Embedded Finance Market 2024

The global embedded finance payment volume is projected to surpass EUR 6 trillion by 2025

AI is playing a major role in enhancing customer experiences within the embedded finance sector

The rapid adoption of embedded finance signifies a global shift in financial service access. Despite its promising trajectory, the sector faces uncertainty, such as risks in deviating from established models, self-competition concerns, and collaboration complexities. These challenges, however, offer innovation opportunities, with technology, especially Artificial Intelligence (AI), playing a crucial role in shaping embedded finance's future.

AI enhances customer experiences, facilitates robust risk management, and ensures effective fraud detection. While major global platforms leverage AI to streamline operations, its integration poses challenges in transparency, security, and risks across legal, operational, and reputational aspects.

Data security emerges as a top concern in Europe in embedded finance

The United States leads the global revenue race in embedded finance, generating over EUR 20 billion in 2022, with the global market expected to exceed EUR 6 trillion in payments by 2025. Moreover, fintech platforms envision a non-financial future, with approximately three-quarters expecting most financial products to be offered outside traditional channels. Consumer retail takes the lead in sector support at 95%, followed by telecom and healthcare.

Regionally, Europe anticipates significant growth, targeting more than EUR 150 billion by 2028, while the Asia-Pacific region is expected to generate more than double that number by 2024. Notably, in embedded finance, data security emerged as a top concern in Europe as of April 2023.

Key questions answered in the report:

What are the main areas of embedded finance globally?
What is the projected global payment volume in the embedded finance market by 2025?
How is AI utilized in embedded finance, and what benefits and risks does it pose?
What challenges does embedded finance face in the future?
What is the projected market size of embedded finance in Europe by 2028?

1. Key Takeaways2. Management Summary

3. Global

Overview of Embedded Finance Ecosystem, January 2024
Overview of AI Use in the Embedded Finance Ecosystem, January 2024
Embedded Finance Revenue, by Country, in USD billion, 2022
Embedded Finance Metrics, in USD trillion, 2025f
Share of Fintechs Who Believe That The Majority of Financial Products Will Be Offered Via Non-Financial Platforms in the Future, in %, 2023e
Main Areas of Focus of Embedded Finance, in % of Leading Financial Technology Businesses, 2023e
Top Segments Supported by Embedded Finance, in % of Leading Financial Technology Businesses, 2023e
Share of Leading Financial Technology Businesses Who Primarily Support B2B2C Models in Consumer Retail, in %, 2023e
Share of Leading Financial Technology Businesses Who Noted That The Goal of Embedded Finance Is Centered Around Enabling Seamless Financial Offerings, in %, 2023e
Aspects That Make The Embedded Finance Proposition Work, in % of Financial Technology Businesses, 2023e
Top Strategic Priorities in The Next 5 Years, in % of Banking Executives, 2023e
Top Trends That Banking Executives Believe Will Have the Biggest Impact on Banks in the Next 5 Years, in %, 2023e
Breakdown of Top Ways in Which Banking Executives Expect Their Business Model to Evolve in the Next 1-2 Years, in %, 2023e
Share of Banking Executives Who Agree That Banking Will Become “Embedded” in Consumers’ Lives And Businesses’ Value Chains, in %, 2023e
Share of Banks That Rank Embedded Finance as an Important Revenue Stream, in %, 2023e
Providers of Payment Services Used by Organization, in % of Commercial Payment Clients, August 2023
Providers of Embedded Financing/BNPL Services to Organization, in % of Commercial Payment Clients, August 2023
Banks’ Top 3 Priorities to Transform Commercial Payments in The Following 2-3 Years, in % of Banking and Payments Executives, August 2023
Share of Banks That Are Prioritizing Investment in Embedded Payments Solutions, in %, August 2023
Share of Consumers Agreeing With The Following Statements Related to Digital and Mobile Wallets, in %, April 2023

4. USA

Share of Mobile Wallet Users Who Have Made a Purchase Via a Retailer’s Embedded Mobile App, in %, 2023e
Share of Respondents Who Would Consider Getting Financial Services From a Non-Financial Provider, in %, 2023e
Share of Respondents Who Would Not Consider Banking With a Non-Financial Provider, in %, March 2023

5. Europe

5.1. Regional

Embedded Finance Market Size, in EUR billion, 2023e & 2028f
Top Concerns When It Comes to Embedded Financial Services and Products, in % of Respondents, April 2023
Breakdown of Monthly Shopper Engagement Increase With Brands Due to Embedded Finance, in %, May 2023
Behavior Based On the Cost of Living, in % of Respondents, May 2023
Commercial and Loyalty Benefits of Embedded Finance From Brands, in % of Respondents, May 2023
Top Use Cases of BaaS in Retail in the Next 1-3 Years, in % of Executives, 2023e
Top Use Cases of BaaS in Business in the Next 1-3 Years, in % of Executives, 2023e
Biggest Opportunities for BaaS Providers, in %, 2023e

5.2. UK

Share of Mobile Wallet Users Who Have Made a Purchase Via a Retailer’s Embedded Mobile App in the Past Year, in %, 2023e
Share of SMEs That Plan to Use Embedded Financial Service Products More in The Next 12 Months, in %, March 2023
Biggest Benefits of Embedded Finance Use, in % of SMEs, March 2023

6. Asia-Pacific

6.1. Regional

Embedded Finance Market Size, in USD billion, 2022 & 2024f

6.2. Australia

Share of Mobile Wallet Users Who Have Made a Purchase Via a Retailer’s Embedded Mobile App in The Past Year, in %, 2023e
BNPL Sales, in AUD billion, FY 2021 & FY 2022

6.3. New Zealand

BNPL Transaction Value, in USD billion, 2023e & 2026f

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AI is playing a major role in enhancing customer experiences within the embedded finance sector

Data security emerges as a top concern in Europe in embedded finance

Key questions answered in the report:

Table of Contents

Samples

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About the Embedded Finance Market