Latin America 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 Latin America is expected to grow by 9.5% on an annual basis to reach US$38.8 billion by 2025.

The embedded finance market in the region has experienced robust growth during 2021-2025, achieving a CAGR of 13.3%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 6.9% from 2026 to 2030. By the end of 2030, the embedded finance market is projected to expand from its 2024 value of US$35.4 billion to approximately US$50.6 billion.

Key Trends and Drivers Shaping Embedded Finance in Latin America

Embedded finance in Latin America is progressing through distinct, region-specific trends shaped by structural gaps in financial access, mobile-first user behaviors, and regulatory evolution. Whether through embedded credit in marketplaces, the expansion of super apps, or partnership-led B2B ecosystems, the region is witnessing a layered transformation of financial services delivery. Over the next 2-4 years, continued regulatory support, data infrastructure development, and sector-focused innovation are expected to consolidate embedded finance as a critical enabler of digital economic activity across Latin America. However, fragmentation across countries, informal market dependencies, and evolving regulatory oversight will define the pace and depth of this transformation.

Embedded Credit Is Scaling Through E-Commerce and Digital Platforms

• Digital platforms are increasingly embedding credit and financing options directly within customer journeys across Latin America, particularly in e-commerce, ride-hailing, and digital marketplaces. Mercado Libre’s credit arm, Mercado Crédito, extended over USD 3.3 billion in loans in 2023 alone, mainly targeting small businesses and individual consumers purchasing via its platform. Similarly, Rappi has been embedding BNPL (Buy Now, Pay Later) and credit lines for merchants and consumers through its RappiBank joint venture with Banco Davivienda in Colombia and other countries.
• The expansion of digital commerce, combined with limited traditional credit penetration, is driving the shift toward embedded credit models. Latin America's large unbanked and underbanked population - estimated at over 200 million by the Inter-American Development Bank - creates a demand for contextual, real-time financing products that can be integrated into transaction flows. Additionally, partnerships between tech firms and local banks (e.g., Nubank and Creditas) are allowing for risk-sharing and regulatory navigation.
• This trend is expected to intensify across Tier 1 and Tier 2 urban centers, as embedded lending models evolve from short-term consumer credit to include SME working capital, equipment financing, and supply chain credit. However, regulatory scrutiny on digital lending practices, especially regarding interest rates and consumer protection, may slow down unregulated BNPL expansion in the region.

Super Apps Are Driving Convergence of Financial and Lifestyle Services

• Latin American super apps are embedding financial services such as wallets, insurance, and micro-investment features within their core ecosystems. Rappi, Nubank, and PicPay have all moved beyond payments to offer a wider range of embedded finance solutions. For instance, PicPay in Brazil has integrated credit cards, insurance, and cryptocurrency investing into its platform, transforming from a payments app to a broad financial ecosystem.
• High mobile penetration, growing consumer comfort with app-based services, and the need to build user loyalty and stickiness have pushed super apps to bundle financial tools. Players are leveraging payments as a gateway to cross-sell more complex financial products. The rising cost of user acquisition in Latin America also incentivizes financial-service layering on existing high-frequency platforms like mobility or food delivery.
• Super app-driven embedded finance is expected to stabilize in Brazil and Colombia, with deeper product integration and cross-border expansion. Newer markets like Peru and Ecuador may see scaled rollouts as mobile-first platforms replicate successful models. The ability to embed services seamlessly while managing regulatory complexity will be key to long-term sustainability.

Embedded Payments Are Expanding Across B2B and Informal Commerce Segments

• Embedded payments are moving beyond consumer apps into B2B platforms, informal retail networks, and gig economy ecosystems. In Brazil, dotbank and Zoop are embedding white-labeled payment solutions into marketplaces and ERP systems, enabling small businesses to accept digital payments and reconcile transactions. In Mexico, Klar and Konfío are integrating payment capabilities for SMEs in underserved verticals like logistics and local services.
• The Latin American economy is heavily reliant on micro and small businesses, many of which have historically operated in cash. COVID-19 accelerated digital payment adoption, and embedded models are now filling gaps where traditional POS infrastructure is lacking. Government push for financial inclusion (e.g., Pix in Brazil) and merchant digitization programs are creating tailwinds for adoption of embedded payment rails.
• The trend is likely to deepen in Brazil and Mexico, where regulatory infrastructure (e.g., open finance, real-time payments) is more mature. Expansion into Argentina, Chile, and Colombia will depend on integration of informal commerce into digital platforms. Embedded payments are expected to act as a foundational layer for broader financial service embedding such as credit scoring and insurance.

Regulatory Momentum Is Enabling Embedded Finance Infrastructure Growth

• Regulatory authorities in Latin America are creating frameworks that support open finance, digital onboarding, and non-bank financial innovation. Brazil’s Open Finance initiative, coordinated by the Central Bank, and Mexico’s Fintech Law are two landmark frameworks that enable secure sharing of financial data and development of embedded offerings. Colombia is also advancing its Open Finance plans through the Ruta Regulatoria framework.
• Regulators are seeking to enhance competition, increase financial inclusion, and reduce systemic risks in cash-heavy economies. These objectives align with embedded finance platforms that promote disintermediation and user-centric models. Furthermore, the rise of fintechs, digital banks, and non-traditional lenders has created pressure to modernize outdated financial regulations.
• Regulatory clarity and API standardization are expected to stabilize and support infrastructure-led growth in Brazil, Colombia, and Mexico. However, data protection rules and cross-border regulatory inconsistencies may pose challenges. Market participants are expected to increasingly invest in compliance infrastructure, paving the way for embedded finance platforms to scale more securely.

Partnership-Led Ecosystem Models Are Emerging Across Verticals

• Embedded finance in Latin America is being driven by verticalized partnerships between tech platforms, banks, and fintech infrastructure providers. For example, MovilePay (iFood’s financial services arm) has partnered with banking and payment infrastructure firms to offer working capital loans and instant payouts to restaurants and couriers. In Mexico, Kueski has collaborated with online merchants to offer embedded BNPL at checkout.
• The absence of a dominant embedded finance enabler has resulted in highly collaborative ecosystems where localized players combine capabilities - distribution, credit risk, payments, compliance - through APIs. Banks often provide regulatory cover, while fintechs and platforms manage user experience and distribution. Sector-specific needs (e.g., agriculture, mobility, education) are also driving custom partnership structures.
• These partnership-led models are expected to intensify, with greater specialization in infrastructure provision (e.g., credit scoring, KYC-as-a-service, payout orchestration). Fragmented markets like Argentina and Peru may see a surge in local alliances, while regional platforms may start to consolidate services. The complexity of orchestration, however, may limit scalability in the absence of unified standards.

Competitive Landscape in the Embedded Finance Market in Latin America

The embedded finance competitive landscape in Latin America is marked by platform-led verticalization, deepening partnerships, and growing infrastructure enablers. While Brazil and Mexico lead in terms of ecosystem maturity and competitive intensity, markets like Colombia, Chile, and Argentina are gaining traction through localized innovation and regulatory shifts. The rise of API-first players, bank-fintech collaborations, and infrastructure consolidation is reshaping how financial products are embedded and distributed. Over the next 2-4 years, the competitive dynamics will continue to evolve - fueled by regulatory enablement, demand from non-financial sectors, and the emergence of cross-border infrastructure providers. However, uneven regulatory progress and localization complexities will remain critical factors shaping entry strategies and competitive positioning across the region.

Platform-Led Models Are Driving Competitive Differentiation Across Verticals

• The embedded finance landscape in Latin America is characterized by vertical integration from large digital platforms that are embedding financial services into their core offerings. E-commerce, delivery, and mobility players are increasingly competing with digital banks and fintechs by owning both distribution and embedded financial products. For example, Mercado Libre operates its own payment infrastructure (Mercado Pago) and credit arm (Mercado Crédito), creating a closed-loop embedded finance system that spans payments, credit, and insurance across Brazil, Argentina, and Mexico.
• Major platforms such as Mercado Libre, Rappi, iFood, Nubank, and PicPay are competing both on product breadth and integration depth. These firms are embedding finance into logistics, retail, and lifestyle verticals. Additionally, infrastructure enablers such as Dock, Pomelo, Swap, and Tribal are enabling back-end APIs, regulatory cover, and KYC/AML modules, which allow smaller platforms and merchants to offer financial products without building internal stacks.
• Competitive intensity is expected to remain high over the next 2-4 years, particularly in Brazil and Mexico where infrastructure and demand are more mature. However, gaps still exist in countries like Peru and Ecuador, where fewer full-stack players operate and localized fragmentation persists.

New Entrants Are Targeting Underpenetrated Segments with API-First Strategies

• A new wave of API-first fintech infrastructure providers is entering the Latin American market, targeting niche use cases in credit, compliance, and cross-border payments. Examples include Belvo, which offers open finance APIs across Mexico, Brazil, and Colombia; Klarna’s regional entry through BNPL partnerships; and Swap, which enables white-labeled banking services for startups and marketplaces in Brazil.
• These players are capitalizing on regulatory tailwinds like Brazil’s Open Finance and Mexico’s Fintech Law to provide compliance-ready APIs that reduce time-to-market for embedded finance deployment. Several are offering pre-integrated modules for KYC, fraud detection, and settlement, aiming to lower the entry barrier for non-financial companies.
• New entrants are likely to intensify competition in Tier 2 and Tier 3 geographies and underbanked verticals such as agriculture, transport, and informal commerce. However, fragmentation and localization requirements may slow regional scaling for newer firms without deep local partnerships.

Regulatory Momentum Is Influencing Market Entry and Operational Models

• Regulatory environments across Latin America are evolving in ways that directly impact competition. Brazil has implemented Open Finance protocols that allow for secure financial data sharing, enabling more embedded finance innovation. Mexico’s Fintech Law continues to serve as a blueprint for digital financial services licensing. In 2024, Colombia made progress toward formalizing its Open Finance strategy through the Ruta Regulatoria roadmap.
• These developments create an uneven playing field - markets like Brazil and Mexico offer clearer rules for embedded finance, while countries like Argentina and Peru still operate under fragmented or unclear regulations. The requirement for local licensing or partnerships with regulated entities adds complexity for cross-border players.
• Regulatory alignment across countries is unlikely in the near term. However, Brazil, Mexico, and Colombia are expected to continue leading in licensing innovation, making them the most competitive markets for embedded finance players. Countries with slower regulatory development may see reduced entry by foreign players, reinforcing local dominance.

The Market Is Heading Toward Consolidation and Infrastructure-Led Competition

• As embedded finance scales, infrastructure players are gaining more influence, providing the compliance, orchestration, and operational layers that enable front-end platforms to scale offerings. Firms like Dock (cards and banking-as-a-service), Pomelo (multi-country card issuance and core banking), and Belvo (open banking) are becoming central to the competitive landscape.
• Over the next 2-4 years, consolidation is expected to increase, especially in infrastructure and compliance-heavy segments. Players with regional scale and robust infrastructure capabilities will likely emerge as core enablers, while smaller point-solution providers may either consolidate or focus on niche verticals and geographies.

This report provides a detailed data-centric analysis of the embedded finance industry in Latin America, 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 5 reports, covering 750+ tables and 950+ figures:

1. Latin America Embedded Finance Business and Investment Opportunities Databook
2. Argentina Embedded Finance Business and Investment Opportunities Databook
3. Brazil Embedded Finance Business and Investment Opportunities Databook
4. Colombia Embedded Finance Business and Investment Opportunities Databook
5. Mexico 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.