Brazil Embedded Finance Business and Investment Opportunities Databook - 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q1 2024 Update

According to the publisher, the Embedded Finance industry in Brazil is expected to grow by 37.3% on annual basis to reach US$ 4.31 billion in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 26.2% during 2024-2029. The embedded finance revenues in the country will increase from US$ 4.31 billion in 2024 to reach US$ 13.82 billion by 2029.

Brazil has witnessed a rapid increase in digitalization, driven by the growing adoption of smartphones and internet connectivity. With over 134 million smartphone users and approximately 149 million internet users as of 2021, there is a vast market for embedded finance solutions. The proliferation of digital channels provides a conducive environment for the expansion of embedded finance offerings.

The substantial growth the embedded insurance space has experienced in Brazil can be primarily attributed to the growing number of insurtech firms emerging in the country. The number of insurtech firms has reached more than 200 in 2020, from less than 100 in 2,017. The rising popularity of embedded insurance policies is pushing Brazilian start-ups to leverage this rapid growth by raising funds. Capital infusion in the embedded insurance sector is projected to support the country's overall insurance penetration rate.Growth Driver in Brazil: Brazil boasts a high smartphone penetration rate, creating a fertile ground for mobile-based embedded finance solutions. The number of smartphone users in Brazil surpassed 155 million in 2023, indicating a vast market for digital financial services.

Expanding Fintech Ecosystem: Brazil's fintech ecosystem has been rapidly expanding, with a surge in the number of startups offering innovative financial products and services. According to Statista, Brazil ranked third globally in terms of the number of fintech startups in 2020, with over 1,100 active companies. This vibrant ecosystem fosters competition and drives the development of embedded finance solutions tailored to the needs of Brazilian consumers and businesses.

Financial Inclusion Initiatives: Despite advancements in digital banking, a significant portion of Brazil's population remains underserved by traditional financial institutions. Embedded finance has the potential to bridge this gap by providing inclusive and accessible financial services to underserved communities. By leveraging technologies such as mobile banking and digital wallets, embedded finance solutions can reach unbanked and underbanked populations, driving financial inclusion efforts in the country.

Major Innovation and Partnership in Brazil:

Market players are increasingly combining their expertise and developing new embedded payments solutions to capture the massive untapped population in Brazil.

In Jul 2023, Card issuer Marqeta entered Latin America’s largest FinTech market with its expansion into Brazil. The expansion is happening via a partnership with Latin American banking-as-a-service (BaaS) platform Fitbank and network certification with Visa. The expansion means Marqeta’s platform is operational in more than 40 counties, according to the release. With Fitbank, Marqeta’s customers get access to a platform licensed by Brazil’s central bank and directly integrated with PIX, the country’s real-time payments system.

In February 2022, VEF invested USD 12.2 Mn in Gringo, Brazil’s leading ‘super-app’ for driver, serving over 5 Mn drivers. VEF led Gringo’s USD 34 Mn Series B round with co-investment from Piton Capital, ICU, and participation from existing investors Kaszek, GFC and OneVC.

In November 2020, Brazil-based fintech company EBANX and ride-hailing app Uber announced a partnership on PIX, a payment system launched by the Brazilian government. Under this partnership, EBANX will address Uber clients' needs of payments, localization, and good user experience through their solutions. Since a large population of Brazil does not have a bank account, Uber's clients are anticipated to benefit from the newly introduced instant payment platforms, and EBANX is expected to use Uber's existing client base.

• In August 2020, online marketplace company MercadoLibre Inc. (MELI) launched a product to insure cell phones in Brazil. The insurance policy allows users to insure their smartphone screens or buy a complete robbery or theft coverage.

Launched in São Paulo in 2019, Dinie is a pioneering fintech that offers embedded lending and digital working capital to MSMEs and merchants on e-commerce platforms. And in a country where less than 5% of startups are founded by women, Dinie is 100% women-led.

Looking ahead, the Brazilian embedded finance market is poised for continued expansion, driven by various above listed factors and the increasing demand for convenient and accessible financial services.

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.

Scope

This report provides in-depth, data-centric analysis of Embedded Finance industry in Brazil. Below is a summary of key market segments:

Brazil 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

Brazil 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

Brazil 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

Brazil 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

Brazil Embedded Wealth Management Market Size and Forecast

Brazil 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.