UK FinTech Funding Hits a Decade Low
Hey FinTech Fanatic!
The UK FinTech funding story looks pretty rough right now. Just £1.8 billion was invested in UK FinTech in H1 2026, down almost two-thirds from the same period last year and the lowest level since KPMG started tracking the market in 2016.
What’s interesting is that the UK is still Europe’s biggest FinTech market — but its share of EMEA funding has fallen sharply. The bright spot? AI FinTech, which attracted £445 million across 79 deals, up from £382 million a year ago.
So the money hasn’t disappeared completely. Investors just seem to be getting a lot more selective about where they put it.
And despite the slowdown, the UK still dominates Europe’s FinTech unicorn rankings, with five of the continent’s top 10 — led, unsurprisingly, by Revolut at $115B.
Let’s get into today’s FinTech stories. 👇 See you tomorrow!
Cheers,
INSIGHTS
💡 European FinTech Unicorns: The UK Leads the Pack. Five of Europe’s 10 largest FinTech unicorns are based in the UK, led by Revolut at $115B, followed by Trade Republic at $14.38B and Checkout.com at $12B. Revolut alone is worth more than the other nine combined, while the entire top 10 is concentrated across just four countries. Read the full story here
FINTECH NEWS
🇬🇧 UK FinTech funding hits its lowest level in a decade, reflecting continued investor caution across the sector. The decline marks a sharp contrast with the record highs seen during 2021 and 2022. Continue reading
🇮🇳 Rezolv logs 6.5 million AI loan recovery interactions without telecallers. The FinTech platform selects optimal channels, language, and timing to reach borrowers and reduce collection costs.
🇸🇬 Chocolate Finance launches Chocolate Business to help companies earn better returns on idle cash. The cash managed account targets Singapore SMEs that lose an estimated S$800M annually in potential interest. Read more
PAYMENTS NEWS
🇦🇪 Airwallex commits $43M to enter the UAE payments market, expanding its cross-border infrastructure into the Middle East. The move targets businesses needing multi-currency payment and treasury services in the region. Read more
🇮🇳 Paytm achieves its first profitable full financial year, posting ₹552 crore net profit in FY26 after a ₹663 crore loss the prior year. CEO Vijay Shekhar Sharma said the company will now accelerate investments in AI and financial services.
🇨🇾 Viva.com wins Cyprus state electronic payments contract, ending a four-year procurement process. The deal covers taxes, vehicle renewals, and social insurance, with annual volume expected to exceed €1.5 billion. Viva.com will power the Gov.cy Payment Gateway using card and A2A payments plus POS terminals.
🇸🇬 DBS reports S$10 billion in tokenised payments over two years, signaling deeper investment in digital asset infrastructure. The bank expects tokenised finance spending to match traditional payments and custody budgets within two to three years.
🇪🇸 Rubean AG adds Spanish payment service Bizum to its SoftPOS app, reaching over 30 million active users. Bizum holds roughly 90% of Spain's real-time payment market and is now available across Rubean's merchant terminals.
🇮🇳 CHEQ launches CHEQ UPI, bringing rewards-linked UPI payments for RuPay Credit Card users. The product offers cashback and rewards on every UPI transaction made via RuPay Credit Card, targeting underserved credit card users on India's UPI network.
🌍 WhatsApp may expand payments to more countries, with a new iOS beta section listing the US, Germany, Australia, Canada and others. The feature includes options to save cards, manage billing info, and send money to contacts.
🇪🇺 ECB outlines privacy protections for the digital euro, with offline transactions visible only to payer and payee. Executive Board member Piero Cipollone said the system would offer greater privacy than conventional bank transfers.
DIGITAL BANKING NEWS
🇺🇸 Brazilian bank Itaú wins preliminary US charter approval, securing OCC permission to establish Itaú Bank, National Association. The national bank would serve wealthy clients in the United States.
🇹🇭 Thailand's first virtual bank Clicx Bank restarts its digital loan service after a brief pause caused by high-risk applicants. The bank now requires borrowers to consent to alternative data access from three partners to improve approval odds.
🇷🇴 ING Bank launches a new option allowing customers to save and invest in mutual funds simultaneously, combining both goals within a single product. Customers can split contributions between savings and mutual fund investments in one place.
🇦🇪 Ajman Bank launches AB ONE CORP, its new digital banking platform for Corporate and SME clients. The platform offers bulk payment initiation, streamlined approval workflows, and digital onboarding for faster client access. Advanced security controls and flexible reporting tools are also included.
🇪🇬 Egypt's central bank approves customer verification rules for online banking, enabling remote identity checks through a new digital financial identity platform. Governor Hassan Abdalla said it will allow more citizens to open accounts without visiting branches.
🇰🇼 NBK becomes the first Kuwait bank to offer fully digital onboarding for children's accounts. Parents can open a Zeina Account entirely through the mobile app, completing KYC, document upload, and account selection without visiting a branch.
BLOCKCHAIN/CRYPTO NEWS
🇦🇪 Rakbank Islamic enables Bitcoin trading through its banking app, partnering with Bitpanda's VARA-regulated entity. Customers can buy, sell, and hold Bitcoin directly from their Islamic current or savings account in UAE dirhams.
🇵🇰 Pakistan gives crypto platforms a September 5 deadline to comply or leave, as PVARA opens its licensing portal under new virtual asset regulations. Providers already operating must enter the licensing process or cease affected services.
🇪🇺 EU considers regulating DeFi vaults under MiCA, launching a consultation with feedback due by September 30. Experts caution that vaults distribute functions across smart contracts, making it difficult to map them to a single regulated entity.
🇻🇬 Crypto exchange BitMart weighs partial restart and creditor payouts weeks after announcing a full shutdown. The exchange appointed White & Case as restructuring counsel and expects to provide a roadmap by September 9.
STABLECOINS
🌍 Tether CEO says USDT adoption grows in four countries, citing Venezuela, Argentina, Bolivia, and Turkey as markets where users hold digital dollars amid monetary instability. Tether's technology reportedly served more than 570 million users worldwide as of March 2026.
🇳🇬 Blockradar hits $1 billion in transaction volume, marking a major milestone for the stablecoin infrastructure provider. The platform now supports hundreds of FinTech businesses across more than 20 countries for cross-border payments and remittances.
PARTNERSHIPS
🇦🇪 Shukria and Mastercard announce strategic collaboration to advance commercial payments in the UAE. The Shukria Commercial Card enables businesses to manage supplier payments, procurement, and expenses with global acceptance.
🇮🇳 Citi and Axis Bank team up on a leveraged India dollar deposit product, targeting demand from Indian businesses and investors seeking dollar-denominated returns. Read more
🌍 1Shot API joins the Circle Alliance Partner Network, providing non-custodial embedded wallets and gas abstraction for FinTechs and AI applications. The partnership builds on 1Shot's selection as a Circle Developer Grant recipient in Cohort 2.
🌍 Responsible Fintech Institute and Safeheron launch a cross-regional pilot on post-quantum security with banks and regulators from multiple jurisdictions. The initiative tests quantum-resilient MPC protocols for wallet generation and digital asset transfers on the NEAR testnet.
🇺🇸 Gemini and Apex Fintech Solutions sign a letter of intent to distribute regulated crypto event contracts through Apex's FCM network. Gemini Titan would serve as the exclusive venue for execution and clearing.
DONEDEAL FUNDING NEWS
🇮🇱 AppsFlyer secures a $400 million credit line from Bank Leumi, adding financial flexibility after a June transaction that valued the company at $2.7 billion. The credit facility follows investments from Google, Meta, Unity, and Moloco.
🇦🇪 Stablecoin neobank Fasset lands a $1 billion valuation, raising $68 million with backing from Japan's SBI. CEO Mohammad Raafi Hossain said revenue has grown six-fold as stablecoin payments and settlement expand.
🇺🇸 Lucky Hand Capital launches US receivables financing for marketing agencies after facilitating $700MM in funding. The product lets agencies convert approved receivables into working capital to cover campaign costs during extended payment cycles.
🌏 ShardLab invests in StoreHub and launches a joint venture to explore next-generation payments and rewards in Southeast Asia. StoreHub serves 20,000+ merchant locations and processes over 200 million transactions annually.
M&A
🇬🇧 Cognida acquires the Automate platform from Within, integrating auditable workflows to advance AI-native enterprise accounting. The acquisition bolsters Cognida's capabilities for global enterprise accounting operations.
MOVERS AND SHAKERS
🇮🇳 Slice appoints former SBI and ICICI Bank executives to leadership roles, strengthening its senior team as it scales its banking operations. The new hires bring decades of experience from India's largest public and private sector banks.
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