Global Embedded Payment Business and Investment Opportunities - Q1 2022 Update

According to the Q4 2021 Embedded Finance Survey, Embedded Payment industry is expected to grow by 40.4% on annual basis to reach US$124,755.7 million in 2022.

The embedded payment industry is expected to grow steadily over the forecast period, recording a CAGR of 23.1% during 2022-2029. The embedded payment revenues in the region will increase from US$124,755.7 million in 2022 to reach US$380,573.2 million by 2029.

Foreign players are launching new solutions to expand their foothold in Asian countries

The Covid-19 pandemic has hastened the expansion of the e-commerce sector in Japan, and as more Japanese people embrace online buying, electronic payments are becoming increasingly popular. With the growing demand for seamless payment options in Japan, the competition is growing intense among market players to provide an enhanced customer experience. Moreover, market players are launching new products to acquire more clients in Japan and tap the attractive opportunity. For instance,

• In May 2021, Dutch-based payment platform provider Adyen launched a new solution to expand its procurement capabilities in Japan. This new launch followed the launch of Adyen's local acquisition capabilities in Australia, New Zealand, Hong Kong, Malaysia, and Singapore.
• This announcement expands Adyen's local acquisition capabilities in Asia-Pacific. This new launch is fueled by growing demand from international and domestic merchants to serve Japanese buyers better.

Market players are obtaining new licenses in Singapore to expand their foothold in the country

Singapore's lengthy history of support for new sectors explains why many of the world's most innovative enterprises are looking forward to expanding their foothold in Singapore. The country has become a global hotspot for fintech start-ups.

However, the customers in Singapore still prefer making payments through cash. While Singapore has no plans to replace cash usage with contactless payment technologies soon completely, the Monetary Authority of Singapore has sponsored several initiatives altering the way people in the city-state use money.

With this growing support from the Singapore government, market players are obtaining the required licenses to expand their foothold in the country. For instance,

• In May 2021, a global platform provider, Adyen Singapore Pte Ltd, received approval from the Monetary Authority of Singapore (MAS). Under this approval, the company can implement merchant acquisition and domestic money transfer services under the Payment Services Act 2019 (PSA).
• In January 2022, Australia-based fintech platform Airwallex expanded its presence in Singapore. The company obtained its grant of a Major Payment Institution (MPI) license from the Monetary Authority of Singapore.

With the Singapore government's expanding support for fintech businesses, the country is anticipated to see an influx of new product launches and technological development in payment platforms in the next few quarters.

The unanticipated market scenario that caused a shift in the payments sector in early 2021 persisted throughout the year. These changes accelerated the development of three broad themes that continue to influence the competitive dynamics within the payment ecosystem across European countries: the rapid rise of e-commerce activities, the proliferation of innovative payment methods, and the development of next-generation payment infrastructure.

Embedded payment platform providers are focusing on the growth prospects of the hospitality industry in Europe

With the growing prospects for embedded payments across various sectors, the hospitality sector is no exception. Most European countries have been on the list of top tourist destinations and have a massive hospitality industry.

With the lifting of lockdown restrictions across European countries, the hospitality industry is ready to thrive again. Market players are planning to regain their positions in the market by providing add-on services to the clients.

Additionally, Embedded payment platforms providers are making strategies to tap the prospects in the hospitality industry through partnerships. For instance,

• In December 2021, Netherlands-based payment platform provider Adyen partnered with Portugal-based hospitality information technology & services provider Nonius. Under this partnership, both companies are planning to assist businesses in the hospitality industry in integrating guest technology with payment technologies. Under this partnership, Adyen plans to utilize Nonius’s client base in the hospitality industry and expand its market share.
• In September 2021, Adyen partnered with the United States-based hospitality software and solutions provider Agilysys Inc. Under this partnership will extend Agilysys customers’ access to global payments.

The Africa & Middle East embedded payment industry is going through a trial phase, and incumbents in the payments market ecosystem must evolve to stay relevant in the industry, as the everchanging demand from clients is making the current system outdated.

Established and new-age fintech companies have invested heavily in embedded payment solutions in the last four to six quarters, resulting in market growth.

Moreover, customers expect e-commerce platforms to provide a smooth buying experience. Embedded payment can be the solution to this ever-growing client requirements. This also allows the companies to provide value-added benefits to clients and increase loyalty. Consequently, the publisher expects strong market growth over the next four to eight quarters.

The embedded payments industry is still in its nascent stages of development in most of the big economies such as Egypt and the UAE. However, in the last six to eight quarters, it was observed that a spike in the number of start-ups in the embedded payment market, spurred by the collaborative efforts of the governments and other stakeholders, enhanced the payment systems.

The region has several diverse factors driving the market growth, including a vast economy, a large young population, and an abundant skilled workforce. As a result, the region has enormous potential to grow its fintech industry in 2022 and beyond.

Presently, the number of embedded payments providers is quite less in Latin America. With the growth in fundraising activities, the market is expected to grow from a short to medium term perspective. Market players are increasingly joining hands to combine their expertise and develop new embedded payments solutions to capture the massive untapped population. For instance,

• In November 2020, Brazil-based fintech company EBANX and ride-hailing app Uber announced a partnership on PIX (a payment system launched by the Brazilian government.
• Under this partnership, EBANX will allow Uber clients' needs of payments, localization, and good user experience through their solutions." Since a large population of Brazil does not have a bank account, Uber’s clients are anticipated to benefit from the newly introduced instant payment platforms, whereas EBANX is expected to utilize Uber’s existing client base.

This report provides global insights into key trends and drivers along with a detailed data centric analysis of market opportunities in embedded payment industry at global and country level. Region and countries included in this report are:

1. Global
2. Argentina
3. Australia
4. Brazil
5. Canada
6. China
7. France
8. Germany
9. India
10. Indonesia
11. Italy
12. Kenya
13. Mexico
14. Nigeria
15. Philippines
16. Russia
17. South Africa
18. Thailand
19. United Arab Emirates
20. United Kingdom
21. United States

Scope

This report provides global insights, along with an in-depth data centric analysis of the Embedded Payment industry, covering 50+ KPIs for each region and country (290+ charts and 230+ tables in all). Below is a summary of key market segments:

Embedded Payment Market Size and Forecast

Embedded Payment by Consumer Segments, 2020 - 2029

• B2B
• B2C

Embedded Payment by End-Use Sector, 2020 - 2029

• 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

All the regional and country reports cover the following charts and tables:

List of Figures

Figure 1: Methodology Framework
Figure 2: Embedded Payment - Revenue (US$ Million), 2020-2029
Figure 3: Market Share Analysis by Consumer Segment (%), 2020-2029
Figure 4: B2B Payment - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Figure 5: B2C Payment - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Figure 6: Market Share Analysis by End Use Segment (%), 2021
Figure 7: Retail & Consumer Goods Lending - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Figure 8: Digital Products & Services - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Figure 9: Utility Bill Payment - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Figure 10: Travel & Hospitality - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Figure 11: Leisure & Entertainment - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Figure 12: Health & Wellness - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Figure 13: Office Supplies & Equipment - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Figure 14: Other - Embedded Payment Industry Revenue (US$ Million), 2020-2029

List of Tables

Table 1: Embedded Payment - Revenue (US$ Million), 2020-2029
Table 2: B2B Payment - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Table 3: B2C Payment - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Table 4: Retail & Consumer Goods Lending - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Table 5: Digital Products & Services - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Table 6: Utility Bill Payment - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Table 7: Travel & Hospitality - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Table 8: Leisure & Entertainment - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Table 9: Health & Wellness - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Table 10: Office Supplies & Equipment - Embedded Payment Industry Revenue (US$ Million), 2020-2029
Table 11: Other - Embedded Payment Industry Revenue (US$ Million), 2020-2029

Reasons to buy

• In-depth Understanding of Embedded Finance Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028).
• 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.