\u201cIt has been a challenging start to 2026, with levels of investment on a par with those seen during the first wave of the pandemic,\u201d said Hannah Dobson<\/a>, KPMG partner and the group\u2019s U.K. FinTech lead.<\/p>\n \u201cThat said, there are pockets of significant demand, particularly in AI, where investment is gaining prominence even as the wider market has softened.\u201d<\/p>\n Although the U.K. holds the top position for FinTech investment for Europe \u2013 as well as the larger European, Middle East and Africa (EMEA) region \u2013 its prominence has faded, the report said. The country accounted for 22% of all EMEA investment during the first half of this year, down from 68% at the end of 2025.<\/p>\n We\u2019d love to be your preferred source for news<\/a>.<\/p>\n Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!<\/p>\n The number of deals also fell to its lowest level since 2016, the report added. Between mergers and acquisitions, private equity<\/a> and venture capital, there were 205 U.K. FinTech deals during the first half of 2026, versus 281 in the first half of 2025.<\/p>\n \u201cYet, when it comes to deal activity, the U.K. still sits second only to the U.S. globally and exceeds all other European countries combined,\u201d KPMG said.<\/p>\n Among the largest deals during the first half of this year is the $175 million private equity investment issuer-processor Paymentology<\/a> announced<\/a> in May, designed to fund the company\u2019s expansion, product development and hiring.<\/p>\n![\"Preferred](\"https:\/\/www.pymnts.com\/wp-content\/uploads\/2026\/02\/Google-PYMNTS-blackbox.svg\")
<\/p>\n