Embedded Finance Market Size, Trends, Share, Growth, Report 2023-2032
The global embedded finance market size was estimated at around USD 65.48 billion in 2022 and it is projected to hit around USD 1,070.06 billion by 2032, growing at a CAGR of 32.23% from 2023 to 2032. The embedded finance market in the United States was accounted for USD 11.24 billion in 2022.
Key Pointers
Report Scope of the Embedded Finance Market
| Report Coverage | Details |
| Revenue Share of North America in 2022 | 26.04% |
| Revenue Forecast by 2032 | USD 1,070.06 billion |
| Growth Rate from 2023 to 2032 | CAGR of 32.23% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Companies Covered | Stripe, Inc.; PAYRIX; Cybrid Technology Inc.; Walnut Insurance Inc.; Lendflow; Finastra; Zopa Bank Limited; Fortis Payment Systems, LLC; Transcard Payments; Fluenccy Pty Limited |
The embedded finance growth can be attributed to the increasing smartphone and internet penetration across the globe. The increasing use of the internet and smartphone leads to the high adoption of digital mobile-based financial services, which bode well for the growth of the embedded finance industry. Furthermore, the increasing digitalization across various industries, including the banking and finance industry, is also expected to propel the embedded finance industry growth over the forecast period.
The growth in e-commerce and online shopping across the globe is anticipated to fuel market growth over the forecast period. This can be attributed to the use and integration of financial services into e-commerce platforms for seamless and convenient customer experiences. The e-commerce companies integrate financial services such as payments, lending, and insurance, among others. For instance, various e-commerce platforms such as Amazon.com and Wix e-commerce, among others provide buy now pay later services to their customers.
The embedded finance industry is expected to surge over the forecast period. The growth can be attributed to the technological advancements in Artificial Intelligence (AI). AI being used in embedded finance can help service providers to offer more enhanced and personalized services to their customers, leading to a rise in the utilization of services and increased revenue. Furthermore, the growth in the use of Application Programming Interfaces (APIs) that enable the exchange of data between financial institutions and other businesses, allowing the development of new financial products, is anticipated to fuel the market’s growth over the forecast period.
The increasing investments by several venture capital firms and Fintech companies into embedded finance start-ups bode well with the growth of the market. For instance, in October 2022, Railsr, formerly known as Railsbank, a global embedded finance company, announced that it raised USD 46 million through its series C funding round. The funding included USD 26 million in equity and USD 20 million in debt, the equity investments came from Outrun Ventures, Anthos Capital leading, Ventura, CreditEase and Moneta being participants and the debt funds were provided by Mars Capital, an investment platform. With this funding, the company is focusing towards expanding its business across Europe.
Though the embedded finance industry is expected to witness growth over the forecast period, some of the challenges are anticipated to restrain the growth of the market. The challenges include compliance requirements and financial institution dependency. Furthermore, the consumer in embedded finance has direct contact with the retailer or the service provider, which lacks bank interaction with the customer. Also, banks would not accept such partnerships with non-fintech, where the role of the bank is less important for the end user. However, the benefits such as seamless customer experiences and increase in spending of consumers through offered services such as BNPL are further anticipated to propel the market’s growth over the forecast period.
Type Insights
The embedded payment segment dominated the market with a revenue share of over 28.05% in 2022. Embedded payments offer businesses a faster and more efficient way to receive payments than traditional invoicing methods. These payments not only provide access to alternative funding sources but also simplifies the buying process for customers, resulting in higher levels of satisfaction and loyalty. Consequently, businesses can expect to experience increased revenue and strengthened brand loyalty. Hence, it is expected to drive segment growth over the forecast period.
The embedded lending segment is anticipated to witness the fastest growth over the forecast period. The rapid growth of embedded lending can be attributed to the increasing demand for seamless and quick access to funds. According to The Future of Customer Experience in Embedded Lending survey in December 2022, a global study of 350 senior executives across the global lending industry, nearly 45% of loans could be withdrawn in the non-financial situation over the next five years. Additionally, 93% of respondents believed that embedded lending would lead to effortless loan applications. Hence, the aforementioned factors are anticipated to drive the segment’s growth over the forecast period.
Business Model Insights
The B2B segment dominated the market with a revenue share of over 30.03% in 2022. The B2B segment includes financial services offerings such as cross-border payments, digital payments, and inventory financing services, among others, by non-financial businesses. In addition, increasing launches of B2B embedded finance platforms globally are projected to drive the adoption of B2B embedded finance. For instance, in March 2023, SAP Fioneer, a software company, recently unveiled a B2B embedded finance platform designed for financial service institutions. The platform aims to help these institutions enhance their services in the rapidly digitalized trade environment and gain a competitive edge.
The B2C segmentis anticipated to witness significant growth over the forecast period. The segment's growth can be attributed to the increasing adoption of B2C embedded finance. The increasing adoption can be attributed to the need for businesses to provide a seamless experience to their customers and increase revenue by offering innovative financial products and services. Furthermore, several e-commerce companies such as Shopify, Inc. and Amazon, Inc. are involved in offering embedded finance services such as buy now pay later and wallet payment services, among others.
End-use Insights
The retail segment dominated the market with a revenue share of over 20.02% in 2022. Retailers across the globe are investing heavily in embedded finance platforms to offer embedded finance services to their customers. According to the survey by Aion Bank in May 2022, around 74% of European retailers have rolled on the embedded finance offerings to their customers. In addition, 73% of the retailers said that their customers desire embedded finance products. Furthermore, embedded finance services such as cashback loyalty schemes and credit & debit card payments attract customers and help retailers build loyal customer groups.
The travel & entertainment segment is anticipated to witness the fastest growth over the forecast period. Travel & entertainment companies are involved in launching several embedded finance services, including buy now pay later services. For instance, in January 2023, Kayak, a part of Booking Holdings Inc., partnered with Affirm, a financial company, to launch a buy now pay later service for all eligible travelers on the firm's website. As a result of this launch, travelers were enabled with flexibility in payment through a BNPL option while booking trips on KAYAK.com.
Regional Insights
The North American region dominated the market with a revenue share of over 26.04% in 2022. The presence of prominent market players across the region is expected to drive the regional market's growth. Furthermore, embedded finance startups across the region are involved in fundraising activities to accelerate the adoption of embedded finance. For instance, in August 2022, Parafin, Inc., an embedded finance startup in the U.S., announced that it raised USD 60 million through a series B funding round. The round was led by GIC, Singapore's sovereign wealth fund. The company aimed to utilize funds for introducing new products designed for small businesses.
The Asia Pacific region is anticipated to witness the fastest growth over the forecast period. The growth of the Asia Pacific region can be attributed to the initiatives taken by various players in the market. For instance, in October 2022, KPMG Services Pte. Ltd., a firm providing audit, tax, and advisory services, announced the launch of the embedded finance hub in Singapore. This launch of the embedded finance hub aimed to accelerate the adoption of embedded finance services across the country by offering support to financial institutions and enterprises. Furthermore, the growing e-commerce industry across the Asia Pacific region also bodes well with the growth of the embedded finance industry in the region.
Embedded Finance Market Segmentations:
By Type
By Business Model
By End-use
By Regional
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Type Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Embedded Finance Market
5.1. COVID-19 Landscape: Embedded Finance Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Embedded Finance Market, By Type
8.1. Embedded Finance Market, by Type, 2023-2032
8.1.1 Embedded Payment
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. Embedded Insurance
8.1.2.1. Market Revenue and Forecast (2020-2032)
8.1.3. Embedded Investment
8.1.3.1. Market Revenue and Forecast (2020-2032)
8.1.4. Embedded Lending
8.1.4.1. Market Revenue and Forecast (2020-2032)
8.1.5. Embedded Banking
8.1.5.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global Embedded Finance Market, By Business Model
9.1. Embedded Finance Market, by Business Model, 2023-2032
9.1.1 B2B
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. B2C
9.1.2.1. Market Revenue and Forecast (2020-2032)
9.1.3. B2B2B
9.1.3.1. Market Revenue and Forecast (2020-2032)
9.1.4. B2B2C
9.1.4.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global Embedded Finance Market, By End-use
10.1. Embedded Finance Market, by End-use, 2023-2032
10.1.1. Retail
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. Healthcare
10.1.2.1. Market Revenue and Forecast (2020-2032)
10.1.3. Logistics
10.1.3.1. Market Revenue and Forecast (2020-2032)
10.1.4. Manufacturing
10.1.4.1. Market Revenue and Forecast (2020-2032)
10.1.5. Travel & Entertainment
10.1.5.1. Market Revenue and Forecast (2020-2032)
10.1.6. Others
10.1.6.1. Market Revenue and Forecast (2020-2032)
Chapter 11. Global Embedded Finance Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Type (2020-2032)
11.1.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.1.3. Market Revenue and Forecast, by End-use (2020-2032)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Type (2020-2032)
11.1.4.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.1.4.3. Market Revenue and Forecast, by End-use (2020-2032)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Type (2020-2032)
11.1.5.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.1.5.3. Market Revenue and Forecast, by End-use (2020-2032)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Type (2020-2032)
11.2.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.2.3. Market Revenue and Forecast, by End-use (2020-2032)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Type (2020-2032)
11.2.4.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.2.4.3. Market Revenue and Forecast, by End-use (2020-2032)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Type (2020-2032)
11.2.5.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.2.5.3. Market Revenue and Forecast, by End-use (2020-2032)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Type (2020-2032)
11.2.6.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.2.6.3. Market Revenue and Forecast, by End-use (2020-2032)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Type (2020-2032)
11.2.7.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.2.7.3. Market Revenue and Forecast, by End-use (2020-2032)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Type (2020-2032)
11.3.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.3.3. Market Revenue and Forecast, by End-use (2020-2032)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Type (2020-2032)
11.3.4.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.3.4.3. Market Revenue and Forecast, by End-use (2020-2032)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Type (2020-2032)
11.3.5.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.3.5.3. Market Revenue and Forecast, by End-use (2020-2032)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Type (2020-2032)
11.3.6.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.3.6.3. Market Revenue and Forecast, by End-use (2020-2032)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Type (2020-2032)
11.3.7.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.3.7.3. Market Revenue and Forecast, by End-use (2020-2032)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Type (2020-2032)
11.4.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.4.3. Market Revenue and Forecast, by End-use (2020-2032)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Type (2020-2032)
11.4.4.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.4.4.3. Market Revenue and Forecast, by End-use (2020-2032)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Type (2020-2032)
11.4.5.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.4.5.3. Market Revenue and Forecast, by End-use (2020-2032)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Type (2020-2032)
11.4.6.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.4.6.3. Market Revenue and Forecast, by End-use (2020-2032)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Type (2020-2032)
11.4.7.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.4.7.3. Market Revenue and Forecast, by End-use (2020-2032)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Type (2020-2032)
11.5.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.5.3. Market Revenue and Forecast, by End-use (2020-2032)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Type (2020-2032)
11.5.4.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.5.4.3. Market Revenue and Forecast, by End-use (2020-2032)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Type (2020-2032)
11.5.5.2. Market Revenue and Forecast, by Business Model (2020-2032)
11.5.5.3. Market Revenue and Forecast, by End-use (2020-2032)
Chapter 12. Company Profiles
12.1. Stripe, Inc.
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. PAYRIX
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. Cybrid Technology Inc.
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. Walnut Insurance Inc.
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. Lendflow
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. Finastra
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. Zopa Bank Limited
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
12.8. Fortis Payment Systems, LLC
12.8.1. Company Overview
12.8.2. Product Offerings
12.8.3. Financial Performance
12.8.4. Recent Initiatives
12.9. Transcard Payments
12.9.1. Company Overview
12.9.2. Product Offerings
12.9.3. Financial Performance
12.9.4. Recent Initiatives
12.10. Fluenccy Pty Limited
12.10.1. Company Overview
12.10.2. Product Offerings
12.10.3. Financial Performance
12.10.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers