Transaction Monitoring in Fintech Market Report 2025

The transaction monitoring in fintech market size has grown rapidly in recent years. It will grow from $5.53 billion in 2024 to $6.54 billion in 2025 at a compound annual growth rate (CAGR) of 18.2%. The growth during the historic period was driven by rising digital payments, increasing regulatory compliance, growing financial fraud risks, higher adoption of online banking, and greater demand for fraud detection solutions.

The transaction monitoring in fintech market size is expected to see rapid growth in the next few years. It will grow to $12.61 billion in 2029 at a compound annual growth rate (CAGR) of 17.9%. The growth in the forecast period is expected to be driven by a stronger focus on data protection, increasing volumes of real-time payments, growing regulatory scrutiny, expanding fintech adoption, and rising cybercrime threats. Key trends during this period include advancements in machine learning, integration of blockchain technology, implementation of technology-enabled real-time monitoring, developments in predictive analytics, and progress in cloud-based deployment.

The rising volumes of digital payments are expected to drive growth in the transaction monitoring in fintech market. Digital payments, which allow electronic transfer of money without physical cash, are expanding due to increasing smartphone and internet penetration, making transactions more accessible and convenient. Transaction monitoring enhances these payments by offering real-time oversight, improving security and reliability. It helps detect suspicious activities promptly, reducing fraud risk and fostering trust in financial systems. For instance, in 2023, contactless card payments in Europe rose by 24.3% to 20.9 billion, up from 2022, according to the European Central Bank.

Companies are advancing transaction security through real-time fraud detection solutions. Real-time fraud detection monitors transactions instantly to identify and block suspicious activity, preventing financial losses and ensuring compliance. For example, in October 2023, Unit21 Inc. launched a real-time monitoring platform enabling financial institutions to track payments across rails such as FedNow, RTP, and Zelle, detect suspicious transactions within sub-seconds, and automate decision-making, enhancing operational efficiency while minimizing false positives.

In April 2022, Fenergo Limited acquired Sentinels B.V., a Netherlands-based AI-driven transaction monitoring firm, to integrate advanced monitoring into its client lifecycle management solutions. This acquisition enables Fenergo to enhance financial crime detection and maintain granular KYC compliance for financial institutions.

Major players in the transaction monitoring in fintech market are SAS Institute Inc., Fair Isaac Corporation, Temenos AG, Chainalysis Inc., Feedzai Inc., Sumsub Inc., Napier Technologies Limited, Alessa Inc., Hawk AI GmbH, Quantifind Inc., ThetaRay Ltd., Tookitaki Technologies Private Limited, Unit21 Inc., ComplyAdvantage Ltd., Featurespace Limited, Silent Eight Pte. Ltd., Sanction Scanner Ltd., Oracle Financial Group Inc., SEON Technologies Ltd., and Sift Science Inc.

North America was the largest region in the transaction monitoring in fintech market in 2024. The regions covered in transaction monitoring in fintech report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the transaction monitoring in fintech market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Transaction monitoring in fintech is the ongoing process of tracking and analyzing financial transactions in real-time or near real-time to identify suspicious, unusual, or potentially fraudulent activities. Its primary goal is to ensure regulatory compliance, prevent money laundering, fraud, and financial crimes, and protect both institutions and their customers. The process often uses automated systems and artificial intelligence (AI) to efficiently detect anomalies.

The main components of transaction monitoring in fintech include solutions and services. A solution is an integrated system designed to address specific challenges by combining tools, processes, and components to achieve desired outcomes. Deployment options include cloud-based, on-premises, or enterprise systems, and solutions are suitable for small and mid-size enterprises as well as large organizations. Applications include identity verification, transaction screening and continuous monitoring, anti-money laundering, fraud detection and prevention, and more, serving end users across banking, financial services, and insurance (BFSI), fintech companies, e-commerce, government, and information technology and telecommunications sectors.

The transaction monitoring in fintech market research report is one of a series of new reports that provides transaction monitoring in fintech market statistics, including transaction monitoring in fintech industry global market size, regional shares, competitors with the transaction monitoring in fintech market share, transaction monitoring in fintech market segments, market trends, and opportunities, and any further data you may need to thrive in the transaction monitoring in fintech industry. This transaction monitoring in fintech market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The transaction monitoring in fintech market consists of revenues earned by entities by providing services such as real-time suspicious transaction detection, risk scoring, and regulatory reporting technologies. The market value includes the value of related goods sold by the service provider or included within the service offering. The transaction monitoring in fintech market also includes sales of software platforms, data analytics tools, machine learning-powered monitoring systems, and integration solutions. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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