2026 appears set to become a groundbreaking year for Israeli fintech following months of strong momentum, with the recent period of recovery for the industry giving way to greater levels of dominance on the world stage.
According to Israeli technology investment group Viola Ventures, Israel will play a key role in a maturing global financial technology sector following last year’s period of consolidation.
In its 2026 State of Fintech report, Viola suggested that Israeli fintech firms were ‘uniquely positioned’ to be overrepresented among the world’s key financial technology players.
In total, Israeli fintechs raised around $1.4 billion in 2025, representing a steady pace in comparison to the years prior. However, the pace of acquisitions for domestic financial technology firms rallied to $5.8 billion last year, up from just $1.2 billion in 2024.
The $3 billion purchase of Melio by Xero last summer and the $2.6 billion acquisition of Next Insurance by Munich Re were two driving forces behind the industry’s money-spinning takeovers.
Summer 2025 also saw Bnei Brak-headquartered investment platform eToro launch at a valuation of more than $4 billion.
Israeli fintech plays an integral role in the nation’s booming tech sector, which is not only one of the largest of its kind in the world but is also responsible for around 20% of GDP, 15% of jobs, and over half of Israel’s exports.
While fintech accounts for around 10% of the tech workforce, the sector encompasses 13 unicorns (startups valued in excess of $1 billion) and 10 publicly listed fintechs.
At a time when global investment in fintech appears to be regaining momentum, Israel’s prosperous finance technology ecosystem is well-positioned to spearhead innovations throughout the industry.
Building on 2025’s Recovery
The global fintech outlook was booming off the back of the pandemic years, but funding has since fallen 77% between its 2021 peak and 2024.
Despite this, investor confidence in finance technology has begun to rebound significantly, and Israel is showing signs of strength as one of the world’s most innovative fintech players.
Fintech trails only the cybersecurity sector as Israel’s largest, and last year saw seven out of the 15 most valuable Israeli startups hailing from the financial technology landscape.
Among Israel’s strongest performers is payroll firm Deel, which was most recently valued at $12 billion, the $8.3 billion-valued Tipalti, which recently acquired Israeli startup Statement, and Rapyd, which announced a $500 million Series E round in March 2025 at a $4.5 billion valuation.
Although Rapyd’s most recent valuation is a far cry from its $15 billion peak, it shows that Israel’s brightest fintech players are still laser-focused on out-innovating the recent slowdown experienced within the industry.
Israeli fintech has been buoyed by a more conducive environment for finance technology, with interest rates falling consistently throughout the year, helping to boost consumer spending and venture activity.
In the United States, the Trump administration’s shift towards more lenient antitrust enforcement and a pro-business regulatory stance has helped to create a more positive outlook for mergers and acquisitions, fostering further innovation and consolidation within the industry.
Trump’s pro-growth strategy has helped to drive Wall Street higher in recent months, with the S&P 500 breaking the 7,000 barrier for the first time in January 2026. While this could lead to greater volatility in the United States economy due to the reliance of tech stocks on the continuation of the AI boom, it can help to drive higher interest and more adoption rates for Israel’s constellation of fintech stars.
These positive factors from last year are expected to lay the groundwork for more growth in 2026, with Israeli firms playing a central role.
Revolut Expansion Shows Israeli Lure
Last year, British fintech giant Revolut expressed an interest in expanding its presence in Israel, opening talks with the Bank of Israel to acquire a ‘lean bank’ license in the country.
The move would allow the firm to receive deposits and provide credit within Israel and could help Revolut to become a major player in growing the nation’s fintech ecosystem.
With a valuation of around $45 billion, Revolut’s interest in Israel signifies the growing global relevance of the Startup Nation’s fintech sector and the receptiveness of consumers domestically.
With Israeli firms wooing major US players when it comes to acquisitions, Revolut’s movements in Israeli markets show that the flow of confidence in the domestic fintech sector flows both ways.
Brightening Prospects for Israeli Fintech
Israel has become a driving force in the global fintech recovery in 2025, and 2026 appears set to be a watershed year for the growth of the sector.
With the Startup Nation already creating a conducive environment for the growth of the finance technology sector, the future looks bright for Israel’s constellation of fintech unicorns, looking to the year ahead.
As global interest helps to support more acquisitions and entry into domestic markets alike, 2026 will be a major year for Israel’s fintech outlook.