Africa 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

Key Trends and Drivers Shaping Embedded Finance in Africa

Mobile Wallets Are Becoming Gateways to Embedded Finance Ecosystems

• Mobile money platforms like M-Pesa (Kenya), MoMo (Ghana), and EcoCash (Zimbabwe) are evolving beyond payments to become comprehensive embedded finance ecosystems. These platforms now facilitate access to savings, loans, insurance, and even investment products directly within mobile interfaces, blurring the line between telecom-led payments and financial services. For example, M-Pesa’s integration with platforms like Hustler Fund in Kenya has created an embedded microcredit channel tied to mobile usage patterns.
• The large unbanked population, high mobile penetration and the dominance of telcos in financial services are primary enablers. Partnerships between mobile network operators and fintechs are accelerating the expansion of embedded financial services. Regulatory easing on mobile money agents has also helped widen the reach of mobile-based financial services.
• This trend is expected to intensify as telco-fintech convergence deepens, particularly in East and West Africa. By 2027, mobile money players are likely to anchor embedded finance growth in rural and underserved areas, especially as regulators support interoperable digital finance ecosystems. The expansion into credit scoring, insurance, and merchant lending through mobile wallets will be a key frontier.

Embedded Credit Solutions Are Expanding Through Digital Retail and Agritech Platforms

• Embedded credit offerings are increasingly integrated into digital retail platforms, agritech ecosystems, and B2B commerce platforms. For example, Kenyan agritech platform Apollo Agriculture offers smallholder farmers bundled solutions that include input financing, crop insurance, and advisory services all embedded within a mobile platform. Similarly, South Africa’s Yoco and Nigeria’s Paystack are enabling credit access for merchants via embedded working capital tools.
• MSME financing gaps and lack of collateral have forced a pivot to transaction data-based underwriting. As digital commerce platforms gain transaction-level visibility, they are embedding credit offerings using alternative credit scoring and pay-as-you-sell models. Supportive donor funding (e.g., via Mastercard Foundation or FSD Africa) and API-enabled infrastructure from firms like Stitch and OnePipe have enabled seamless credit integration.
• The trend will intensify, especially in Kenya, Nigeria, Ghana, and South Africa, as embedded credit products become a default financing route for small enterprises. We expect wider adoption of invoice factoring, revenue-based lending, and inventory credit all embedded within sector-specific platforms (e.g., agritech, informal retail, logistics). However, risk management frameworks will need to evolve in parallel to avoid repayment challenges.

Digital Insurtech Players Are Embedding Microinsurance Into Everyday Platforms

• Microinsurance products are increasingly embedded into telco, e-commerce, and gig economy platforms. For instance, BIMA and aYo (a subsidiary of MTN) provide embedded life and health insurance to mobile users in markets like Ghana, Uganda, and Côte d’Ivoire. Gig platforms like SafeBoda (Uganda) and Lynk (Kenya) are also embedding accident and health coverage for their users.
• Low insurance penetration across the continent and the need for frictionless distribution have catalyzed embedded microinsurance. Digital platforms with frequent customer interactions offer ideal distribution channels, while mobile money integration supports low-premium, high-volume models. Regulatory support for digital distribution and simplified Know Your Customer (KYC) protocols are further reducing entry barriers.
• This trend is expected to stabilize and expand in scope. While most current offerings are limited to health and life insurance, we anticipate expansion into agriculture, gig worker protection, and embedded funeral benefits. Pricing innovation, such as subscription-based or usage-based premiums, will play a crucial role in deepening uptake across income segments.

Fintech-Telco and Bank-Startup Partnerships Are Reshaping Embedded Finance Delivery

• Cross-sector partnerships are defining embedded finance strategy in Africa, enabling banks and telcos to plug fintech modules into existing ecosystems. Traditional financial institutions lack agility but have licensing and compliance infrastructure, while fintechs and tech startups offer modular, API-first solutions. Embedded finance partnerships allow both to scale faster, reach new segments, and test new business models. Increasing pan-African interest from development finance institutions (e.g., IFC’s stake in Wave) is also catalyzing these deals.
• The pace of strategic alliances is expected to accelerate, with embedded finance increasingly delivered as a co-branded or white-labeled service. Banks may reposition themselves as platform service providers, while fintechs will deepen their role as infrastructure enablers. Regional consolidation and expansion into francophone and lusophone Africa will also gain traction.

Regulatory Sandboxes and Open Finance Initiatives Are Laying Infrastructure Foundations

• Regulatory frameworks are shifting from reactive oversight to enabling embedded finance ecosystems. Sandboxes, such as those in Kenya (Central Bank), Nigeria (SEC + CBN), and Rwanda (National Bank), are allowing experimentation with embedded lending, insurance, and cross-border payments. Additionally, countries like Nigeria and Egypt are initiating open banking and open finance regulations.
• Regulators recognize the role of embedded finance in improving financial inclusion and are designing controlled environments to test such innovations. The need to manage systemic risk, ensure consumer protection, and formalize informal finance has also pushed regulators to support embedded models. Global partnerships (e.g., with BIS Innovation Hub or AFI) are providing technical support.
• This trend is expected to intensify, with formal open finance regimes expected in key markets like Nigeria, South Africa, and Egypt. Clearer licensing for embedded lenders, standardized APIs, and data privacy frameworks will unlock new embedded finance use cases, especially in pensions, health savings, and SME working capital. Regulatory harmonization across regional blocs like SADC or ECOWAS may also gain momentum.

Competitive Landscape in the Embedded Finance Market in Africa

Competitive Intensity Is Rising Across Payment, Credit, and Insurance Verticals

• Embedded finance in Africa is characterized by rapid growth and uneven penetration across markets. East Africa (notably Kenya, Uganda) and West Africa (Nigeria, Ghana) are seeing high activity in embedded payments and credit, while Southern Africa shows growing traction in insurtech and embedded digital wallets. Embedded finance remains fragmented, with competition between telcos, fintechs, banks, and B2B enablers vying for control of distribution layers.
• Fintech-focused investment especially in Nigeria, Kenya, Egypt, and South Africa has intensified competitive pressures. African startup funding went to fintechs, many of which are building embedded models in commerce, logistics, and agriculture. Vertical competition is emerging, with insurtechs like Lami Technologies (Kenya) and Turaco (Nigeria/Kenya) targeting API-based integrations with gig platforms, while B2B credit enablers like Payhippo and Float are embedding working capital tools across retail networks.
• Competitive intensity will increase as pan-African fintechs scale cross-border operations and infrastructure players deepen reach into offline and informal sectors. Markets like Ghana, Côte d’Ivoire, and Zambia are likely to witness increased entrant activity as digital rails mature and regulatory clarity improves.

Telcos, Banks, and Fintechs Are Dominating Embedded Finance Use Cases

• Mobile network operators like Safaricom (Kenya), MTN (multiple markets), Airtel Africa, and Orange Money (West Africa) continue to dominate embedded finance through their mobile wallets. Their ownership of customer data, KYC infrastructure, and daily transaction flows gives them a strong advantage in launching embedded credit, insurance, and investment services.
• Fintechs such as Flutterwave (Nigeria), Paystack (Nigeria, now owned by Stripe), MFS Africa (pan-African infrastructure), and Cellulant (multi-country PSP) serve as core infrastructure providers powering embedded payments and APIs for retail and enterprise partners. Agritech and gig-economy platforms like Apollo Agriculture (Kenya) and Max.ng (Nigeria) are embedding financing and insurance into their user journeys, enabled by third-party infrastructure or in-house risk models.
• Players like Churpy (Kenya) are embedding invoice reconciliation and receivables automation into enterprise platforms, while Asaak (Uganda) is embedding motorbike and smartphone financing into ride-hailing platforms. These newer entrants are often hyper-focused on niche sectors and use embedded finance to gain quick adoption via ecosystem linkages.

Strategic Partnerships and Acquisitions Are Shaping Ecosystem Dominance

• In March 2024, MTN and Mastercard deepened their partnership to expand embedded digital financial services across 13 markets, including virtual cards and merchant financing. MFS Africa acquired GTP (Global Technology Partners) in 2023 and later rebranded to Onafriq in 2024 to consolidate its embedded card issuing capabilities.
• Fintechs are increasingly embedding their infrastructure into vertical platforms to reach new audiences. Partnerships between POS players (e.g., Yoco in South Africa) and financing APIs are driving embedded merchant credit in retail and hospitality sectors.

Licensing Shifts and Sandbox Frameworks Are Reshaping Market Entry Barriers

• Regulators in Nigeria (CBN), Kenya (CBK), and Egypt (FRA) are now differentiating licensing tiers for embedded finance providers, including digital lenders, insurtech distributors, and payment facilitators. Nigeria launched its open banking regulation in March 2024, enabling consent-based data sharing that supports embedded finance use cases. Kenya’s CBK Digital Credit Providers licensing process has formalized operations of embedded lenders, requiring minimum capital and consumer protection standards.
• More markets including Rwanda, Mauritius, and Ghana have introduced or expanded regulatory sandboxes to enable fintechs to test embedded finance models. The focus has been on alternative credit scoring, embedded health savings, and microinsurance distribution through telcos. These frameworks are beginning to standardize expectations across markets and offer lower-risk testing environments for new entrants.

Cross-Border Expansion and Infrastructure Consolidation Will Shape the Future Landscape

• Consolidation of infrastructure providers and cross-border expansion of fintechs will drive structural shifts in the competitive landscape. MFS Africa’s transformation into Onafriq reflects a broader trend toward becoming all-in-one embedded finance enablers with reach across payments, cards, and credit. Meanwhile, the African Continental Free Trade Area (AfCFTA) is expected to encourage more regional expansions and cross-market collaborations, especially in Francophone West Africa.
• API standardization and interoperable platforms will allow ecosystem players to scale embedded finance models without duplicating infrastructure. Open finance regulations emerging in Nigeria, Kenya, and South Africa will drive competition from tech-driven enablers who leverage consented data flows for embedded credit, insurance, and savings. The evolution of domestic real-time payment rails, such as PAPSS (Pan-African Payment and Settlement System), may also enable smoother integration of embedded financial flows across borders.

This title is a bundled offering, combining the following 5 reports, covering 750+ tables and 950+ figures:

Scope

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.