The global embedded finance payment volume is projected to surpass EUR 6 trillion by 2025
AI is playing a major role in enhancing customer experiences within the embedded finance sector
The rapid adoption of embedded finance signifies a global shift in financial service access. Despite its promising trajectory, the sector faces uncertainty, such as risks in deviating from established models, self-competition concerns, and collaboration complexities. These challenges, however, offer innovation opportunities, with technology, especially Artificial Intelligence (AI), playing a crucial role in shaping embedded finance's future.
AI enhances customer experiences, facilitates robust risk management, and ensures effective fraud detection. While major global platforms leverage AI to streamline operations, its integration poses challenges in transparency, security, and risks across legal, operational, and reputational aspects.
Data security emerges as a top concern in Europe in embedded finance
The United States leads the global revenue race in embedded finance, generating over EUR 20 billion in 2022, with the global market expected to exceed EUR 6 trillion in payments by 2025. Moreover, fintech platforms envision a non-financial future, with approximately three-quarters expecting most financial products to be offered outside traditional channels. Consumer retail takes the lead in sector support at 95%, followed by telecom and healthcare.
Regionally, Europe anticipates significant growth, targeting more than EUR 150 billion by 2028, while the Asia-Pacific region is expected to generate more than double that number by 2024. Notably, in embedded finance, data security emerged as a top concern in Europe as of April 2023.
Key questions answered in the report:
- What are the main areas of embedded finance globally?
- What is the projected global payment volume in the embedded finance market by 2025?
- How is AI utilized in embedded finance, and what benefits and risks does it pose?
- What challenges does embedded finance face in the future?
- What is the projected market size of embedded finance in Europe by 2028?
Table of Contents
1. Key Takeaways2. Management Summary
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