The embedded finance industry in the country is expected to grow by 10.8% annually to reach US$30.82 billion in 2024.
The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 23.8% from 2024 to 2029. The country's embedded finance revenues will increase from US$30.82 billion in 2024 to reach US$89.59 billion by 2029.
The embedded finance sector in the USA is rapidly evolving, driven by innovations and strategic partnerships across digital payments, lending, and insurance. Key developments include enhanced APIs, new payment solutions, and strategic collaborations. Regulatory updates are also reshaping the landscape, introducing new compliance requirements and increased scrutiny. This dynamic environment reflects a broader shift toward integrated financial services, enhancing accessibility and user experience.
Growth in the Embedded Finance Sector
In recent months, the embedded finance sector in the USA has seen significant growth, especially in digital payments, lending solutions, and insurance integration, driven by increased technology adoption and the shift toward online financial services.
Over the next few months, we expect to see more advancements in financial products and services. Many companies will integrate embedded finance offerings to improve customer experience and accessibility. This will lead to significant growth in the embedded finance market in the USA, reflecting a broader transformation in how consumers and businesses use financial services.
Key Developments in the Embedded Finance Sector
Product Launches and Innovations
Plaid's Enhanced API Offerings: Plaid has expanded its suite of APIs to facilitate easier integration of financial services into non-financial platforms. This enhancement allows companies to offer a broader range of financial products, including payments and loans, directly within their existing applications, thereby improving user experience and engagement.
Shopify's Payment Solutions: Shopify has introduced new embedded finance features that streamline the payment process for merchants. Their updates include enhanced "buy now, pay later" options, which have been shown to increase conversion rates and average order values significantly. This move reflects the increasing consumer demand for integrated financial solutions in online shopping.
Nium's Global Expansion: Nium has introduced embedded finance solutions, allowing businesses to offer financial services within their platforms, such as digital wallets and payment processing. This caters to the increasing demand for seamless financial transactions in various sectors.
Zelle's Integration with More Apps: Zelle has expanded partnerships to include more financial apps, enabling users to send and receive money within their favorite apps. This aims to enhance convenience in peer-to-peer transactions, tapping into the trend of embedded payment solutions. Chime's Banking Features: Chime has rolled out new features that enable businesses to embed banking services directly into their platforms. This includes functionalities like instant account creation and real-time transaction notifications, which are designed to enhance customer engagement and retention.
Chime's Banking Features: Chime has launched new features for businesses to embed banking services into their platforms, including instant account creation and real-time transaction notifications to boost customer engagement and retention.
Strategic Partnerships
Uber and Evolve Bank & Trust: Uber partnered with Evolve Bank & Trust and Branch to launch a debit Mastercard. This card helps Uber drivers to receive payments faster and earn rewards on fuel purchases, enhancing the financial services available to gig economy workers.
Toast and WebBank: Toast, the restaurant management software platform, collaborated with WebBank to offer merchant cash advances. This partnership provides short-term liquidity to restaurant owners, leveraging card receivables data to inform lending decisions.
Tesla and Origence: Tesla partnered with Origence to provide financing options for electric vehicle buyers through credit unions. This initiative aims to streamline the financing process for consumers purchasing Tesla vehicles.
BNY Mellon and Microsoft: BNY Mellon launched a collaboration with Microsoft to expand their capital markets data and analytics platform. This partnership is expected to enhance the financial services offered to BNY Mellon’s clients, integrating advanced technology into their operations.
Plaid and PortX: Plaid and PortX have partnered to enhance data access and optimize solutions for financial institutions, aiming to improve the efficiency of financial services
Regulatory Changes
CFPB Policy Statement: The Consumer Financial Protection Bureau (CFPB) issued a policy statement clarifying its approach to identifying abusive practices in financial services. This is relevant for larger nonbank companies offering digital wallets and payment applications, subjecting them to increased scrutiny and potential regulatory oversight.
INFORM Consumers Act: Fintech companies selling consumer products must comply with the INFORM Consumers Act, which requires them to verify seller information to prevent counterfeit goods. Noncompliance may result in significant penalties.
Regulation Z Updates: The CFPB finalized new rules regarding late fees under Regulation Z, establishing safe harbor thresholds for card issuers. These changes aim to protect consumers from excessive fees while ensuring that financial institutions can still operate effectively.
Increased Scrutiny on Sponsor Banks: There's been more scrutiny on sponsor banks in embedded finance. Reports show that the FDIC has targeted these banks with enforcement actions, highlighting their challenges when partnering with fintech companies.
Evolving Compliance Requirements: As embedded finance continues to grow, regulatory bodies are adapting their frameworks to address the unique challenges posed by this sector. Ensuring compliance entails adherence to various laws concerning data privacy, consumer protection, and anti-money laundering.
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 in-depth, data-centric analysis of Embedded Finance industry in United States. Below is a summary of key market segments:
United States 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
United States 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
- Motor Vehicle
- Fire and Property
- Accident and Health
- General Liability
- Marine, Aviation and other Transport
- Other
United States 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
United States 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
United States Embedded Wealth Management Market Size and Forecast
United States 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
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 130 |
| Published | September 2024 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value ( USD | $ 30.8 Billion |
| Forecasted Market Value ( USD | $ 89.6 Billion |
| Compound Annual Growth Rate | 23.8% |
| Regions Covered | United States |
