicorns in Europe, and several more are soon slated to reach the USD 1 billion milestones. Europe makes up 17% of the global cumulative valuation of fintech (around USD 2.26 trillion), its largest venture capital investment category receiving 20% of all venture capital in Europe: a higher percentage than in Asia and the United States.

Europe Fintech Industry Segmentation

An understanding of the present status of the Europe fintech market, along with detailed market segmentation, current market trends, changes in market dynamics, growth opportunities, and an in-depth analysis of the market size and forecast for the various segments, is provided in the report.

Europe Fintech Market is segmented by Service Proposition (Money Transfer and Payments, Savings and Investments, Digital Lending and Lending Marketplaces, Online Insurance and Insurance Marketplaces, and Other Service Propositions) and Country (United Kingdom, Germany, France, and the Rest of Europe). The report offers Market size and forecasts for Europe Fintech Market in value (USD billion) for all the above segments.

By Service Proposition
Money Transfer and Payments
Savings and Investments
Digital Lending and Lending Marketplaces
Online Insurance and Insurance Marketplaces
Other Service Propositions
By Country
United Kingdom
Germany
France
Rest of Europe
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Europe Fintech Market Size Summary

The European fintech industry is a powerhouse within the global financial technology landscape, driven by its robust financial institutions and markets. The region's advanced technological infrastructure, including widespread energy and internet access, creates a fertile ground for fintech innovation and growth. Despite challenges posed by the COVID-19 pandemic, which initially led to a contraction in fintech investments, the sector has shown resilience and recovery. The pandemic accelerated the shift towards digital solutions, with increased interest from banks in new infrastructure. This resurgence has attracted significant venture capital, positioning fintech as the most funded sector in European technology. The influx of investment from both American and Chinese investors has further bolstered the market, leading to a surge in fintech valuations and the emergence of numerous unicorns.

Regulatory developments, such as open banking and PSD2, have been instrumental in fostering a dynamic fintech environment in Europe. These regulations have facilitated the rise of challenger banks and enhanced data-driven financial services, contributing to market consolidation. The UK has traditionally led in fintech funding, but other countries like Germany, Sweden, and France are rapidly closing the gap. The European fintech landscape is characterized by a high level of adoption, particularly in countries like the Netherlands, the UK, Germany, Sweden, and Switzerland, where consumer receptiveness to fintech solutions is notably high. Major players in the market, including Adyen, Nexi, Revolut, and Klarna, are expanding their offerings to include embedded financial products and innovative savings solutions, further driving the sector's growth and evolution.

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Europe Fintech Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 A Brief on Internet and Smartphone Penetration in the Region

    6. 1.6 Insights on Key Regulations and Industry Policies Impacting the Fintech Market in the Region

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service Proposition

      1. 2.1.1 Money Transfer and Payments

      2. 2.1.2 Savings and Investments

      3. 2.1.3 Digital Lending and Lending Marketplaces

      4. 2.1.4 Online Insurance and Insurance Marketplaces

      5. 2.1.5 Other Service Propositions

    2. 2.2 By Country

      1. 2.2.1 United Kingdom

      2. 2.2.2 Germany

      3. 2.2.3 France

      4. 2.2.4 Rest of Europe

Europe Fintech Market Size FAQs

The Europe Fintech Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)

Adyen, Nexi, Klarna, N26 and Revolut are the major companies operating in the Europe Fintech Market.

Europe Fintech Market Report Snapshots

Fintech in Europe Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)