The embedded finance industry in the region is expected to grow by 10.1% annually to reach US$35.20 billion in 2024.
The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 24.6% from 2024 to 2029. The region embedded finance revenues will increase from US$35.20 billion in 2024 to reach US$105.82 billion by 2029.
Embedded finance has seen significant growth in Europe over the past few months, driven by increasing consumer demand for seamless financial services integrated into everyday platforms. This trend is evident across various sectors, including retail and healthcare, as businesses directly leverage technology to offer services like payments, lending, and insurance within their ecosystems.
Looking ahead, the next few months are expected to bring further advancements, particularly in API technology, which will enhance the integration of financial services and expand access to previously underserved markets, thereby solidifying embedded finance as a standard in the financial landscape.
Flowpay's Seed Funding: The Czech-based embedded finance provider Flowpay raised €2.1 million in March 2024, aiming to enhance its technological capabilities and expand its services for small and medium-sized enterprises (SMEs) across Europe.
Finmid's Emergence from Stealth: Berlin-based Finmid raised €35 million in April 2024 to broaden its reach and enhance its product offerings, particularly in providing tailored financing solutions for various businesses, including restaurants and retailers.
Automakers Integrating Embedded Insurance: Companies like Ford and Jaguar Land Rover have begun integrating insurance policies directly with vehicle purchases or leases, enhancing customer satisfaction and streamlining the buying process.
2. Froda and Visma Finance: Also in April 2024, Froda joined forces with Visma Finance to launch a new product focused on invoice loans. This innovative offering allows businesses to automatically pay invoices rather than receiving direct payments, streamlining cash flow management for SMEs.
3. Amazon and ING: Amazon Germany has established a partnership with ING to offer preapproved loans to its SME sellers through a seller portal. This collaboration utilizes Amazon's data to facilitate quick credit decisions, enhancing the financial support available to sellers on the platform.
Ant International Acquires MultiSafepay: Ant International acquired the Amsterdam-based payment service provider MultiSafepay, integrating it into its Antom division. This move is designed to enhance payment solutions for SMEs, providing them with access to a wide array of international payment methods.
ThetaRay Acquires Screena: ThetaRay acquired the European screening company Screena, aiming to bolster its AI-driven solutions for detecting financial crime. This acquisition enhances ThetaRay's offerings for banks and fintechs, integrating advanced screening capabilities into its product suite.
Wolters Kluwer Acquires Isabel Group's Accountancy Portfolio: Wolters Kluwer is set to acquire the accountancy portfolio of Belgian FinTech Isabel Group for €325 million. This acquisition will expand Wolters Kluwer’s tax and accounting solutions, enhancing its service offerings in the European market.
Consumer Duty Regulation in the UK: The UK's Consumer Duty regulation has been highlighted as a significant development. This regulation mandates financial service providers to ensure that consumers understand their products. It emphasizes transparency in pricing and product features, aiming to enhance consumer protection and trust in embedded financial services.
Digital Currency Regulation: Discussions surrounding a potential digital European currency regulation are still in progress. Stakeholders are closely monitoring this development, as it may influence the embedded finance landscape by introducing new digital payment solutions and frameworks for financial transactions.
This report offers a comprehensive, data-centric analysis of the embedded finance industry. It covers lending, insurance, payment, wealth and asset-based finance sectors and provides a detailed breakdown of market opportunities and risks across various sectors. With over 75+ KPIs at the country level, this report ensures a thorough understanding of embedded finance market dynamics, market size, and forecast.
It breaks down market opportunities by type of business model, consumer segment, and distribution model. In addition, it provides detailed information across various segments in each sector of embedded finance. KPI revenue helps in getting an in-depth understanding of end market dynamics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.
The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 24.6% from 2024 to 2029. The region embedded finance revenues will increase from US$35.20 billion in 2024 to reach US$105.82 billion by 2029.
Embedded finance has seen significant growth in Europe over the past few months, driven by increasing consumer demand for seamless financial services integrated into everyday platforms. This trend is evident across various sectors, including retail and healthcare, as businesses directly leverage technology to offer services like payments, lending, and insurance within their ecosystems.
Looking ahead, the next few months are expected to bring further advancements, particularly in API technology, which will enhance the integration of financial services and expand access to previously underserved markets, thereby solidifying embedded finance as a standard in the financial landscape.
Key Developments in the Embedded Finance Sector
Product Launches and Innovations
YouLend's Partnership with Booking.com: YouLend has expanded its offerings by partnering with Booking.com to provide financing solutions for hotels, addressing their funding challenges and demonstrating the practical benefits of embedded finance in the hospitality sector.Flowpay's Seed Funding: The Czech-based embedded finance provider Flowpay raised €2.1 million in March 2024, aiming to enhance its technological capabilities and expand its services for small and medium-sized enterprises (SMEs) across Europe.
Finmid's Emergence from Stealth: Berlin-based Finmid raised €35 million in April 2024 to broaden its reach and enhance its product offerings, particularly in providing tailored financing solutions for various businesses, including restaurants and retailers.
Automakers Integrating Embedded Insurance: Companies like Ford and Jaguar Land Rover have begun integrating insurance policies directly with vehicle purchases or leases, enhancing customer satisfaction and streamlining the buying process.
Strategic Partnerships
1. Liberis and Shop Circle Capital: In April 2024, Liberis partnered with e-commerce software provider Shop Circle Capital to deliver financing solutions specifically aimed at merchants in the UK. This collaboration addresses the funding gap faced by small and medium-sized enterprises (SMEs) and aims to enhance their access to necessary financial resources.2. Froda and Visma Finance: Also in April 2024, Froda joined forces with Visma Finance to launch a new product focused on invoice loans. This innovative offering allows businesses to automatically pay invoices rather than receiving direct payments, streamlining cash flow management for SMEs.
3. Amazon and ING: Amazon Germany has established a partnership with ING to offer preapproved loans to its SME sellers through a seller portal. This collaboration utilizes Amazon's data to facilitate quick credit decisions, enhancing the financial support available to sellers on the platform.
Mergers and Acquisitions
UniCredit's Acquisition of Vodeno and Aion Bank: UniCredit signed a €370 million agreement to acquire Vodeno and Aion Bank, integrating their cloud-based Banking-as-a-Service (BaaS) platform. This acquisition aims to enhance UniCredit's capabilities to offer embedded financial solutions across Europe, catering to both financial and non-financial companies.Ant International Acquires MultiSafepay: Ant International acquired the Amsterdam-based payment service provider MultiSafepay, integrating it into its Antom division. This move is designed to enhance payment solutions for SMEs, providing them with access to a wide array of international payment methods.
ThetaRay Acquires Screena: ThetaRay acquired the European screening company Screena, aiming to bolster its AI-driven solutions for detecting financial crime. This acquisition enhances ThetaRay's offerings for banks and fintechs, integrating advanced screening capabilities into its product suite.
Wolters Kluwer Acquires Isabel Group's Accountancy Portfolio: Wolters Kluwer is set to acquire the accountancy portfolio of Belgian FinTech Isabel Group for €325 million. This acquisition will expand Wolters Kluwer’s tax and accounting solutions, enhancing its service offerings in the European market.
Regulatory Changes
EU Open Banking Regulations: The European Union has proposed a regulatory framework comprising three main components: regulations on instant payments, the European Digital Identity Framework, and the next evolution of the core open banking regulation (the Third Payments Services Directive). These regulations aim to facilitate seamless financial transactions and improve digital identity verification, which are crucial for the growth of embedded finance in Europe.Consumer Duty Regulation in the UK: The UK's Consumer Duty regulation has been highlighted as a significant development. This regulation mandates financial service providers to ensure that consumers understand their products. It emphasizes transparency in pricing and product features, aiming to enhance consumer protection and trust in embedded financial services.
Digital Currency Regulation: Discussions surrounding a potential digital European currency regulation are still in progress. Stakeholders are closely monitoring this development, as it may influence the embedded finance landscape by introducing new digital payment solutions and frameworks for financial transactions.
This report offers a comprehensive, data-centric analysis of the embedded finance industry. It covers lending, insurance, payment, wealth and asset-based finance sectors and provides a detailed breakdown of market opportunities and risks across various sectors. With over 75+ KPIs at the country level, this report ensures a thorough understanding of embedded finance market dynamics, market size, and forecast.
It breaks down market opportunities by type of business model, consumer segment, and distribution model. In addition, it provides detailed information across various segments in each sector of embedded finance. KPI revenue helps in getting an in-depth understanding of end market dynamics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.
Scope
This report provides regional insights, along with an in-depth data centric analysis of the Embedded Finance industry in the Asia Pacific, covering 50+ KPIs for each region and country (650+ charts and 500+ tables in all). Below is a summary of key market segments:Embedded Finance Market Size and Forecast
- Embedded Finance by Key Sectors
- Retail
- Logistics
- Telecommunications
- Manufacturing
- Consumer Health
- Others
- Embedded Finance by Business Model
- Platforms
- Enabler
- Regulatory Entity
- Embedded Finance by Distribution Model
- Own Platforms
- Third Party Platforms
Embedded Insurance Market Size and Forecast
- Embedded Insurance by Industry
- Embedded Insurance in Consumer Products
- Embedded Insurance in Travel & Hospitality
- Embedded Insurance in Automotive
- Embedded Insurance in Healthcare
- Embedded Insurance in Real Estate
- Embedded Insurance in Transport & Logistics
- Embedded Insurance in Others
- Embedded Insurance by Consumer Segments
- B2B
- B2C
- Embedded Insurance by Type of Offering
- Embedded Insurance in Product Segment
- Embedded Insurance in Service Segment
Embedded Insurance by Business Model
- Platforms
- Enabler
- Regulatory Entity
- Embedded Insurance by Distribution Model
- Own Platforms
- Third Party Platforms
- Embedded Insurance by Distribution Channel
- Embedded Sales
- Bancassurance
- Broker’s/IFA’s
- Tied Agents
- Embedded Insurance by Insurance Type
- Embedded Insurance in Life Segment
- Embedded Insurance in Non-Life Segment
- Embedded Insurance in Non-Life Segment
- Motor Vehicle
- Fire and Property
- Accident and Health
- General Liability
- Marine, Aviation and other Transport
- Other
Embedded Lending Market Size and Forecast
- Embedded Lending by Consumer Segments
- Business Lending
- Retail Lending
- Embedded Lending by B2B Sectors
- Embedded Lending in Retail & Consumer Goods
- Embedded Lending in IT & Software Services
- Embedded Lending in Media, Entertainment & Leisure
- Embedded Lending in Manufacturing & Distribution
- Embedded Lending in Real Estate
- Embedded Lending in Other
- Embedded Lending by B2C Sectors
- Embedded Lending in Retail Shopping
- Embedded Lending in Home Improvement
- Embedded Lending in Leisure & Entertainment
- Embedded Lending in Healthcare and Wellness
- Embedded Lending in Other
- Embedded Lending by Type
- BNPL Lending
- POS Lending
- Personal Loans
- Embedded Lending by Business Model
- Platforms
- Enabler
- Regulatory Entity
- Embedded Lending by Distribution Model
- Own Platforms
- Third Party Platforms
Embedded Payment Market Size and Forecast
- Embedded Payment by Consumer Segments
- B2B
- B2C
- Embedded Payment by End-Use Sector
- Embedded Payment in Retail & Consumer Goods
- Embedded Payment in Digital Products & Services
- Embedded Payment in Utility Bill Payment
- Embedded Payment in Travel & Hospitality
- Embedded Payment in Leisure & Entertainment
- Embedded Payment in Health & Wellness
- Embedded Payment in Office Supplies & Equipment
- Embedded Payment in Other
- Embedded Payment by Business Model
- Platforms
- Enabler
- Regulatory Entity
- Embedded Payment by Distribution Model
- Own Platforms
- Third Party Platforms
Embedded Wealth Management Market Size and Forecast
Asset Based Finance Management Industry Market Size and Forecast
- Asset Based Finance by Type of Asset
- Hard Assets
- Soft Assets
- Asset Based Finance by End Users
- SME’s
- Large Enterprises
Reasons to buy
- In-depth Understanding of Embedded Finance Market Dynamics: Understand market opportunities and key trends along with forecast (2020-2029).
- Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
- Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate embedded finance strategy; assess market specific key trends, drivers, and risks in the industry.
- Get Sector Insights: Drawing from proprietary survey results, this report identifies opportunities across embedded lending, embedded insurance, embedded finance, and embedded wealth sectors.
- Get insights at segment level, by the distribution model and by business model in key embedded finance segments
- Insights into the asset based finance market size and by type of assets, by end users.
Table of Contents
All global, regional, and country reports mentioned above will have the following tables of contents:6. Embedded Insurance Industry Revenue Trend Analysis, 2020-202915. Embedded Lending Industry Market Size and Forecast, 2020-202922. Embedded Payment Industry Market Size and Forecast, 2020-202927. Embedded Wealth Management Industry Market Size and Forecast, 2020-202928. Asset Based Finance Management Industry Market Size and Forecast, 2020-2029
1. About this Report
2. Embedded Finance Industry Market Size and Forecast
3. Embedded Finance Industry Market Size and Forecast by End Use Industry
4. Embedded Finance Industry Market Size and Forecast by Business Model
5. Embedded Finance Industry Market Size and Forecast by Distribution Model
7. Embedded Insurance Industry Market Size and Forecast by End Use Industry
8. Embedded Insurance Industry Market Size and Forecast by Consumer Segment
9. Embedded Insurance Industry Market Size and Forecast by Type of Offering
10. Embedded Insurance Industry Market Size and Forecast by Business Model
11. Embedded Insurance Industry Market Size and Forecast by Distribution Model
12. Embedded Insurance Industry Market Size and Forecast by Distribution Channel
13. Embedded Insurance Industry Market Size and Forecast by Type of Insurance
14. Embedded Insurance Industry Market Size and Forecast by Non-Life Insurance
16. Embedded Lending Industry Market Size and Forecast by Consumer Segment
17. Embedded Lending Industry Market Size and Forecast by Business to Business (B2B) Sectors
18. Embedded Lending Industry Market Size and Forecast by Business to Consumer (B2C) Sectors
19. Embedded Lending Industry Market Size and Forecast by Type of Lending
20. Embedded Lending Industry Market Size and Forecast by Business Model
21. Embedded Lending Industry Market Size and Forecast by Distribution Model
23. Embedded Payment Industry Market Size and Forecast by End Use Segment
24. Embedded Payment Industry Market Size and Forecast by Consumer Segment
25. Embedded Payment Industry Market Size and Forecast by Business Model
26. Embedded Payment Industry Market Size and Forecast by Distribution Model
29. Asset Based Finance Industry Market Size and Forecast by Type of Assets
30. Asset Based Finance Industry Market Size and Forecast by End User
31. Further Reading
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 2125 |
| Published | September 2024 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value ( USD | $ 35.2 Billion |
| Forecasted Market Value ( USD | $ 105.8 Billion |
| Compound Annual Growth Rate | 24.6% |
| Regions Covered | Europe |
