Global fintech companies recorded a combined market capitalisation decline of approximately $420bn over five years, as investors reassessed valuations amid intensifying competition and concerns about growth prospects, a new industry analysis has shown.

The decline placed fintech among the four sectors with the largest combined losses in market value among the world’s 1,000 biggest publicly listed companies between August 13, 2021, and September 25, 2026, according to a report by BestBrokers, a financial research firm.

The analysis found that 172 of the 1,000 companies lost market value during the period, with payments companies PayPal, Block and Adyen among the biggest casualties. PayPal accounted for the largest individual decline, losing $275.57bn in market capitalisation.

The American payments company’s market value fell by 85.41 per cent, from $322.65bn in August 2021 to $47.08bn in September 2026, reflecting a sharp reversal from the valuation it commanded during the pandemic-era boom in digital payments.

Block, the financial technology company formerly known as Square, lost $77.6bn, representing a 62.81 per cent decline, as its market capitalisation dropped to $45.9bn.

Dutch payments company Adyen recorded a 61.94 per cent decline, shedding $51.15bn to reach $31.43bn.

The findings highlight the pressure on fintech valuations following a period of rapid expansion in digital financial services, when increased adoption of online payments and financial technology attracted substantial investor interest.

Beyond fintech, the report identified technology as the sector with the largest combined market capitalisation loss at $637.3bn. Food and beverage companies followed with $545.6bn, while fashion and apparel firms lost $472.7bn.

Traditional financial institutions also faced significant valuation declines. The analysis found that 15 banks and financial services companies collectively shed $203.5bn in market value.

China Merchants Bank recorded the largest absolute decline among traditional financial institutions, losing $34.8bn, or 17.48 per cent, and closing the period with a market capitalisation of $164.31bn.

Ping An Bank suffered a steeper percentage decline, with its market value falling by 45.17 per cent, or $26.92bn, to $32.67bn.

Australia’s Macquarie Group lost $22.95bn, representing a 25.93 per cent decline, while Hong Kong Exchanges and Clearing shed $21.28bn, or 25.37 per cent, to reach $62.63bn.

Other companies in the financial sector that recorded substantial declines included Bank Rakyat Indonesia, which lost $12.16bn, and British data analytics company Experian, whose market value fell by $10.44bn.

Commenting on the findings, Data Researcher and Author at BestBrokers, Stanislava Savisheva, said the declines reflected changing investor expectations about the ability of financial technology companies to sustain their valuations.

She said the performance of PayPal demonstrated how quickly market expectations could shift when established payments platforms faced stronger competition and questions about their growth prospects.