This article was written by our expert who is surveying the industry and constantly updating the business plan for a fintech.
Fintech is growing quickly, but revenue and profitability are uneven across segments and regions.
Use this guide to benchmark realistic revenue ranges, margin profiles, and the cost levers that drive results in payments, lending, wealth management, and more.
If you want to dig deeper and learn more, you can download our business plan for a fintech. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our fintech financial forecast.
Global fintech revenue was about $378 billion in 2024 across ~37,000 companies, with fewer than 100 firms capturing ~60% of sales; most fintech startups make under $2 million per year.
Median EBITDA margins vary widely: payments and scaled lending can exceed 20%, while early-stage companies run losses due to heavy customer acquisition, compliance, and product build costs.
| Metric | Current benchmark (2024–2025) | What it means for a new fintech |
|---|---|---|
| Total global fintech revenue | ~$378B (2024) | Large market, but revenue is concentrated in a few scaled players. |
| Companies worldwide | ~37,000 firms | Expect intense competition; differentiation and focus matter. |
| Average revenue per company (mean) | ~$10.2M (= $378B / 37k) | Mean is skewed up; do not use it as your target in Year 1–2. |
| Typical revenue for most firms | <$2M annually (most segments) | Plan conservative early revenues; scale with product–market fit. |
| EBITDA margin (industry average) | ~16% overall; 25%+ for top performers | Unit economics improve with scale and automation. |
| CAC & marketing as % of revenue | ~15%–30% | Budget for paid acquisition early; shift to LTV/CAC discipline. |
| Compliance cost burden | ~10%–20% of revenue | Plan for audits, KYC/AML, licensing, and RegTech tools. |
| Growth in 2023 vs. 2024 | ~13% (2023) → ~21% (2024) | Faster growth in APAC and in payments/wealth verticals. |
What is the average annual revenue per fintech company today?
The global mean revenue per fintech was about $10.2 million in 2024, but the figure is heavily skewed by a few large companies.
Total industry revenue was roughly $378 billion across ~37,000 firms, and fewer than 100 players captured ~60% of sales, so most startups make far less than the mean.
In most fintech verticals outside payments and lending, annual revenue under $2 million remains the norm for the majority of companies.
Set initial targets based on your niche, price model, and pipeline rather than the global mean; plan to cross $1–2 million ARR before scaling spend.
You’ll find detailed market benchmarks by niche in our fintech business plan, updated every quarter.
How has the average revenue changed over the last three years?
Industry revenue growth accelerated from ~13% in 2023 to ~21% in 2024, with momentum carrying into 2025 in fast-growing regions.
Some segments—digital banking, wealth platforms, and APAC fintechs—reported year-on-year gains approaching 40% in 2023 before normalizing.
Founders should model a base case near sector growth and a downside case at half that rate, adjusting for segment maturity and regulation.
Align hiring and infrastructure with conservative revenue scenarios to protect runway.
We cover this exact forecasting approach in the fintech business plan.
What are median profit margins by fintech segment (payments, lending, wealth)?
Median EBITDA margins differ by segment and scale; payments and established lenders tend to be higher than early-stage wealth or insurtech.
Smaller players often run below these medians until they pass scale thresholds where automation and unit economics improve.
| Segment | Median EBITDA margin | Drivers & notes |
|---|---|---|
| Payments | ~15% median; 20–30% at scale | Volume-based pricing, interchange, fraud cost control, strong operating leverage. |
| Lending (platform) | ~12–22% (very cycle-sensitive) | Credit losses, funding costs, and underwriting accuracy drive volatility. |
| Wealth/robo | ~15–22% | AUM fee mix, cross-sell of cash/credit, and retention dynamics. |
| Insurtech (distribution) | ~5–15% | Commission rates, claims leakage (for carriers), and CAC discipline. |
| Banking-as-a-Service | ~10–20% | Partner bank fees, compliance complexity, and take-rate pressure. |
| Crypto/Blockchain infra | ~10–25% (wide dispersion) | Custody yields, volume fees, market regime dependence. |
| RegTech | ~20–30% | Sticky SaaS, high gross margins, compliance-driven demand. |
How do fintech margins compare with traditional financial services?
Fintech EBITDA margins average ~16% and can exceed 25% for scaled firms, approaching large-bank profitability levels.
Major banks typically report net profit margins in the 15–30% range, but they rely on balance-sheet spreads and can be exposed to rate cycles.
Fintechs benefit from software-like gross margins and lower branch/admin overhead, with margins tied to unit economics and CAC.
As you scale, focus on gross margin, contribution margin per product, and LTV/CAC to converge toward 20%+ EBITDA.
This is one of the strategies explained in our fintech business plan.
What is a typical operating cost structure and margin impact for a fintech?
Most fintechs allocate budgets across tech, compliance, customer acquisition, and G&A/operations, with mix shifting as they scale.
Heavier CAC and compliance in early years suppress margins; automation and product-led growth improve economics later.
| Cost bucket | Typical share of total costs | Margin implications |
|---|---|---|
| Technology & Product | ~20–30% | Drives gross margin via automation; upfront build can depress EBITDA. |
| Regulatory & Compliance (incl. KYC/AML) | ~10–20% | Non-negotiable; leverage RegTech to cap cost per user. |
| Customer Acquisition & Marketing | ~15–30% | Key swing factor; improve payback & LTV/CAC to unlock margins. |
| Operations & Support | ~10–20% | Scale with process automation and self-serve UX. |
| G&A (finance, legal, HR) | ~8–12% | Declines as a % of revenue with scale. |
| Fraud & Credit Losses (where applicable) | Varies by model | Direct hit to contribution margin; invest in risk/AI. |
| Partner Fees (banking/tech) | ~3–8% | Optimize via volume tiers and multi-sourcing. |
What share of revenue do fintechs spend on customer acquisition and marketing?
Fintechs typically spend 15%–30% of revenue on customer acquisition and marketing, higher in consumer models.
Expect the upper end if you rely on paid channels in competitive categories like payments cards or consumer lending.
Best-in-class teams target <12-month CAC payback and LTV/CAC > 3x by Month 18–24.
Shift mix toward organic acquisition (SEO, referrals, partnerships) to lower blended CAC over time.
Get expert guidance and actionable steps inside our fintech business plan.
What are typical net profits or losses for early-stage vs. mature fintech firms?
Early-stage fintechs usually run net losses; mature, scaled firms often reach 16–25% EBITDA margins.
Public fintechs turned a corner by 2024, with a majority reporting profitability as operating leverage improved.
| Stage | Typical profitability | Key milestones |
|---|---|---|
| Pre-Seed / Seed | Loss-making; negative EBITDA | MVP, first regulatory approvals, early pilots. |
| Series A | Loss-making; improving gross margin | Product–market fit, initial unit economics discipline. |
| Series B | EBITDA breakeven in best cases | Channel mix optimization; fraud/credit model maturity. |
| Series C+ | ~5–15% EBITDA | Regional expansion; operating leverage kicks in. |
| Public/Scaled | ~16–25%+ EBITDA | Multi-product cross-sell; platform efficiencies. |
| Payments scale leader | 20–30% EBITDA | Transaction density, interchange optimization, low fraud. |
| Lending scale leader | 15–25% EBITDA (cycle-driven) | Stable funding, superior underwriting, low loss volatility. |
How do regulatory and compliance costs affect fintech profitability?
Compliance typically consumes 10%–20% of revenue and is higher in payments and lending due to KYC/AML and licensing.
Investing early in RegTech, policy automation, and standardized reporting reduces per-customer compliance cost as you scale.
Bank partnerships can mitigate licensing scope but add partner fees and oversight demands.
Model compliance as a fixed-plus-variable cost with triggers for audits and market expansion.
This is one of the many elements we break down in the fintech business plan.
How do bank or technology partnerships improve fintech margins?
Partnerships lower infrastructure costs, speed time-to-market, and reduce CAC via distribution access.
They also help navigate regulation (e.g., sponsor banks for BaaS) and unlock better unit economics through volume pricing.
Negotiate SLAs, data access, and pricing tiers to protect gross margin as volumes scale.
Diversify critical partners to de-risk outages and pricing power.
It’s a key part of what we outline in the fintech business plan.
What are the main regional differences in revenue and profitability (North America, Europe, Asia)?
North America has the largest revenue base and above-average margins; Europe is fragmented with lower average company revenue; Asia-Pacific shows the fastest growth and strong profitability pockets.
Emerging markets in APAC often post 27%+ CAGRs in payments and alternative lending.
| Region | Revenue & margin profile | Execution notes |
|---|---|---|
| North America | Highest average revenue; margins above global average | High CAC; prioritize partnerships and niche verticals. |
| Europe | Strong growth but lower revenue per firm | Regulatory fragmentation; localize and leverage PSD2/SEPA. |
| Asia-Pacific | Fastest growth; strong profitability in payments | Super-app ecosystems; cross-border payments opportunities. |
| Middle East | Rising revenue; supportive regulation | Bank alliances, government-led sandboxes. |
| Latin America | High growth; currency/credit volatility | Risk-adjusted pricing; collections infrastructure. |
| Africa | Mobile-money leadership; unit economics improving | Agent networks; interoperable payment rails. |
| South Asia | UPI-driven low-cost payments; thin take rates | Monetize via credit, insurance, and SME services. |
What valuation multiples are investors applying to fintech (revenue/profit)?
Valuation remains segmented: listed fintechs trade near high-single-digit revenue multiples, with higher levels for fast-growing SaaS-like models.
Private rounds and M&A can clear at higher revenue multiples for top-quartile growth and margins.
| Cohort | Typical multiple (2024–2025) | Notes |
|---|---|---|
| Public fintech (EV/Revenue) | ~8–9x | Premium for 20%+ growth and 20%+ EBITDA. |
| Private growth rounds | ~12–14x revenue | Compression if growth < 25% or margins thin. |
| M&A transactions | ~14x revenue (median) | Higher for RegTech/blockchain infra. |
| EV/EBITDA (profitable) | ~20–30x | Depends on growth durability and cash conversion. |
| Lending platforms | Discount vs. SaaS peers | Regulatory and credit-cycle sensitivity. |
| RegTech | Premium vs. sector | Sticky SaaS, lower churn, high gross margin. |
| Crypto infrastructure | Wide dispersion | Market-regime dependent; revenue mix matters. |
Which technology trends (AI, blockchain) most impact fintech revenue and profitability?
AI and blockchain have the clearest measurable impact on growth and margins today.
AI lifts underwriting accuracy, fraud detection, personalization, and back-office automation; blockchain enables new payment, custody, and settlement models.
| Technology | Revenue impact | Profitability impact |
|---|---|---|
| AI risk models | Higher approval rates at constant risk; smarter pricing | Lower loss rates; faster decisions reduce OPEX. |
| AI fraud & KYC | Lower false declines; trust improves conversion | Reduced fraud losses and manual review costs. |
| AI ops automation | Faster ticket resolution; better NPS → retention | Lean support teams; improved EBITDA. |
| Blockchain payments | New cross-border flows; programmatic commerce | Lower settlement fees and chargeback handling. |
| Tokenized assets | New custody and trading fees | High-margin infrastructure revenue. |
| RegTech platforms | Faster go-to-market in new regions | Compliance at lower cost per user. |
| Data platforms | Embedded finance cross-sell uplift | Improved LTV/CAC via personalization. |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Want to go further? Explore practical steps, templates, and numbers tailored to a fintech startup.
For deeper financial modeling, see our comprehensive plan and downloadable forecast built for new fintech founders.
Sources
- ABA Banking Journal – Fintech firms show strong fundamentals & growth
- QED Investors – Fintech’s next chapter
- World Economic Forum – Future of Global Fintech (2025)
- Fintech News – WEF & Cambridge fintech report
- Statista – Estimated revenue of global fintech
- The Digital Banker – Profitable growth phase
- Investopedia – Bank sector profit margins
- BCG – Global fintech: prudence, profits & growth
- KPMG – Pulse of Fintech H2 2024–2025
- McKinsey – A new paradigm of growth
-How much does it cost to build a fintech app?
-Fintech customer segments: how to prioritize
-Fintech: a complete guide
