According to the publisher, the Embedded Finance industry in the region is expected to grow by 36.4% on annual basis to reach US$ 13.43 billion in 2024.
The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 27.5% during 2024-2029. The embedded finance revenues in the region will increase from US$ 13.43 billion in 2024 to reach US$ 45.22 billion by 2029.
The Middle East and Africa (MEA) region is experiencing a surge in embedded finance adoption. Embedded finance integrates financial services like payments, lending, and insurance within non-financial platforms. This creates a seamless user experience and removes friction from traditional financial processes.
Market Drivers of Middle East & Africa Embedded Finance Market
High smartphone penetration and young, tech-savvy population: The MEA region boasts a rapidly growing smartphone user base, particularly among young adults. This creates a fertile ground for adopting mobile-first financial solutions. According to GSMA Intelligence, there will be an estimated 535 million unique mobile subscribers in the MEA region by 2025, representing a penetration rate of 65%.
Underbanked population: A significant portion of the MEA population remains unbanked or underbanked. Embedded finance offers financial inclusion by providing access to financial services through familiar platforms. The World Bank estimates that 31% of adults in the Middle East and North Africa (MENA) region and 41% of adults in Sub-Saharan Africa lack an account at a formal financial institution.
Growing e-commerce and on-demand services: The rise of e-commerce and on-demand services like ride-hailing creates a natural fit for embedded finance solutions, offering seamless payment and financing options within the platform. According to Jumia, a leading e-commerce platform in Africa, the continent's online sales are expected to reach $180 billion by 2025.
Increased focus on financial inclusion: Governments in the MEA region is actively promoting financial inclusion initiatives. Embedded finance aligns with these goals by providing alternative access to financial services. The World Bank's Global Findex Database reports that the percentage of adults with a mobile money account in Sub-Saharan Africa has grown from 21% in 2,014 to 34% in 2021.
Key Trends of Middle East & Africa Embedded Finance Market
- Rise of Buy Now, Pay Later (BNPL): BNPL solutions are gaining traction, allowing consumers to spread purchase costs across installments. This trend is expected to continue as embedded finance facilitates integration of BNPL options within various platforms.
- Open Banking adoption: Open Banking regulations are gradually being implemented in some MEA countries. This fosters collaboration between financial institutions and fintech companies, driving innovation in embedded finance solutions.
- Emerging technologies: Integration of technologies like Artificial Intelligence (AI) and Blockchain can personalize financial offerings and enhance security within embedded finance solutions.
Major Deals and Innovation of of Middle East & Africa Embedded Finance Market
- Qashio and CredibleX (2024): Qashio and CredibleX have partnered on an initiative to provide financing to businesses in the Middle East and North Africa (MENA) region. The new Qashio Financing solution provides immediate approvals and disbursements, competitive rates, and a user-friendly application process for Qashio’s customers.
- Souqalmal (MENA) Partnership (2023): Souqalmal, a price comparison platform in the Middle East and North Africa (MENA) region, partnered with several banks in 2023 to offer embedded loan options within their platform. This allows users to compare prices and seamlessly apply for financing for desired products directly through Souqalmal, streamlining the shopping experience.
- Tabby Funding (UAE, 2024): Tabby, a leading Buy Now, Pay Later (BNPL) provider in the UAE, raised a significant $950 million in funding in 2024. This substantial investment highlights investor confidence in the potential of embedded finance, particularly in the BNPL segment, within the MEA region.
- In 2024, OmniRetail plans embedded finance expansion in Nigeria, Ghana, Côte d’Ivoire.
- In 2023, CredibleX, MENA's pioneering embedded finance platform, has announced its launch after being granted regulatory licenses from the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM). These licenses provide a robust regulatory framework for its launch, bringing confidence and trust to CredibleX's partners and customers. It has also announced partnerships with ADGM as the first fintech partner of its SME financing platform, Numou; as well as with partners in FMCG and financial services.
Competitive Landscape:
The MEA embedded finance space is witnessing a rise in competition, with established financial institutions partnering with fintech startups to leverage their expertise. Global tech giants are also eyeing the market, offering embedded finance solutions alongside their core services.
Established Financial Institutions:
- Standard Bank (South Africa): A leading African bank offering embedded finance solutions for businesses, including payment processing and merchant cash advance options.
- Emirates NBD (UAE): A prominent bank in the UAE that has partnered with fintech companies to offer embedded financial services, including BNPL solutions and in-app payments.
- National Bank of Egypt (Egypt): A major player in the Egyptian market, exploring embedded finance solutions through partnerships with e-commerce platforms and telecommunications companies.
Fintech Startups:
- Thriive (Kenya): A Kenyan fintech startup providing embedded financial solutions for businesses, focusing on micro-loans, payments, and savings accounts.
- Telda (South Africa): A South African fintech company offering embedded insurance solutions for on-demand services and e-commerce platforms.
- Mpesa (Kenya & East Africa): While not strictly an embedded finance player, Mpesa's mobile money platform serves as a foundation for embedded financial services in the region, facilitating payments and potentially integrating other financial products in the future.
This report provides a detailed data-centric analysis of the embedded finance industry, covering lending, insurance, payment, wealth and asset based finance sectors market opportunities and risks across a range of different sectors. With over 75+ KPIs at the country level, this report provides a comprehensive understanding of embedded finance market dynamics, market size and forecast.
It breaks down market opportunities by type of business model, consumer segment, and distribution models. In addition, it also provides detailed information across a range of different segment in each sector of embedded finance. KPI revenue help in getting an in-depth understanding of end market dynamics.
The 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 9 reports, covering 800+ tables and 1000+ figures:
1. Africa & Middle East Embedded Finance Business and Investment Opportunities
2. Egypt Embedded Finance Business and Investment Opportunities
3. Israel Embedded Finance Business and Investment Opportunities
4. Kenya Embedded Finance Business and Investment Opportunities
5. Nigeria Embedded Finance Business and Investment Opportunities
6. Saudi Arabia Embedded Finance Business and Investment Opportunities
7. South Africa Embedded Finance Business and Investment Opportunities
8. Turkey Embedded Finance Business and Investment Opportunities
9. United Arab Emirates Embedded Finance Business and Investment Opportunities
Scope
This report provides regional insights, along with an in-depth data centric analysis of the Embedded Finance industry in the Asia Pacific, covering 50+ KPIs for each region and country (650+ charts and 500+ tables in all). Below is a summary of key market segments:
Embedded Finance Market Size and Forecast
Embedded Finance by Key Sectors
- Retail
- Logistics
- Telecommunications
- Manufacturing
- Consumer Health
- Others
Embedded Finance by Business Model
- Platforms
- Enabler
- Regulatory Entity
Embedded Finance by Distribution Model
- Own Platforms
- Third Party Platforms
Embedded Insurance Market Size and Forecast
Embedded Insurance by Industry
- Embedded Insurance in Consumer Products
- Embedded Insurance in Travel & Hospitality
- Embedded Insurance in Automotive
- Embedded Insurance in Healthcare
- Embedded Insurance in Real Estate
- Embedded Insurance in Transport & Logistics
- Embedded Insurance in Others
Embedded Insurance by Consumer Segments
- B2B
- B2C
Embedded Insurance by Type of Offering
- Embedded Insurance in Product Segment
- Embedded Insurance in Service Segment
Embedded Insurance by Business Model
- Platforms
- Enabler
- Regulatory Entity
Embedded Insurance by Distribution Model
- Own Platforms
- Third Party Platforms
Embedded Insurance by Distribution Channel
- Embedded Sales
- Bancassurance
- Broker’s/IFA’s
- Tied Agents
Embedded Insurance by Insurance Type
- Embedded Insurance in Life Segment
- Embedded Insurance in Non-Life Segment
Embedded Insurance in Non-Life Segment
- Motor Vehicle
- Fire and Property
- Accident and Health
- General Liability
- Marine, Aviation and other Transport
- Other
Embedded Lending Market Size and Forecast
Embedded Lending by Consumer Segments
- Business Lending
- Retail Lending
Embedded Lending by B2B Sectors
- Embedded Lending in Retail & Consumer Goods
- Embedded Lending in IT & Software Services
- Embedded Lending in Media, Entertainment & Leisure
- Embedded Lending in Manufacturing & Distribution
- Embedded Lending in Real Estate
- Embedded Lending in Other
Embedded Lending by B2C Sectors
- Embedded Lending in Retail Shopping
- Embedded Lending in Home Improvement
- Embedded Lending in Leisure & Entertainment
- Embedded Lending in Healthcare and Wellness
- Embedded Lending in Other
Embedded Lending by Type
- BNPL Lending
- POS Lending
- Personal Loans
Embedded Lending by Business Model
- Platforms
- Enabler
- Regulatory Entity
Embedded Lending by Distribution Model
- Own Platforms
- Third Party Platforms
Embedded Payment Market Size and Forecast
Embedded Payment by Consumer Segments
- B2B
- B2C
Embedded Payment by End-Use Sector
- Embedded Payment in Retail & Consumer Goods
- Embedded Payment in Digital Products & Services
- Embedded Payment in Utility Bill Payment
- Embedded Payment in Travel & Hospitality
- Embedded Payment in Leisure & Entertainment
- Embedded Payment in Health & Wellness
- Embedded Payment in Office Supplies & Equipment
- Embedded Payment in Other
Embedded Payment by Business Model
- Platforms
- Enabler
- Regulatory Entity
Embedded Payment by Distribution Model
- Own Platforms
- Third Party Platforms
Embedded Wealth Management Market Size and Forecast
Asset Based Finance Management Industry Market Size and Forecast
Asset Based Finance by Type of Asset
- Hard Assets
- Soft Assets
Asset Based Finance by End Users
- SME’s
- Large Enterprises
Reasons to buy
- In-depth Understanding of Embedded Finance Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028).
- Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
- Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate embedded finance strategy; assess market specific key trends, drivers, and risks in the industry.
- Get Sector Insights: Drawing from proprietary survey results, this report identifies opportunities across embedded lending, embedded insurance, embedded finance, and embedded wealth sectors.
- Get insights at segment level, by the distribution model and by business model in key embedded finance segments
- Insights into the asset based finance market size and by type of assets, by end users.
Table of Contents
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 1125 |
| Published | April 2024 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value ( USD | $ 13.4 Billion |
| Forecasted Market Value ( USD | $ 45.2 Billion |
| Compound Annual Growth Rate | 27.5% |
| Regions Covered | Africa, Middle East |
