Brazil 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 country is expected to grow by 14.4% annually to reach US$3.59 billion in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 26.2% from 2024 to 2029. The country's embedded finance revenues will increase from US$3.59 billion in 2024 to reach US$11.52 billion by 2029.

The embedded finance sector in Brazil has experienced substantial growth over the past few months, driven by the increasing integration of financial services into various digital platforms and the growing demand for seamless customer experiences. Key sub-segments, such as embedded payments and lending, have flourished as businesses leverage technology to improve service delivery and accessibility for consumers.

Embedded finance sector in Brazil is on a strong growth trajectory, driven by the increasing integration of financial services into digital platforms and the rising demand for seamless, customer-centric solutions. Over the past few months, significant product launches and strategic partnerships have propelled the sector forward, with key players like Marqeta, Gringo, and various insurtech startups leading the way in embedding financial solutions into everyday applications. This trend is further reinforced by supportive regulatory changes, such as the expansion of open banking frameworks and the introduction of regulatory sandboxes, which are fostering innovation while ensuring consumer protection. As Brazil continues to advance its fintech ecosystem, the country is well-positioned to strengthen its leadership in the Latin American embedded finance landscape, reshaping how financial services are delivered and experienced by consumers.

Looking ahead, this growth is expected to continue, supported by ongoing advancements in fintech and government initiatives aimed at promoting financial inclusion. As more companies embrace embedded finance strategies, Brazil is poised to solidify its position as a leader in the Latin American fintech landscape, further transforming how consumers engage with financial services.

Product Launches and Innovations

Marqeta's Expansion into Brazil

In July 2023, Marqeta, a card issuer, expanded its operations in Brazil by partnering with Fitbank, a banking-as-a-service platform. This collaboration allows Marqeta's clients to access a platform licensed by Brazil's central bank, integrating with PIX, the country’s real-time payment system, to streamline payment processes.

Gringo's Super-App Features

Gringo, a leading 'super-app' for drivers in Brazil, enhanced its platform by integrating additional financial services, including payment solutions and insurance offerings, to better serve its user base of over 5 million drivers.

New Embedded Insurance Products

Several insurtech startups introduced new embedded insurance products, allowing consumers to purchase coverage directly through digital platforms, simplifying access to insurance without the need for traditional processes. These launches highlight the rising trend of embedding financial services into everyday applications, enhancing user experience and accessibility in Brazil's rapidly evolving embedded finance ecosystem.

Strategic Partnership

Marqeta and Fitbank Partnership

In July 2023, Marqeta expanded into Brazil through a partnership with Fitbank, a banking-as-a-service platform. This collaboration allows Marqeta's customers to access Brazil’s central bank-licensed platform and integrate with PIX, improving payment solutions for businesses operating in the country.

Gringo and VEF Investment

In January 2024, Gringo, Brazil's leading 'super-app' for drivers, secured significant investment from VEF, deepening their partnership. The investment aims to enhance Gringo's embedded finance offerings by integrating additional financial services into the app for its more than 5 million users.

These partnerships reflect the expanding integration of financial services across platforms in Brazil, enhancing accessibility and convenience for both consumers and businesses.

Regulatory Changes

Expansion of the Open Banking Framework

The Central Bank of Brazil has been refining its open banking regulations to promote competition and innovation in financial services. This initiative facilitates the sharing of financial data among institutions, enabling fintech companies to offer more integrated solutions.

Regulatory Sandbox Initiatives

The Central Bank has also expanded its regulatory sandbox framework, allowing fintech firms to test new products and services in a controlled environment. This approach fosters innovation while ensuring compliance with regulatory standards, supporting the growth of embedded finance solutions.

Consumer Protection Regulations

New regulations have been introduced to enhance consumer protection in digital payments and lending. These measures are designed to ensure transparency and safeguard users from potential risks associated with embedded finance products.

These regulatory developments underscore Brazil's commitment to fostering a supportive environment for the growth of embedded finance, encouraging innovation while maintaining consumer safety and market integrity.

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 Brazil. Below is a summary of key market segments:

Brazil 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

Brazil 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

Brazil 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

Brazil 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

Brazil Embedded Wealth Management Market Size and Forecast

Brazil 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.