Financial technology companies have been caught in the whirlwind of US President Donald Trump’s sweeping tariffs, as investors in the likes of digital payment apps, fear worsening consumer finances.
The fintech sector in Ireland remains resilient, however, according to Fintech & Payments Association of Ireland.
Chair of FPAI, John O’Beirne, who is also Executive Director of Squareup International, says the underlying dynamics remains positive.
The sector has grown exponentially from 14 to 50 regulated firms since 2018.
Ireland is seen as an attractive base for fintech companies because firms can establish and scale their operations here. Mr O’Beirne told Morning Ireland that 70% of fintech companies here say they get good availabillity and practical financial supports coming from a whole range of providers including IDA Ireland, Chambers of Commerce, and Enterprise Ireland.
“The country is seen as quite a pro business environment,” Mr O’Beirne said.
Fintechs will not be impacted directly by US tariffs but will be affected indirectly if consumer spending cools. “Underlying consumer and business spending is absolutely critical to those firms, but it is one portion as it continues to evolve and adapt,” he said.
A survey conducted by the FPAI at the end of last year, showed 91% of fintech firms based here, planned to hire. The economic landscape has changed significantly since the survey was conducted, however.
“There is a risk to all sectors and fintech is not going to be separate to that, and I think when you step back from it, investors generally dislike uncertainty so I would anticipate that there will be somewhat of a slowdown in terms of those hiring trends.”
