Payment Companies Represent Australia’s Largest FinTech Segment

As of late 2024, over 150 companies providing payment services are headquartered in Australia. This sector accounts for about 20% of the country’s total FinTech industry.

KPMG Australia, the Australian branch of the international audit and consulting corporation, presented the “Australia Fintech Landscape 2024” report, analyzing the local financial technology industry. The key takeaway from the report is a 7% decrease in the number of active industry companies over the past year.

According to analysts, this trend is due to reduced investments and consolidation in the sector. Around 42% of all closures were due to mergers and acquisitions, as FinTech startups and companies sought scaling and self-financing opportunities amid reduced investment. In all other cases, closures were caused by bankruptcies.

The decline was observed across almost all segments of the FinTech industry, with the largest being the payment sector, which includes one in five financial companies in the country. Currently, 154 companies operate in the sector, and seven companies ceased operations over the past year.

Blockchain companies make up around 10% of Australia’s FinTech industry. By the end of 2024, 73 cryptocurrency companies continue to operate in the market, with eight firms closing over the year. In percentage terms, this sector saw the largest decline, except for neobanks.

Despite the decrease in the number of active companies, Australia’s FinTech industry continued to grow in 2024. For example, the local central bank launched a three-year program for the development of a wholesale version of the digital Australian dollar (eAUD). At the same time, Australia and New Zealand Banking Group (ANZ), the largest financial conglomerate in the country, tested Chainlink’s Cross-Chain Interoperability Protocol for settlements involving tokenized assets.