While fintech transactions fell by 8 1TP3Q worldwide in 2022, Africa was the only continent in which its fintech transactions grew by 25 1TP3Q, according to a report from the CB Insights platform.

Africa is the only major region where fintech transactions increased in 2022. These transactions reached 227 transactions, an increase of 25 1TP3Q year-on-year. However, global deals with technology companies focused on financial services have decreased by 8% compared to 2021.

In the other major regions of North America, South America, Asia and Europe, fintech transactions fell in 2022 compared to their 2021 level. In its “State of Fintech 2022” report, published on January 18, the CB Insights platform justifies the increase from transactions within African fintech to the emergence of the Internet and mobile telephony on the continent.

“In Africa, the deployment of fintech solutions has skyrocketed as access to technologies such as the internet and mobile has increased,” said Anisha Kothapa, senior fintech analyst at CB Insights.

By increasing the number of their transactions in African fintech, local and foreign investors have invested more in fintech start-ups, with smaller amounts. Thus, 89% of fintech operations carried out in 2022 in Africa were in companies in the start-up phase. For CB Insights, this is “a five-year record for the continent and the highest among all other regions,” the document reads.

Beyond fintech transactions, it is worth noting that the overall amount raised by these companies around the world also decreased by 46%, reaching $75.2 billion in 2022. In Africa, fintechs raised $1.8 billion in 2022, an amount 28% less than the 2.5 billion obtained in 2021.

In the United States, fintech financing in 2022 decreased by 50%, to $32.8 billion. Even the number of unicorns (a company valued at more than $1 billion) in the fintech sector fell in 2022. Only 69 unicorns have been listed worldwide, a decrease of 58% from the 166 unicorns registered in 2021.

Source: EcomNewsAfrique