Asia Pacific Embedded Finance Market Size & Forecast by Value and Volume Across 100+ KPIs by Business Models, Distribution Models, End-Use Sectors, and Key Verticals (Payments, Lending, Insurance, Banking, Wealth) - Databook Q4 2025 Update

The embedded finance market in Asia Pacific is expected to grow by 9.1% on an annual basis to reach US$288.8 billion by 2025.

The embedded finance market in the region has experienced robust growth during 2021-2025, achieving a CAGR of 12.7%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 6.6% from 2026 to 2030. By the end of 2030, the embedded finance market is projected to expand from its 2024 value of US$264.7 billion to approximately US$373.2 billion.

Key Trends and Drivers Shaping Embedded Finance in Asia Pacific

Embedded finance in Asia Pacific is moving from early stage experimentation to scaled implementation across both consumer and SME use cases. Regional dynamics such as mobile first ecosystems, digital infrastructure investments, fragmented financial access, and progressive regulation are uniquely shaping the embedded finance landscape. Over the next 2-4 years, the region is expected to witness deeper integration of financial services into both platforms based commerce and enterprise workflows. The trend will intensify across sectors, with data driven and regulatory compliant embedded models forming the next phase of growth.

Embedded finance is expanding rapidly across digital commerce and lifestyle platforms

• Embedded finance in Asia Pacific is increasingly being integrated into consumer facing platforms such as ride hailing, e commerce, and lifestyle super apps. Companies like Grab (Southeast Asia), Gojek (Indonesia), and Kakao (South Korea) now offer payments, insurance, lending, and investment products as part of their core apps. In India, Flipkart and PhonePe are embedding micro insurance, credit lines, and UPI based services within their respective ecosystems.
• High mobile penetration, app first user behavior, and a preference for platform based consumption models have created a conducive environment for embedded finance. The success of early models, such as Grab Financial Group and Kakao Pay, has encouraged other players to enter the space. Government support for digital financial services such as India’s UPI, Indonesia’s BI FAST, and South Korea’s MyData initiative has further accelerated adoption.
• This trend is expected to intensify, with non-financial platforms becoming more central to financial access in emerging and developed APAC economies. Traditional banks and insurers will likely collaborate more with platforms to remain embedded in the digital consumption journey. Market concentration may increase in markets where super apps dominate access to digital finance.

B2B embedded finance is scaling in SME lending and supply chain finance

• There is a growing focus on embedded finance for B2B use cases in APAC, particularly in SME credit and supply chain finance. Platforms like Bizongo (India), Akulaku (Indonesia), and Airwallex (Australia) are embedding financial services into procurement, invoicing, and logistics platforms to offer working capital and cross border payment solutions.
• SMEs across the region face persistent credit access issues, especially in Southeast Asia and South Asia. Embedded models help reduce underwriting risk by leveraging transactional data from ERP, e commerce, or logistics platforms. Regulatory sandbox initiatives in Singapore, Malaysia, and India are also enabling experimentation with alternate credit scoring and embedded underwriting.
• The trend is expected to accelerate as more platforms move upstream in the SME value chain, especially in countries with fragmented banking infrastructure. Financial services may become bundled into B2B SaaS, commerce, and logistics tools, creating sticky ecosystems. Banks and fintechs will increasingly partner with vertical SaaS and ERP platforms to access SME data for underwriting.

Embedded insurance is gaining traction through digital distribution and contextual bundling

• Insurance products are increasingly being embedded into digital experiences across Asia Pacific especially in travel, mobility, e commerce, and health related platforms. Companies like CoverGo (Hong Kong), Igloo (Southeast Asia), and Paytm Insurance (India) are enabling contextual distribution of micro insurance products directly within partner apps.
• The low penetration of insurance across many APAC markets especially in Indonesia, Philippines, and India has led to demand for frictionless, bundled models. Regulatory support for digital only insurers (e.g., Hong Kong’s virtual insurance licensing, India’s sandbox for micro insurance), and rising consumer comfort with in app purchases, have facilitated this shift.
• The trend will continue to expand in scope and product complexity from one time travel or gadget insurance to embedded life, health, and income protection products. Digital marketplaces and platforms will become critical insurance distributors, particularly for underserved demographics. This could reduce distribution costs while creating new underwriting challenges around consent, disclosures, and claims servicing.

Consumer credit is being embedded across e commerce, edtech, and mobility platforms

• Buy Now, Pay Later (BNPL), installment credit, and small ticket loans are increasingly being embedded into digital consumer journeys across APAC. India based Simpl and Indonesia’s Kredivo, and Australia's Afterpay are embedding point of sale credit across verticals including education, fashion, healthcare, and food delivery.
• Rising digital consumption among credit thin populations, particularly youth and gig workers, is driving demand for frictionless credit. The proliferation of alternative credit scoring and tokenized payment infrastructure (e.g., India’s Account Aggregator, Australia’s Consumer Data Right) is enabling risk managed lending at scale. Partner platforms also benefit from higher cart conversions and customer retention.
• BNPL and embedded credit offerings will likely become more regulated, especially in Australia, India, and Singapore, with requirements for transparency and affordability checks. Embedded credit will evolve beyond checkout financing to include recurring subscription loans, deferred tuition models, and bundled working capital products in the gig economy.

Open finance frameworks are unlocking data driven embedded finance models

• Open finance policies are enabling embedded finance providers to access user permissioned financial data, enhancing credit scoring, product personalization, and cross product bundling. Australia’s Consumer Data Right (CDR), India’s Account Aggregator framework, and South Korea’s MyData initiative are among the most advanced examples globally.
• Governments are actively promoting interoperability and competition in financial services. These frameworks are designed to reduce information asymmetry and give consumers more control over their financial data. Fintechs, neobanks, and non-financial platforms are leveraging these APIs to embed savings, credit, and investment products in real time.
• As technical and regulatory infrastructure matures, embedded finance models will become increasingly data driven and customized. Players that can navigate consent management and data protection regulations will gain competitive advantage. Over time, open finance is likely to shift embedded finance from product bundling to more dynamic, needs based financial engagement.

Competitive Landscape in the Embedded Finance Market in Asia Pacific

Asia Pacific’s embedded finance landscape is characterized by a dynamic mix of incumbents, fintechs, and platform giants, each pursuing region specific strategies to embed financial services at the point of need. While competition is intensifying, the field remains uneven across geographies, with emerging economies leaning toward super app dominance and developed markets advancing infrastructure led models. Over the next 2-4 years, market success will hinge on access to compliant infrastructure, depth of distribution partnerships, and ability to operate across varied regulatory regimes. Strategic collaboration, not standalone scale, will likely define the region’s most competitive embedded finance providers.

Competitive intensity is rising as fintechs, incumbents, and platforms compete for embedded access

• The Asia Pacific embedded finance landscape is becoming increasingly competitive, with both financial and non-financial players seeking to control distribution and customer ownership. Fintechs are partnering with digital platforms to integrate lending, insurance, and payment solutions, while incumbent banks are launching embedded offerings to retain relevance. Meanwhile, regional super apps like Grab and Gojek continue to scale financial offerings within their ecosystems.
• Competitive intensity varies by country. In mature markets like Australia and Singapore, regulatory clarity and consumer data access are enabling broader participation, while in Indonesia, Vietnam, and the Philippines, platform led models dominate due to underbanked demographics. Embedded finance is also extending beyond consumer payments and lending, with competition intensifying in SME finance and insurance distribution especially in India, Indonesia, and Vietnam.
• Over the next 2-4 years, the competitive environment is expected to become more fragmented, with niche specialists (e.g., CoverGo for embedded insurance) coexisting with vertically integrated platform giants. Success will depend on distribution depth, regulatory navigation, and data driven personalization capabilities.

Key players span fintechs, banks, and tech platforms each leveraging different moats

• Fintechs like Pine Labs (India), Akulaku (Indonesia), Kredivo (Indonesia), and Atome (Southeast Asia) are embedding credit and checkout financing into retail and online journeys. Airwallex (Australia, Singapore) is building cross border payment and embedded finance capabilities for global businesses.
• Several banks are embedding finance through partnerships or APIs. For example, Standard Chartered’s nexus is powering white labeled banking for ecosystem partners in Indonesia and other Southeast Asian markets. In Japan, Mitsubishi UFJ Financial Group (MUFG) is exploring embedded finance models through fintech subsidiaries.
• Super apps like Grab and Gojek remain dominant across multiple financial service lines. In China, Tencent and Alibaba’s embedded finance models (via WeChat Pay and Alipay) are well established, though regulatory tightening has slowed expansion. E commerce players such as Lazada and Shopee are also embedding BNPL and wallet features across Southeast Asia.
• Recent entrants such as B2B focused platforms (e.g., Aspire in Singapore and Validus in Vietnam) are targeting SME embedded finance via ERP and supply chain integrations. Cross border Insurtech’s like Igloo and Qoala are scaling embedded insurance distribution through travel, mobility, and e commerce platforms.

Regulatory frameworks are evolving to shape competition and licensing pathways

• Regulatory frameworks are creating both tailwinds and entry barriers depending on the country:
• In India, the Reserve Bank of India (RBI) issued updated guidelines in 2024 tightening BNPL operations and wallet KYC requirements, impacting embedded credit products. Australia’s Consumer Data Right (CDR) Phase 3, implemented in late 2024, expanded the scope of open banking to include non-bank financial providers, benefitting fintech led embedded offerings.
• Singapore’s Monetary Authority of Singapore (MAS) introduced digital banking license enhancements to allow embedded finance use cases for non-banks and tech companies.
• Indonesia’s OJK (Financial Services Authority) issued embedded lending guidelines in late 2024, focusing on disclosure, partner liability, and embedded risk assessment.
• Markets like Singapore and Australia offer clear pathways for embedded finance providers, while India and Indonesia maintain tighter supervisory oversight. Regulatory sandboxes in Thailand, Malaysia, and Vietnam are being used to test embedded finance models, particularly for underserved and gig economy segments.

The competitive landscape will shift toward infrastructure led and vertically specialized models

• The next phase of competition will be driven by infrastructure players offering modular banking, lending, and insurance as a service capability. Firms such as Mambu, Finastra, and Railsr are deepening their presence in Asia Pacific, enabling both incumbents and non-financial players to launch embedded offerings quickly.
• The ecosystem will see increased specialization by vertical (e.g., healthcare, education, logistics), with embedded finance providers offering tailored credit, insurance, and payment solutions. Embedded wealth and pension products may also gain traction in developed economies like Japan, Singapore, and South Korea.
• As the market matures, embedded finance will become less about payment or credit integration and more about controlling the end to end digital experience. Players that succeed will likely own platform relationships, data flows, and compliance pipelines across multiple countries.

This report provides a detailed data-centric analysis of the embedded finance industry in Asia Pacific, covering five major verticals: payments, lending, insurance, banking, and investments & wealth management. It covers more than 100 KPIs, including transaction value, transaction volume, average transaction size, revenue indicators, and financial performance measures.

The report offers segmentation by business models (platform-based, enabler, and regulatory entity), distribution models (own and third-party platforms), and end-use markets, including e-commerce, retail, healthcare, travel & hospitality, utilities, automotive, education, and the gig economy. Together, these datasets provide a comprehensive, quantifiable view of market size, operational efficiency, risk, customer behavior, and user experience in the embedded finance market.

PayNXT360 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.

This title is a bundled offering, combining the following 14 reports, covering 2200+ tables and 2600+ figures:

1. Asia Pacific Embedded Finance Business and Investment Opportunities Databook
2. Australia Embedded Finance Business and Investment Opportunities Databook
3. Bangladesh Embedded Finance Business and Investment Opportunities Databook
4. China Embedded Finance Business and Investment Opportunities Databook
5. India Embedded Finance Business and Investment Opportunities Databook
6. Indonesia Embedded Finance Business and Investment Opportunities Databook
7. Japan Embedded Finance Business and Investment Opportunities Databook
8. Malaysia Embedded Finance Business and Investment Opportunities Databook
9. South Korea Embedded Finance Business and Investment Opportunities Databook
10. Philippines Embedded Finance Business and Investment Opportunities Databook
11. Singapore Embedded Finance Business and Investment Opportunities Databook
12. Taiwan Embedded Finance Business and Investment Opportunities Databook
13. Thailand Embedded Finance Business and Investment Opportunities Databook
14. Vietnam Embedded Finance Business and Investment Opportunities Databook

Scope

This report provides in-depth, data-centric analysis of the regional embedded finance market, with exclusive coverage of B2C transactions and adoption metrics. Below is a summary of key market segments.

Embedded Finance Market Size and Growth Dynamics

• Total Transaction Value
• Number of Transactions
• Average Value per Transaction

Embedded Finance Financial Performance Indicators

• Total Revenue
• Average Revenue per Transaction / Product

Embedded Finance Key Metrics

• Operational Efficiency Metrics: Transaction Success Rate, Automation Rate (Instant Decision %), Average Turnaround / Processing Time
• Quality & Risk Metrics: Fraud Rate, Error Rate
• Customer Behavior Metrics: Repeat Borrowing Rate, Customer Retention Rate, Churn Rate, Conversion Rate, Abandonment Rate, Cross-Sell / Upsell Rate
• User Experience Metrics: Average Transaction Speed, Average Order / Loan / Policy / Investment Size

Embedded Payments Market Size and Growth Dynamics

• Total Payment Value (TPV) and Growth Outlook
• Number of Transactions and Usage Trends
• Average Revenue per Transaction

Embedded Payments Key Metrics

• Transaction Metrics: Transaction Success Rate, Repeat Usage Rate
• Operational Efficiency Metrics: Chargeback Rate, Fraud Rate, Dispute / Resolution Rate
• Conversion & Retention Metrics: Conversion Rate, Abandonment Rate, Customer Retention Rate
• User Experience Metrics: Average Transaction Speed, Error Rate

Embedded Payments Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

Embedded Payments Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Embedded Payments Market Segmentation by End-Use Markets

• E-commerce & Retail
• Digital Products & Services
• Travel & Hospitality
• Leisure & Entertainment
• Health & Wellness
• Utility Bill Payments
• Other Sectors

Embedded Lending Market Size and Growth Dynamics

• Loan Disbursement Value
• Number of Loans Issued
• Average Loan Size

Embedded Lending Key Metrics

• Credit Quality & Risk Metrics: Delinquency Rate (30/60/90 Days), Approval Rate, Default Rate, Loss Given Default (LGD)
• Monetization & Unit Economics Metrics: Interest Revenue per Loan
• Adoption & Usage Metrics: Repeat Borrowing Rate
• Operational & Platform Efficiency Metrics: Loan Origination Time (TAT), Automation Rate (Instant Decision %)

Embedded Lending Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

Embedded Lending Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Embedded Lending Market Segmentation by Product Types

• Buy Now, Pay Later (BNPL)
• Point-of-Sale (POS) Lending
• Personal Loans
• Gig Worker Income Advances
• Other Loan Types

Embedded Lending Market Segmentation by End-Use Markets

• E-commerce & Retail
• Gig Economy
• Travel & Hospitality
• Healthcare
• Education & EdTech
• Automotive & Mobility
• Other Sectors

Embedded Insurance Market Size and Premium Dynamics

• Gross Written Premium (GWP)
• Number of Policies Issued
• Average Premium per Policy

Embedded Insurance Key Metrics

• Policy & Premium Metrics: Renewal Rate
• Claims & Risk Performance Metrics: Claims Ratio (Loss Ratio), Claim Frequency, Claim Settlement Time, Fraud Rate
• Platform Monetization Metrics: Embedded Insurance Revenue per User (RIU)
• Distribution & Conversion Metrics: Attachment Rate, Quote-to-Bind Conversion Rate, Cross-Sell / Upsell Rate

Embedded Insurance Market Segmentation by Policy Type

• Life Insurance
• Non-Life Insurance (Motor Vehicle, Home/Property, Accident & Health, Others)
• Motor Vehicle
• Home/Property
• Accident & Health

Embedded Insurance Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

Embedded Insurance Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Embedded Insurance Market Segmentation by End-Use Markets

• E-commerce & Retail
• Travel & Hospitality
• Automotive & Mobility
• Healthcare
• Other Sectors

Embedded Banking Market Size and Account Dynamics

• Total Deposits / Inflows
• Account Fee Revenue

Embedded Banking Key Metrics

• Account Metrics: Account Churn Rate
• Risk & Compliance Metrics: Fraudulent Transaction Rate

Embedded Banking Distribution by End-Use Markets

• Gig & Freelance Platforms
• E-commerce & Marketplaces
• Fintech Apps & Neobanks
• Other Platforms

Embedded Investments & Wealth Market Size and User Dynamics

• Total Assets Under Management (AUM)
• Number of Investment Transactions
• Average Investment per User

Embedded Investments & Wealth Key Metrics

• Returns & Performance Metrics: Annualized Portfolio Return
• Retention Metrics: Account Churn Rate

Embedded Investments & Wealth Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

Embedded Investments & Wealth Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Embedded Investments & Wealth Market Segmentation by End-Use Markets

• Fintech & Neobank Apps
• E-commerce & Super Apps
• Gig & Freelancer Platforms
• Other Platforms

Reasons to buy

• Comprehensive KPI Coverage: Access over 100 key performance indicators (KPIs), including transaction value, transaction volume, revenue, and average transaction size.
• Complete Vertical Coverage: Structured datasets across all five embedded finance verticals - payments, lending, insurance, banking, and investments & wealth.
• Granular Market Segmentation: Detailed data by business models (platform-based, enabler, regulatory-entity), distribution models (own vs. third-party platforms), and product types.
• Sector-Level Data Tracking: Coverage across B2C end-use markets such as e-commerce, retail, healthcare, travel & hospitality, utilities, automotive, education, gig economy, and others.
• Operational & Performance Metrics: Provides data on efficiency, quality & risk, monetization, customer behavior, and user experience indicators for a rounded view of market performance.