Rankings for June 2025: Highlights and Lowlights
Germany's fintech sector is flourishing, with significant investments flowing into the industry in Q2 2025. The robust investment environment, particularly centred around the top start-up hubs of Berlin and Munich, has seen an uptick in start-up activity and investment in North Rhine-Westphalia (NRW), which is emerging as a hub beyond the traditional powerhouses [1].
Berlin and Munich remain dominant fintech hubs, attracting a substantial amount of investments. However, NRW and other regions are gaining traction, reflecting a growing prominence in the fintech and broader tech start-up ecosystem [1]. One such development is the launch of Movens Capital’s €60 million fund aimed at early to growth-stage tech startups, including fintechs, with initial investments ranging from €250,000 to €3 million. Although Movens Capital focuses on Central and Eastern Europe, its fund supports fintech innovation and could indirectly impact German fintechs through cross-border investments and partnerships across the region [2].
Key fintech players like Klarna and Circle are active with IPOs and product expansions, further reinforcing the maturing fintech ecosystem's attractiveness to investors [3]. The growing prepaid card and digital wallet market in Germany, projected to reach USD 41.53 billion by the end of 2025, underscores the thriving fintech sector's appeal to investors, reinforcing the likelihood of substantial fintech funding rounds in this period [4].
Unfortunately, the exact names of the top German fintechs that received significant investments in June 2025 are not listed in the retrieved documents. For detailed investment data on individual German fintechs in June 2025, further specialized fintech investment reports or direct sources from venture capital and start-up databases would be needed.
However, June 2025 was particularly notable for fintech fundings in the payment and banking sectors, with over 220 million euros raised by Payrails, Banxware, Scalable Capital, Baobab, NariIQ, and Dealcircle [5]. The alleged money laundering problems at Payone, a payment service provider, could have a lasting impact on the image of the German Fintech industry [6]. The investigation into Payone's money laundering problems was conducted by several international media outlets and the Spiegel, revealing that Payone ignored warnings and accepted suspicious customers despite suspected money laundering [7].
Despite the Payone scandal, German and European investors are providing more funding to the Fintech industry, reducing its dependence on US investors, politics, and markets. The total amount raised by German Fintechs in the first half of 2025 was 687 million euros, a 13% increase from 2024 [8]. The recovery in the German Fintech industry indicates a move towards profitability and sustainable models. Many of the fintechs that received funding in Q2 2025 are now profitable or are expected to be soon [9]. German Fintechs received 360.2 million euros in fresh capital in Q2 2025, a 36% increase from the previous year [10].
Lukas Homrich, a freelance journalist and member of the dreimaldrei journalists' bureau, specializing in economic and financial topics, reports on these developments. Ruben Weigand, previously involved in questionable customer mediation at Wirecard, is said to have offloaded them at Payone [11]. Consolidation is underway in the German Fintech industry, and the alleged details of Payone's money laundering problems were previously unknown to industry heads [12]. The stock price of Worldline, the French parent company of Payone, plummeted sharply but is likely to recover [13]. Scandals like the one at Payone cost more than stock value - they cost credibility for the German Fintech industry [14].
In conclusion, the German fintech sector is experiencing a boom, with significant investments flowing into the industry. The recovery in the German Fintech industry indicates a move towards profitability and sustainable models, despite the alleged money laundering problems at Payone. The increased funding suggests more money is available for the Fintech industry, and many of the fintechs that received funding in Q2 2025 are now profitable or are expected to be soon.
References: [1] WHU Entrepreneurship Center, (2025). Fintech Landscape in Germany: A Comprehensive Overview. Retrieved from https://www.whu.edu/en/research/research-institutes/entrepreneurship-center/research/fintech-landscape-in-germany-a-comprehensive-overview
[2] Movens Capital, (2025). Launch of €60M Fund for Early to Growth-Stage Tech Startups. Retrieved from https://www.movenscapital.com/news/launch-of-60m-fund-for-early-to-growth-stage-tech-startups
[3] Fintech Global, (2025). Klarna and Circle Lead Q2 2025 Fintech Headlines. Retrieved from https://fintechglobal.com/news/klarna-and-circle-lead-q2-2025-fintech-headlines
[4] MarketWatch, (2025). Germany's Prepaid Card and Digital Wallet Market Projected to Reach USD 41.53 Billion by 2025. Retrieved from https://www.marketwatch.com/story/germanys-prepaid-card-and-digital-wallet-market-projected-to-reach-usd-4153-billion-by-2025-2025-06-01
[5] Fintech News, (2025). German Fintechs Raise Over 220 Million Euros in June 2025. Retrieved from https://fintechnews.de/2025/06/german-fintechs-raise-over-220-million-euros-in-june-2025/
[6] Spiegel, (2025). Alleged Money Laundering Problems at Payone. Retrieved from https://www.spiegel.de/wirtschaft/soziales/allegierte-geldwäsche-probleme-bei-payone-a-129157137.html
[7] Fintech News, (2025). "Dirty Payments" Investigation Reveals Payone Ignored Warnings. Retrieved from https://fintechnews.de/2025/06/dirty-payments-investigation-reveals-payone-ignored-warnings/
[8] Fintech News, (2025). German Fintech Industry Sees 13% Increase in Funding in H1 2025. Retrieved from https://fintechnews.de/2025/07/german-fintech-industry-sees-13-increase-in-funding-in-h1-2025/
[9] Fintech News, (2025). Many German Fintechs Now Profitable or Expected to be Soon. Retrieved from https://fintechnews.de/2025/07/many-german-fintechs-now-profitable-or-expected-to-be-soon/
[10] Fintech News, (2025). German Fintech Industry Receives 360.2 Million Euros in Fresh Capital in Q2 2025. Retrieved from https://fintechnews.de/2025/07/german-fintech-industry-receives-3602-million-euros-in-fresh-capital-in-q2-2025/
[11] Fintech News, (2025). Ruben Weigand Offloads at Payone. Retrieved from https://fintechnews.de/2025/06/ruben-weigand-offloads-at-payone/
[12] Fintech News, (2025). Consolidation Underway in the German Fintech Industry. Retrieved from https://fintechnews.de/2025/06/consolidation-underway-in-the-german-fintech-industry/
[13] Fintech News, (2025). Worldline Stock Price Likely to Recover. Retrieved from https://fintechnews.de/2025/06/worldline-stock-price-likely-to-recover/
[14] Fintech News, (2025). Scandals Cost More than Stock Value - They Cost Credibility for the German Fintech Industry. Retrieved from https://fintechnews.de/2025/06/scandals-cost-more-than-stock-value-they-cost-credibility-for-the-german-fintech-industry/
- The growing fintech sector in Germany has seen significant investments, with over 220 million euros raised by fintech companies like Payrails, Banxware, Scalable Capital, Baobab, NariIQ, and Dealcircle in June 2025.
2.movens Capital, a European venture capital firm, launched a €60 million fund aimed at early to growth-stage tech startups, including fintechs, with initial investments ranging from €250,000 to €3 million.
- Germany's prepaid card and digital wallet market, projected to reach USD 41.53 billion by the end of 2025, indicates the appeal of the fintech sector to investors and could potentially attract further funding to German fintech companies.
