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 2024 To 2029

The embedded finance market is expected to grow at a compound annual growth rate (CAGR) of 36.25% from US$57.435 billion in 2022 to US$500.659 billion in 2029.

This 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 growth of 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.

Growing digitalization of businessess is anticipated to propel market growth.

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 of the market 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 embedded insurance segment is projected to grow

The growing trend of banking goods & services at the point of sale and the growing demand from insurance consumers for solutions that are beyond traditional insurance bundling are is 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.

The market is projected to grow in the APAC region.

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 mark.  Moreover, India is being 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 th provide retailers of Payworld with easy access to the credit to fulfill all their working capital needs .

Key Market Developments:

• 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.
• In 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
• 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. 

Key Players:

• Stripes provides a comprehensive range of embedded financial services that provide more flexibility to consumers in managing their money.
• Cybrid Inc. provides a single orchestration platform consolidating payment operations.
• Walnut Insurance offers revenue-generating insurance coverage with easy-to-deploy integrated options.

Segmentation:

• 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
    • USA
    • Canada              
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • 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. The 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

5.2.1. Market Trends and Opportunities

5.2.2. Growth Prospects

5.2.3. Geographic Lucrativeness

5.3. Embedded Insurance

5.3.1. Market Trends and Opportunities

5.3.2. Growth Prospects

5.3.3. Geographic Lucrativeness

5.4. Embedded Investment

5.4.1. Market Trends and Opportunities

5.4.2. Growth Prospects

5.4.3. Geographic Lucrativeness

5.5. Embedded Lending

5.5.1. Market Trends and Opportunities

5.5.2. Growth Prospects

5.5.3. Geographic Lucrativeness

5.6. Embedded Banking

5.6.1. Market Trends and Opportunities

5.6.2. Growth Prospects

5.6.3. Geographic Lucrativeness

6. EMBEDDED FINANCE MARKET BY BUSINESS MODEL

6.1. Introduction

6.2. B2B

6.2.1. Market Trends and Opportunities

6.2.2. Growth Prospects

6.2.3. Geographic Lucrativeness

6.3. B2C

6.3.1. Market Trends and Opportunities

6.3.2. Growth Prospects

6.3.3. Geographic Lucrativeness

6.4. B2B2B

6.4.1. Market Trends and Opportunities

6.4.2. Growth Prospects

6.4.3. Geographic Lucrativeness

6.5. B2B2C

6.5.1. Market Trends and Opportunities

6.5.2. Growth Prospects

6.5.3. Geographic Lucrativeness

7. EMBEDDED FINANCE MARKET BY END USERS 

7.1. Introduction

7.1. Retail

7.1.1. Market Trends and Opportunities

7.1.2. Growth Prospects

7.1.3. Geographic Lucrativeness

7.2. Healthcare

7.2.1. Market Trends and Opportunities

7.2.2. Growth Prospects

7.2.3. Geographic Lucrativeness

7.3. Logistics

7.3.1. Market Trends and Opportunities

7.3.2. Growth Prospects

7.3.3. Geographic Lucrativeness

7.4. Manufacturing

7.4.1. Market Trends and Opportunities

7.4.2. Growth Prospects

7.4.3. Geographic Lucrativeness

7.5. Travel & Entertainment

7.5.1. Market Trends and Opportunities

7.5.2. Growth Prospects

7.5.3. Geographic Lucrativeness

7.6. Others

7.6.1. Market Trends and Opportunities

7.6.2. Growth Prospects

7.6.3. Geographic Lucrativeness

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

8.2.4.1.1. Market Trends and Opportunities

8.2.4.1.2. Growth Prospects

8.2.4.2. Canada

8.2.4.2.1. Market Trends and Opportunities

8.2.4.2.2. Growth Prospects

8.2.4.3. Mexico

8.2.4.3.1. Market Trends and Opportunities

8.2.4.3.2. Growth Prospects

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

8.3.4.1.1. Market Trends and Opportunities

8.3.4.1.2. Growth Prospects

8.3.4.2. Argentina

8.3.4.2.1. Market Trends and Opportunities

8.3.4.2.2. Growth Prospects

8.3.4.3. Others

8.3.4.3.1. Market Trends and Opportunities

8.3.4.3.2. Growth Prospects

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

8.4.4.1.1. Market Trends and Opportunities

8.4.4.1.2. Growth Prospects

8.4.4.2. Germany

8.4.4.2.1. Market Trends and Opportunities

8.4.4.2.2. Growth Prospects

8.4.4.3. France

8.4.4.3.1. Market Trends and Opportunities

8.4.4.3.2. Growth Prospects

8.4.4.4. Spain

8.4.4.4.1. Market Trends and Opportunities

8.4.4.4.2. Growth Prospects

8.4.4.5. Others

8.4.4.5.1. Market Trends and Opportunities

8.4.4.5.2. Growth Prospects

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

8.5.4.1.1. Market Trends and Opportunities

8.5.4.1.2. Growth Prospects

8.5.4.2. UAE

8.5.4.2.1. Market Trends and Opportunities

8.5.4.2.2. Growth Prospects

8.5.4.3. Israel

8.5.4.3.1. Market Trends and Opportunities

8.5.4.3.2. Growth Prospects

8.5.4.4. Others

8.5.4.4.1. Market Trends and Opportunities

8.5.4.4.2. Growth Prospects

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

8.6.4.1.1. Market Trends and Opportunities

8.6.4.1.2. Growth Prospects

8.6.4.2. China

8.6.4.2.1. Market Trends and Opportunities

8.6.4.2.2. Growth Prospects

8.6.4.3. India

8.6.4.3.1. Market Trends and Opportunities

8.6.4.3.2. Growth Prospects

8.6.4.4. South Korea

8.6.4.4.1. Market Trends and Opportunities

8.6.4.4.2. Growth Prospects

8.6.4.5. Indonesia

8.6.4.5.1. Market Trends and Opportunities

8.6.4.5.2. Growth Prospects

8.6.4.6. Thailand

8.6.4.6.1. Market Trends and Opportunities

8.6.4.6.2. Growth Prospects

8.6.4.7. Others

8.6.4.7.1. Market Trends and Opportunities

8.6.4.7.2. Growth Prospects

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