The embedded finance market is expected to grow at a compound annual growth rate (CAGR) of 36.41% from US$146.171 billion in 2025 to US$690.386 billion in 2030.
The market growth is mainly attributed to the increasing popularity of online payment services, i.e., the growing demand for digital and convenient financial services is anticipated to drive the overall market growth. Furthermore, technological advancement, which provides seamless integration between non-financial and financial platforms, is making businesses secure to incorporate payment more conveniently. Further, as per European Central Bank payment statistics, in the first half of 2023, e-money transactions in Europe increased by 6.9% to 4.4 billion, with a 7.0% increase in value to €0.2 billion. E-money with card transactions accounted for 9% of transactions, while e-money with the account was 91% of transactions. Additionally, non-cash payment transactions increased by 10.1% to 67.0 billion in the first half of 2023.
The rising willingness of consumers to utilize integrated financial services and the rising adoption of financial services online platforms like e-commerce websites and safe online payments are also resulting in the embedded finance market growth in the future. For instance, in April 2024, Finzly launched Account Galaxy™, a groundbreaking solution that empowers banks of all sizes to participate in the emerging embedded banking segment, overcoming limited participation due to the advanced technologies required.
In March 2023, SAP Fioneer launched its first B2B embedded finance platform, "Fioneer Embedded Finance as a Service," which allowed Financial Service Institutions (FSIs) to connect to SAP Enterprise resource planning processes, enabling the development of innovative embedded finance solutions.
One of the prime reasons supporting the market growth is the growing inclination of businesses towards digitalization and the rising popularity of embedded finance services in every sector. Consumers around the globe are switching toward e-commerce, which is expected to augment the market growth during the forecast period. Moreover, as per theUS Census Bureauof the Department of Commerce data of e-commerce, retail sales revenue in the U.S. increased from US$271.86 billion in the first quarter of 2023 to US$285.22 billion in the fourth quarter of 2023. Additionally, In Q4 2023, e-commerce sales accounted for 15.6% of total sales.
Moreover, increasing digitalization has given acceptance to various services like consumer lending and UPI payments and MasterCard payment acceptance has also seen a massive rise in the business sectors. For instance, in January 2024, Cybrid, a provider of embedded finance API solutions, expanded its platform to include B2B payment capabilities. Moreover, in May 2022, Synctera, a leading FinTech banking provider, partnered with Mastercard to integrate its open banking platform, provided by Mastercard's subsidiary Finicity, to offer account verification solutions for Synctera-powered FinTechs.
In addition, the rapid growth of e-commerce platforms in developing economies such as India provides further impetus to embedded finance services. This is because online retailers are integrating various financial services, such as BNPL solutions, digital wallets, and instant loans, directly into their platforms to provide the utmost ease to users across the country.
Besides that, as per the estimates from PIB, the UPI transactions have multifold in the country, from 92 crore in the year 2017-18 to 8,375 crore in 2022-23, thereby growing at a CAGR of 147% in terms of volume. This represents lucrative opportunities as the larger adoption of UPI payments in India can act as a major catalyst for propelling the expansion of the embedded finance market.
The major collaboration among key players coupled with mergers and acquisitions in the market spurs innovation, broadens consumer options, and eventually boosts market growth and attracts new customers. Successful launches may improve market share, strengthen retailer relationships, and create new market segments, all while boosting total sales and industry progress.
For instance, in 2022, SBM Bank India announced its collaboration with Open Financial Technologies Pvt Ltd for the introduction of Zwitch. This is Asia's first end-to-end embedded finance platform that provides No-Code, Low-Code Solutions, and API-based solutions for both fintech and non-fintech.
Additionally, in 2023, MyShubhLife, one of the largest embedded finance platforms in India, announced its partnership with Payworld, which is a fintech platform targeting retail merchants across the country. MyShubhLife, with the help of its NBFC Ekagrata, will provide retailers of Payworld with easy access to credit to fulfill all their working capital needs.
The market growth is mainly attributed to the increasing popularity of online payment services, i.e., the growing demand for digital and convenient financial services is anticipated to drive the overall market growth. Furthermore, technological advancement, which provides seamless integration between non-financial and financial platforms, is making businesses secure to incorporate payment more conveniently. Further, as per European Central Bank payment statistics, in the first half of 2023, e-money transactions in Europe increased by 6.9% to 4.4 billion, with a 7.0% increase in value to €0.2 billion. E-money with card transactions accounted for 9% of transactions, while e-money with the account was 91% of transactions. Additionally, non-cash payment transactions increased by 10.1% to 67.0 billion in the first half of 2023.
The rising willingness of consumers to utilize integrated financial services and the rising adoption of financial services online platforms like e-commerce websites and safe online payments are also resulting in the embedded finance market growth in the future. For instance, in April 2024, Finzly launched Account Galaxy™, a groundbreaking solution that empowers banks of all sizes to participate in the emerging embedded banking segment, overcoming limited participation due to the advanced technologies required.
In March 2023, SAP Fioneer launched its first B2B embedded finance platform, "Fioneer Embedded Finance as a Service," which allowed Financial Service Institutions (FSIs) to connect to SAP Enterprise resource planning processes, enabling the development of innovative embedded finance solutions.
Embedded finance market drivers
The growing digitalization of business is projected to propel the embedded finance market expansion.One of the prime reasons supporting the market growth is the growing inclination of businesses towards digitalization and the rising popularity of embedded finance services in every sector. Consumers around the globe are switching toward e-commerce, which is expected to augment the market growth during the forecast period. Moreover, as per theUS Census Bureauof the Department of Commerce data of e-commerce, retail sales revenue in the U.S. increased from US$271.86 billion in the first quarter of 2023 to US$285.22 billion in the fourth quarter of 2023. Additionally, In Q4 2023, e-commerce sales accounted for 15.6% of total sales.
Moreover, increasing digitalization has given acceptance to various services like consumer lending and UPI payments and MasterCard payment acceptance has also seen a massive rise in the business sectors. For instance, in January 2024, Cybrid, a provider of embedded finance API solutions, expanded its platform to include B2B payment capabilities. Moreover, in May 2022, Synctera, a leading FinTech banking provider, partnered with Mastercard to integrate its open banking platform, provided by Mastercard's subsidiary Finicity, to offer account verification solutions for Synctera-powered FinTechs.
Embedded finance market geographical outlook
Based on geography, the embedded finance market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia-Pacific.The embedded finance market in India is affected by various factors, such as the growth of extensive mobile and internet connectivity in the country coupled with a robust tech ecosystem. For instance- as per Internet in India Report 2023, the active internet users in the country have crossed the 800 million mark. Moreover, India is a fast-rising country with vibrant technological ecosystems; thereby, the penetration of embedded finance services is anticipated to grow at a significant pace till the forecast period. For instance- as per the IBEF, the embedded finance businesses in the country are expected to grow at a CAGR of 45% in the coming years.In addition, the rapid growth of e-commerce platforms in developing economies such as India provides further impetus to embedded finance services. This is because online retailers are integrating various financial services, such as BNPL solutions, digital wallets, and instant loans, directly into their platforms to provide the utmost ease to users across the country.
Besides that, as per the estimates from PIB, the UPI transactions have multifold in the country, from 92 crore in the year 2017-18 to 8,375 crore in 2022-23, thereby growing at a CAGR of 147% in terms of volume. This represents lucrative opportunities as the larger adoption of UPI payments in India can act as a major catalyst for propelling the expansion of the embedded finance market.
The major collaboration among key players coupled with mergers and acquisitions in the market spurs innovation, broadens consumer options, and eventually boosts market growth and attracts new customers. Successful launches may improve market share, strengthen retailer relationships, and create new market segments, all while boosting total sales and industry progress.
For instance, in 2022, SBM Bank India announced its collaboration with Open Financial Technologies Pvt Ltd for the introduction of Zwitch. This is Asia's first end-to-end embedded finance platform that provides No-Code, Low-Code Solutions, and API-based solutions for both fintech and non-fintech.
Additionally, in 2023, MyShubhLife, one of the largest embedded finance platforms in India, announced its partnership with Payworld, which is a fintech platform targeting retail merchants across the country. MyShubhLife, with the help of its NBFC Ekagrata, will provide retailers of Payworld with easy access to credit to fulfill all their working capital needs.
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Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive IntelligenceReport Coverage:
- Historical data & forecasts from 2022 to 2030
- Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
- Competitive Positioning, Strategies, and Market Share Analysis
- Revenue Growth and Forecast Assessment of segments and regions including countries
- Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)
The embedded finance market is analyzed into the following segments:
By Type
- Embedded Payment
- Embedded Insurance
- Embedded Investment
- Embedded Lending
- Embedded Banking
By Business Model
- B2B
- B2C
- B2B2B
- B2B2C
By End-Users
- Retail
- Healthcare
- Logistics
- Manufacturing
- Travel & Entertainment
- Others
By Geography
- North America
- South America
- Europe
- Middle East and Africa
- Asia-Pacific
Table of Contents
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
5. EMBEDDED FINANCE MARKET BY TYPE
6. EMBEDDED FINANCE MARKET BY BUSINESS MODEL
7. EMBEDDED FINANCE MARKET BY END USERS
8. EMBEDDED FINANCE MARKET BY GEOGRAPHY
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
10. COMPANY PROFILES
Companies Mentioned
- Stripe, Inc.
- FIS (PAYRIX)
- Cybrid Technology Inc.
- Walnut Insurance Inc
- Lendflow
- Finastra
- Zopa Bank Limited
- Fortis Payment Systems, LLC
- Transcard Payments
- Fluenccy Pty Limited
- Qover
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 149 |
| Published | December 2024 |
| Forecast Period | 2025 - 2030 |
| Estimated Market Value ( USD | $ 146.17 Billion |
| Forecasted Market Value ( USD | $ 690.39 Billion |
| Compound Annual Growth Rate | 36.4% |
| Regions Covered | Global |
| No. of Companies Mentioned | 11 |
