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ARTICLE · 06 AUGUST 2020

Fintech M&A Activity In 2020: The Digital Economy Is Here

While uncertainty arising from the COVID-19 pandemic has slowed down most deal activity, Fintech, in particular the payments space, is a big exception.

CanadaTechnology

Paying for Payments

While uncertainty arising from the COVID-19 pandemic has slowed down most deal activity, Fintech, in particular the payments space, is a big exception. Recent analysis from KPMG revealed that UK payment deals in the first quarter of 2020 alone exceeded the total number of deals in 2019. Granted, deal sizes were relatively low value, but the incredible rate highlights how the usual frantic activity in this area has only been propelled by the unique challenges this pandemic has presented, namely the need to switch to cashless and contactless transactions. Canadian Fintech is also poised for more deal activity. Despite a Fintech adoption rate of 50%, the Canadian market still lags behind adoption rates in Asian and European countries, such as China and India at 87% and the UK at 71%, and the global average rate of 60%.

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