Fitch Ratings expects fundamentals to remain strong in North American & European FinTech through 2022, although growth will slow after many issuers lap the easy coronavirus comparables.

Numerous secular tailwinds are underway; these include growth in areas such as: (i) digital payments (cryptocurrencies, contactless, mobile payments), (ii) buy now, pay later, (iii) software & mobile solutions, and (iv) increased ecommerce adoption. These growth trends should support healthy revenue and profitability growth for many issuers in the sector.

Fitch expects strength across the sector, offset in certain areas by continued macroeconomic uncertainty and the ongoing pandemic’s impact to consumer and corporate spending in 2022. E-commerce remains strong, but is expected to slow some following easy pandemic-related comparables. FinTechs remain active in M&A; and digital technologies, including software, remain in focus for both organic and inorganic investments.