Embedded Finance Market Size, Share, Opportunities, And Trends By Type (Embedded Payment, Embedded Insurance, Embedded Investment, Embedded Lending, Embedded Banking), By Business Model (B2B, B2C, B2B2B, B2B2C), By End Users (Retail, Healthcare, Logistics, Manufacturing, Travel & Entertainment, Others), And By Geography - Forecasts From 2025 To 2030

The embedded finance market is expected to grow at a compound annual growth rate (CAGR) of 36.41% from US$146.171 billion in 2025 to US$690.386 billion in 2030.

The market growth is mainly attributed to the increasing popularity of online payment services, i.e., the growing demand for digital and convenient financial services is anticipated to drive the overall market growth. Furthermore, technological advancement, which provides seamless integration between non-financial and financial platforms, is making businesses secure to incorporate payment more conveniently. Further, as per European Central Bank payment statistics, in the first half of 2023, e-money transactions in Europe increased by 6.9% to 4.4 billion, with a 7.0% increase in value to €0.2 billion. E-money with card transactions accounted for 9% of transactions, while e-money with the account was 91% of transactions. Additionally, non-cash payment transactions increased by 10.1% to 67.0 billion in the first half of 2023.

The rising willingness of consumers to utilize integrated financial services and the rising adoption of financial services online platforms like e-commerce websites and safe online payments are also resulting in the embedded finance market growth in the future. For instance, in April 2024, Finzly launched Account Galaxy™, a groundbreaking solution that empowers banks of all sizes to participate in the emerging embedded banking segment, overcoming limited participation due to the advanced technologies required.

In March 2023, SAP Fioneer launched its first B2B embedded finance platform, "Fioneer Embedded Finance as a Service," which allowed Financial Service Institutions (FSIs) to connect to SAP Enterprise resource planning processes, enabling the development of innovative embedded finance solutions.

What are the drivers of the embedded finance market?

• The growing digitalization of business is projected to propel the embedded finance market expansion.

One of the prime reasons supporting the market growth is the growing inclination of businesses towards digitalization and the rising popularity of embedded finance services in every sector. Consumers around the globe are switching toward e-commerce, which is expected to augment the market growth during the forecast period. Moreover, as per the US Census Bureau of the Department of Commerce data of e-commerce, retail sales revenue in the U.S. increased from US$2,71,867 million in the first quarter of 2023 to US$2,85,224 million in the fourth quarter of 2023. Additionally, In Q4 2023, e-commerce sales accounted for 15.6% of total sales.

Moreover, increasing digitalization has given acceptance to various services like consumer lending and UPI payments and MasterCard payment acceptance has also seen a massive rise in the business sectors. For instance, in January 2024, Cybrid, a provider of embedded finance API solutions, expanded its platform to include B2B payment capabilities. Moreover, in May 2022, Synctera, a leading FinTech banking provider, partnered with Mastercard to integrate its open banking platform, provided by Mastercard's subsidiary Finicity, to offer account verification solutions for Synctera-powered FinTechs.

• The increasing demand for embedded insurance is anticipated to fuel the embedded finance market expansion.

The growing trend of banking goods & services at the point of sale and the growing demand from insurance consumers for solutions beyond traditional insurance bundling are expected to drive the demand for embedded insurance. Additionally, embedded insurance integrates the relevant risk with the consumer purchase owing to the point of sale. Such insurance is posed to show positive growth in major sectors such as automotive and retail.

According to Accenture’s “Global Insurance Consumer Study – 2023” report, the percentage share of consumers opting to buy insurance from car dealers increased from 32% in 2018 to 42% in 2023. The same study also highlighted that 75% of consumers are interested in complete car packages inclusive of insurance.

Moreover, embedded car insurance provides the opportunity of creating alliances with non-financial service partners, which is further expected to improve their demand in various other sectors such as travel & entertainment. Booming consumer buying habits and insurer data capabilities are the primary market forces driving embedded insurance distribution.

Embedded insurance holds huge potential in the coming years, and to optimize their growing consumer demand in major sectors, various companies embedded insurance services are undertaking strategic collaborations and new launches, which are expected to provide new growth prospects. For instance, in December 2023, Qover announced its partnership with luxury electric vehicle brand ZEEKR in which the former would provide its embedded insurance solutions inclusive of two types of motor coverage, i.e., “Motor Own Damage (MOD)”, and “Motor Third Party Liability (MTPL)”. The insurance services were launched in the Netherlands. 

What are the key geographical trends shaping the embedded finance market?

Based on geography, the embedded finance market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The embedded finance market in India is affected by various factors, such as the growth of extensive mobile and internet connectivity in the country coupled with a robust tech ecosystem. For instance- as per Internet in India Report 2023, the active internet users in the country have crossed the 800 million marks. Moreover, India is a fast-rising country with vibrant technological ecosystems; thereby, the penetration of embedded finance services is anticipated to grow at a significant pace till the forecast period. For instance- as per the IBEF, the embedded finance businesses in the country are expected to grow at a CAGR of 45% in the coming years.

In addition, the rapid growth of e-commerce platforms in developing economies such as India provides further impetus to embedded finance services. This is because online retailers are integrating various financial services, such as BNPL solutions, digital wallets, and instant loans, directly into their platforms to provide the utmost ease to users across the country.

Besides that, as per the estimates from PIB, the UPI transactions have multifold in the country, from 92 crore in the year 2017-18 to 8,375 crore in 2022-23, thereby growing at a CAGR of 147% in terms of volume. This represents lucrative opportunities as the larger adoption of UPI payments in India can act as a major catalyst for propelling the expansion of the embedded finance market.

The major collaboration among key players coupled with mergers and acquisitions in the market spurs innovation, broadens consumer options, and eventually boosts market growth and attracts new customers. Successful launches may improve market share, strengthen retailer relationships, and create new market segments, all while boosting total sales and industry progress.

For instance, in 2022, SBM Bank India announced its collaboration with Open Financial Technologies Pvt Ltd for the introduction of Zwitch. This is Asia’s first end-to-end embedded finance platform that provides No-Code, Low-Code Solutions, and API-based solutions for both fintech and non-fintech.

Additionally, in 2023, MyShubhLife, one of the largest embedded finance platforms in India, announced its partnership with Payworld, which is a fintech platform targeting retail merchants across the country. MyShubhLife, with the help of its NBFC Ekagrata, will provide retailers of Payworld with easy access to credit to fulfill all their working capital needs.

Recent developments in the embedded finance market:

• February 2024- Alloy launched Alloy for Embedded Finance, a product designed to help sponsor banks, BaaS providers, and fintech partners manage identity risk and comply with regulatory requirements while maintaining user experiences for fintechs.

The embedded finance market is analyzed into the following segments:

• By Type
  • Embedded Payment
  • Embedded Insurance
  • Embedded Investment
  • Embedded Lending
  • Embedded Banking 
• By Business Model
  • B2B
  • B2C
  • B2B2B
  • B2B2C
• By End-Users
  • Retail
  • Healthcare
  • Logistics
  • Manufacturing
  • Travel & Entertainment
  • Others
• By Geography
  • North America
    • United States
    • Canada              
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. EMBEDDED FINANCE MARKET BY TYPE 

5.1. Introduction

5.2. Embedded Payment

5.3. Embedded Insurance

5.4. Embedded Investment

5.5. Embedded Lending

5.6. Embedded Banking

6. EMBEDDED FINANCE MARKET BY BUSINESS MODEL

6.1. Introduction

6.2. B2B

6.3. B2C

6.4. B2B2B

6.5. B2B2C

7. EMBEDDED FINANCE MARKET BY END USERS 

7.1. Introduction

7.2. Retail

7.3. Healthcare

7.4. Logistics

7.5. Manufacturing

7.6. Travel & Entertainment

7.7. Others

8. EMBEDDED FINANCE MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Type 

8.2.2. By Business Model

8.2.3. By End Users

8.2.4. By Country

8.2.4.1. United States

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Type 

8.3.2. By Business Model

8.3.3. By End Users

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Type 

8.4.2. By Business Model

8.4.3. By End Users

8.4.4. By Country

8.4.4.1. United Kingdom

8.4.4.2. Germany

8.4.4.3. France

8.4.4.4. Spain

8.4.4.5. Others

8.5. Middle East and Africa

8.5.1. By Type 

8.5.2. By Business Model

8.5.3. By End Users

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. UAE

8.5.4.3. Israel

8.5.4.4. Others

8.6. Asia Pacific

8.6.1. By Type 

8.6.2. By Business Model

8.6.3. By End Users

8.6.4. By Country

8.6.4.1. Japan

8.6.4.2. China

8.6.4.3. India

8.6.4.4. South Korea

8.6.4.5. Indonesia

8.6.4.6. Thailand

8.6.4.7. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Stripe, Inc.

10.2. FIS (PAYRIX)

10.3. Cybrid Technology Inc.

10.4. Walnut Insurance Inc

10.5. Lendflow

10.6. Finastra

10.7. Zopa Bank Limited

10.8. Fortis Payment Systems, LLC

10.9. Transcard Payments

10.10. Fluenccy Pty Limited

10.11. Qover

Stripe, Inc.

FIS (PAYRIX) 

Cybrid Technology Inc.

Walnut Insurance Inc

Lendflow

Finastra

Zopa Bank Limited

Fortis Payment Systems, LLC

Transcard Payments

Fluenccy Pty Limited

Qover