FinTech Winter is coming… its time to bundle up ❄️; PayPal is deepening its in-store push, or why the future of commerce is unified 🔁; Does Eat Now, Pay Later illustrate the market top of BNPL? 🤔

FinTech is Eating the World, 14 October

Hey Everyone,

TGIF! Today’s issue is a brilliant one to close out the great week as we’re going to look at FinTech Winter that is coming so you need to bundle up (what’s the future like + 2 great bonus reads), PayPal that’s deepening its in-store push and yet again showing that the future of commerce is unified (+ why PayPal’s biggest threat is coming from around the Block), and the BNPL market that’s probably hit the top with the launch of Eat Now, Pay Later (bonus is a contrarian read why every FinTech must have a BNPL strategy). Let’s jump straight into the hot stuff:

FinTech Winter is coming… its time to bundle up ❄️

New data 📊 Yesterday I talked about the Crypto Winter that’s getting freezing cold, and today it’s about time to talk about FinTech Winter. Which is already here…

According to data from CB Insights, venture-capital-backed FinTechs raised less cash in Q3 as the economic downturn led to a leaner funding climate.

More on this 👉 Here are the key things you must know:

• Global FinTech funding plummeted 38% QoQ to $12.9B, marking a nine-quarter low.

  

• The average deal size for FinTechs is $20M so far this year, down 38% from $32M in 2021

  

• FinTech M&A deals fell to 155 in Q3, dropping 14% QoQ and 33% lower YoY.

• Only six 6 FinTech unicorns were created in Q3, falling from 21 in Q2 and 48 in Q3 the previous year.

How to make sense of this? What does it mean for the future of FinTech and what FinTech companies could do to survive and thrive in the changing environment? Here’s the takeaway: