Analysis Report on R&D Investment Ratio of Fintech Companies

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Based on the latest financial data and market research reports, the R&D investment of major global fintech companies in 2024 shows significant differentiation characteristics [0][1][2]:

Represented by Revolut and Nubank, digital banks have the highest R&D investment ratios, reaching 45% and 25% respectively. This is mainly due to the following reasons [1][2]:

• Digital banks need to build a complete banking infrastructure system
• Must comply with regulatory and compliance technical requirements in various regions
• Need to continuously iterate mobile user experience
• Risk control models and credit assessment algorithms need continuous optimization

R&D investment in the payment sector shows polarization:

• Stripe
  , as a payment infrastructure provider, has an R&D investment ratio of as high as 38%, mainly invested in machine learning, fraud detection systems, and API infrastructure construction [2]
• PayPal, a traditional payment giant
  , has an R&D investment ratio of 9.4% (USD 2.979 billion in R&D investment in 2024), showing a year-on-year downward trend, dropping from 11.7% in 2020 to 9.4% in 2024 [0]

Chinese fintech companies have relatively low R&D investment ratios [1]:

• Ant Group: approximately 7.6%
• LianLian Digital: approximately 6.3%

This may be related to the following factors:

• Large business scale with relatively high R&D efficiency
• Mature technical infrastructure has been established
• Focus has shifted to business expansion and compliance construction

According to the 2025 report by iResearch [1], the cutting-edge technology investment of Chinese financial institutions shows the following characteristics:

It is estimated that by 2029, the total investment in cutting-edge technologies by Chinese financial institutions will reach

• Cloud platform investment: approximately RMB 111.9 billion
• Big data investment: approximately RMB 36.9 billion
• AI investment: approximately RMB 16.2 billion

As can be seen from PayPal’s financial report data [0]:

• The absolute amount of R&D investment remains basically flat, staying around USD 3 billion
• Revenue growth has led to a year-on-year decline in the R&D investment ratio
• PayPal’s R&D focus has shifted from basic technology to product optimization and user experience improvement

• Artificial Intelligence Technology
  : According to a BCG report, AI-driven product innovation has become a core competitive barrier [2]
• Compliance Technology
  : Demand for Regulatory Technology (RegTech) has surged
• Security and Risk Control
  : Fraud methods are becoming increasingly complex, leading to increased investment in anti-fraud technology
• Cross-border Payment
  : Demand for R&D in real-time payment and stablecoin infrastructure is rising

• Digital Banks
  : Highest R&D investment (25%-45%), need to build a complete banking technology stack
• Payment Infrastructure
  : Relatively high R&D investment (12%-38%), focusing on APIs and network effects
• Integrated Fintech
  : Relatively low R&D investment (6%-10%), focusing on business integration

According to the 2025 Asia Fintech Survey by EY [3], the main investment needs of fintech institutions in the next 12 months are:

1. Artificial Intelligence and Machine Learning
   (58.9%)
2. Cybersecurity
   (46.6%)
3. Big Data and Data Analytics
   (43.8%)
4. Cloud Computing
   (39.7%)

1. Digital banks have the highest R&D investment
   : Revolut (45%) and Nubank (25%) represent the highest R&D investment level in the industry
2. Payment infrastructure companies show differentiation in investment
   : Stripe (38%) is much higher than PayPal (9.4%)
3. Chinese fintech companies are relatively conservative
   : Ant Group (7.6%) and LianLian Digital (6.3%)
4. AI and cloud platforms are future growth drivers
   : It is predicted that by 2029, AI investment by Chinese financial institutions will grow to RMB 16.2 billion

Differences in R&D investment reflect the technical dependence and competitive strategies of different business models. Digital banks need higher R&D investment to build differentiated competitive advantages.

[0] PayPal Holdings, Inc. 2024 Annual Report (Form 10-K), SEC Filing, February 4, 2025. https://www.sec.gov/Archives/edgar/data/1633917/000163391725000019/pypl-20241231.htm

[1] iResearch. “2025 Insight Report on the Development of China’s Fintech Industry”, April 2025. https://pdf.dfcfw.com/pdf/H3_AP202504011649888138_1.pdf

[2] Boston Consulting Group & QED Investors. “Fintech’s Next Chapter: Scaled Winners and Emerging Disruptors”, May 2025. https://web-assets.bcg.com/e8/4d/5eeb786b4aefbf6c7270ed4d0afe/fintechs-next-chapter-may-2025.pdf

[3] EY. “2025 Asia Fintech Research Report: Turning Challenges into Growth”, 2025. https://www.ey.com/content/dam/ey-unified-site/ey-com/zh-tw/insights/financial-services/documents/ey-2025-asia-fintech-research-report.pdf