Latin America Embedded Finance Business and Investment Opportunities Databook - 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q2 2024 Update

The embedded finance industry in the region is expected to grow by 14.7% annually to reach US$9.81 billion in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 28.6% from 2024 to 2029. The region embedded finance revenues will increase from US$9.81 billion in 2024 to reach US$34.50 billion by 2029.

Embedded finance in Latin America is rapidly advancing, driven by innovations from key players like Mercado Pago, Nubank, and Clip, alongside strategic partnerships and evolving regulatory frameworks. The sector is set for further growth with enhanced API technology, broader financial service integration, and regulatory support paving the way for expanded access and seamless financial solutions.

Growth in the Embedded Finance Sector

Over the past few months, embedded finance has experienced rapid growth in Latin America. This growth is driven by the increasing demand for seamless financial services integrated into various platforms across e-commerce, healthcare, and the gig economy.

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, solidifying embedded finance as a standard in the Latin American financial landscape.

Key Developments in the Embedded Finance Sector

Product Launches and Innovations

Mercado Pago's Enhanced Services: Mercado Pago, a leading digital wallet and payment platform, has expanded its offerings to include integrated lending solutions for small businesses, allowing them to access credit directly through the platform. This enhancement aims to streamline financial access for merchants using Mercado Libre's e-commerce services.

Nubank's New Credit Features: Nubank introduced new credit features that allow users to manage their finances more effectively within the app. These features include personalized credit limits and instant loan approvals, making it easier for consumers to access financial products without leaving the platform.

Clip's Payment Solutions for SMEs: The Mexican fintech Clip launched new payment solutions designed specifically for small and medium-sized enterprises (SMEs). These solutions integrate payment processing directly into business management tools, facilitating smoother transactions and financial management for business owners.

Strategic Partnerships

Mercado Pago and Mercado Libre: Mercado Pago, the digital wallet and payment platform, has expanded its partnership with Mercado Libre, Latin America's leading e-commerce ecosystem. This collaboration allows merchants using Mercado Libre's services to access integrated lending solutions directly through the platform, streamlining financial access for small businesses.

Clip and Visa: The Mexican fintech Clip has partnered with Visa to enhance its payment solutions for small and medium-sized enterprises (SMEs). This collaboration aims to integrate payment processing directly into business management tools, facilitating smoother transactions and financial management for business owners.

Rappi and Bancolombia: Colombian delivery app Rappi has partnered with Bancolombia, the country's largest bank, to offer embedded financial services within its platform. This partnership allows Rappi users to access banking services, including payments and lending, without leaving the app.

Regulatory Changes

1. Open Finance Initiatives: Various countries in Latin America, including Colombia and Mexico, have made strides toward implementing open finance frameworks. Colombia's 2022 open finance decree focuses on Payment Initiation Services (PIS) and plans to introduce Account Information Services (AIS) by 2025. This regulatory environment is designed to enhance competition and innovation in financial services, facilitating the integration of embedded finance solutions.

2. Fintech Regulations in Chile: Chile is advancing its "Fintech Law," which aims to create a comprehensive regulatory framework for financial technology services, including embedded finance. The supporting regulations are expected to be released in mid-2024, promoting a more structured environment for fintech operations and enhancing consumer protection.

3. Real-Time Payment Systems: Countries like Colombia are working on improving their real-time payment systems, which are crucial for the effective functioning of embedded finance. These systems support low-value account-to-account payments and are essential for facilitating quick and seamless transactions within embedded finance frameworks.

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.