Spain 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 Spain

Embedded Lending Is Expanding Across E-Commerce and B2B Segments

• Embedded lending is gaining traction in Spain, particularly across consumer-facing e-commerce platforms and B2B marketplaces. Spanish fintechs such as Pagantis (now part of Afterpay) and Klarna Spain have supported the growth of buy-now-pay-later (BNPL) offerings within retail and travel platforms. Meanwhile, B2B-focused platforms like Kaleidoscope and November Five have begun offering financing modules for SMEs embedded within procurement and accounting systems.
• High digital penetration and a post-pandemic push toward online consumption have driven demand for instant credit solutions at the point of transaction. In the B2B space, cash flow gaps among SMEs - combined with the government’s digitalization push through Spain’s “Digital Kit” program - have created new demand for embedded credit within ERP and supply chain tools. Open banking regulation (under PSD2) has also lowered the barriers for integration by enabling real-time credit risk assessment.
• The embedded lending trend is expected to intensify, with B2B credit and deferred invoice solutions (BNPL for SMEs) seeing accelerated uptake. Traditional banks such as CaixaBank and BBVA may expand APIs to support third-party embedded finance use cases, while neobanks and fintechs will continue to partner with digital platforms for distribution. Consolidation among BNPL providers is also likely, driven by margin pressures and evolving EU-wide credit regulation.

Insurtechs and Banks Are Embedding Microinsurance in Mobility, Travel, and Gig Platforms

• Embedded microinsurance offerings are growing in Spain, particularly through mobility platforms (e.g., car sharing, e-scooters), travel booking apps, and gig economy platforms. Wefox Spain, Bdeo, and Coverfy are partnering with digital platforms to offer on-demand insurance for accidents, property loss, and health.
• The growth of the sharing economy and digital mobility platforms (e.g., Cabify, Zity) has necessitated lightweight, modular insurance products. Insurtechs are using AI-powered underwriting to tailor products to micro-use cases. Regulatory facilitation by the Dirección General de Seguros y Fondos de Pensiones (DGSFP) has supported experimentation with digital insurance licensing and API-based distribution models.
• The embedded insurance space will likely stabilize and diversify, with more digital platforms offering insurance as a bundled or optional service. Gig workers in Spain, particularly in logistics and delivery, are expected to drive demand for embedded health and liability insurance, potentially prompting legislative interest in mandatory coverage. More insurers are expected to offer APIs for white-labeling microinsurance products into vertical apps.

Embedded Payments Are Becoming Integral to Retail, Mobility, and Municipal Platforms

• Embedded payment infrastructure is expanding across digital-first platforms in sectors such as retail, urban mobility, and municipal services. Platforms like Glovo and Wallapop have integrated end-to-end payment and wallet capabilities, while Verse and Bizum have scaled peer-to-peer payments into social commerce contexts. Municipal governments (e.g., Barcelona and Madrid) are piloting embedded payments for local tax collection and public transport services.
• Consumer demand for frictionless, in-app transactions and the widespread adoption of QR and NFC technologies are key enablers. Spain’s banking sector - through Bizum, a bank-led initiative - has actively supported interoperable embedded payments. Additionally, open banking standards and the gradual rollout of instant SEPA payments have enabled seamless integration across platforms.
• Embedded payments are expected to become the default in digital service delivery. Public sector adoption will rise, especially for transport and smart city payments. There is also likely to be increased participation from large traditional players such as CaixaBank and Santander, who are exploring embedded finance as a distribution mechanism via fintech partnerships.

Rise of Vertical Platforms Is Accelerating Sector-Specific Embedded Finance Use Cases

• Spain is witnessing a rise in vertical SaaS and marketplace platforms that embed financial products tailored to specific industries. For example, Jeff (a wellness and laundry services platform) embeds payments and lending tools for franchise partners, while Factorial offers HR tech with payroll financing and insurance. In agriculture, platforms like Agroptima are exploring embedded payments and crop insurance.
• Sector-focused platforms are seeking to deepen user engagement and retention by embedding relevant financial products. These platforms also have better access to transaction and behavioral data, which supports underwriting and contextual product design. Additionally, Spain’s ecosystem of early-stage SaaS startups and digital marketplaces is increasingly

• Embedded finance in vertical platforms will deepen, with products evolving from basic payments to financing, insurance, and even treasury services. New partnerships between fintech infrastructure providers and vertical SaaS platforms are expected. As this trend matures, regulators may look to segment supervisory responsibilities based on sector-specific risk exposure.

European Digital Identity and Data Portability Initiatives Are Enabling Embedded Finance Innovation

• Spain is aligning with broader European efforts around digital identity and data portability, which are creating foundational infrastructure for embedded finance. The planned rollout of the EU Digital Identity Wallet and the Data Governance Act (DGA) is expected to enable new forms of consent-based financial data sharing across apps and platforms.
• EU-level regulatory developments - such as the Digital Markets Act (DMA) and Data Act - are designed to open access to platform data and user credentials. Spain’s Digital Spain 2026 strategy, supported by the NextGenerationEU fund, is funding digital identity infrastructure and eIDAS-compliant systems. This is encouraging fintechs and banks to develop embedded finance offerings with user-controlled data portability.
• These infrastructure shifts will catalyze innovation in embedded identity-linked services such as credit scoring, KYC (Know Your Customer), and cross-platform payments. Spain is likely to become a testbed for regulated embedded finance solutions that leverage interoperable identity and consent frameworks. Adoption may be gradual, but groundwork laid in 2024-2026 will determine the pace of scale-up post-2027.

Competitive Landscape in the Embedded Finance Market in Spain

Competitive Intensity Is Rising Across Fintech-Platform-Bank Collaboration Models

• The embedded finance market in Spain is experiencing moderate-to-high competitive intensity, driven by increased collaboration between fintech infrastructure providers, digital platforms, and incumbent banks. Unlike in some European markets dominated by large neobanks, Spain’s embedded finance ecosystem is shaped by a diverse set of actors across lending, payments, and insurance segments, often operating in partnership models. For instance, Bizum, the joint P2P payments network of Spanish banks, has become an embedded payments backbone across e-commerce and mobile apps, while Redsys continues to anchor backend infrastructure for acquirers and banks integrating into merchant platforms.
• Open banking readiness (via PSD2), increasing digitalization of SMEs, and the availability of European recovery funds (e.g., NextGenerationEU) for digital transformation have incentivized more platforms to embed financial services. However, the market is not yet saturated, leaving room for specialist players to differentiate through vertical-specific or infrastructure-as-a-service models. Competition is particularly active in BNPL (Buy Now, Pay Later), embedded payments, and vertical SaaS-based financing.
• Competitive pressure is likely to intensify further as B2B embedded finance and context-specific microservices become more prevalent. Traditional banks such as Santander, CaixaBank, and BBVA are actively partnering with or acquiring fintechs to maintain relevance in the embedded value chain, which will create a multi-layered competition landscape blending infrastructure, distribution, and data access.

Key Players Span Fintechs, Banks, Infrastructure Enablers, and Sector Platforms

• The Spanish embedded finance landscape includes diverse participants across use cases. In embedded lending and BNPL, players such as Klarna Spain, Sequra, and Pagantis (part of Afterpay/Clearpay) are active across retail and e-commerce. In the insurance space, insurtechs like Wefox (operating in Spain), Bdeo, and Coverfy are embedding microinsurance within mobility and gig platforms. Fintech infrastructure providers such as Unnax (embedded banking and compliance), Belvo (open banking APIs), and Kantox (currency automation for

• Major banks such as BBVA and Santander are active through API marketplaces and investment arms. BBVA API Market offers use cases ranging from account aggregation to identity verification for partners. Santander has scaled its PagoFX infrastructure and is investing in fintechs via Mouro Capital. This dual role - as both infrastructure providers and direct competitors - adds complexity to the competitive field.
• Spain is likely to see increasing activity from embedded finance-focused fintechs from other EU countries, attracted by Spain’s digital adoption and funding ecosystem. At the same time, local vertical SaaS players (e.g., Factorial in HR, Jeff in services) are expected to deepen financial integration, becoming new competitors or collaboration points for embedded finance providers.

Recent Strategic Moves Signal Market Consolidation and Capability Expansion

• The Spanish embedded finance space has witnessed key deals aimed at building capabilities and expanding distribution channels. In September 2023, Belvo partnered with Rappi to deliver open banking-based financial services in Spain and Latin America. Kantox, an embedded FX automation platform based in Barcelona, was acquired by BNP Paribas in late 2023 to scale its offering across Europe. Wefox, while headquartered in Germany, expanded its embedded insurance partner network in Spain, focusing on mobility apps and retail platforms.
• These activities reflect a broader strategy of capability bundling - acquisitions are focused on enabling banks or platforms to own the embedded finance stack (e.g., payments, KYC, credit decisioning) rather than relying on fragmented providers. Partnerships are often targeting distribution efficiency or onboarding speed via shared APIs and data flows.
• Further M&A is likely, especially around compliance-as-a-service, SME credit, and embedded insurance. Fintechs with open banking, ID verification, or BNPL capabilities are expected to be acquisition targets, particularly by larger banks or regional EU players entering Spain.

Licensing and Regulatory Clarity Is Supporting New Entrants and Competition

• Spain’s regulatory environment has shown signs of active support for embedded finance innovation while maintaining a compliance-first posture. The Banco de España has reinforced guidance on licensing obligations for fintechs operating under embedded models, especially those dealing with credit intermediation and data processing under PSD2. Additionally, CNMV (Spain’s securities regulator) is collaborating with EU authorities on the implementation of MiCA (Markets in Crypto-Assets), which could affect embedded crypto-payment solutions in retail platforms.
• Clearer guidelines around licensing - particularly for payment initiation services (PIS) and account information services (AIS) - have made it easier for firms like Unnax and Belvo to operate as regulated entities. This has lowered entry barriers for new players and enabled traditional platforms to integrate regulated services through APIs without seeking licenses themselves.
• Regulatory scrutiny will likely increase, especially for BNPL and SME lending embedded models, as the EU considers tighter rules under the proposed Consumer Credit Directive revision. However, Spain’s collaborative regulatory stance, along with strong EU-level alignment, will continue to favor regulated competition and cross-border expansion.

Future Competitive Landscape Will Be Defined by Infrastructure Control and Sector Specialization

• The future competitive dynamic will revolve around control of the embedded finance infrastructure layer - APIs, data access, and KYC - and the ability to specialize offerings for high-potential sectors such as healthcare, education, real estate, and urban mobility. Embedded finance providers that can offer modular services - such as lending, payments, and insurance within a single integration - will have an advantage.
• Institutions with existing ecosystem control (e.g., BBVA, Bizum, CaixaBank) are likely to deepen partnerships or acquire fintechs to avoid disintermediation. At the same time, global fintechs entering Spain - such as Stripe or Adyen - may focus on large merchants or platform deals, thereby influencing pricing and bundling standards.
• The Spanish market will evolve into a more verticalized and infrastructure-driven ecosystem. Competition will shift from pure user acquisition toward developer enablement, compliance orchestration, and API-based monetization. As embedded finance becomes standard within platform offerings, differentiation will increasingly come from sectoral expertise and ability to navigate regulatory complexity.

Scope

Spain Embedded Finance Market Size and Growth Dynamics

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

Spain Embedded Finance Financial Performance Indicators

• Total Revenue
• Average Revenue per Transaction / Product

Spain 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

Spain Embedded Payments Market Size and Growth Dynamics

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

Spain 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

Spain Embedded Payments Market Segmentation by Business Models

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

Spain Embedded Payments Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Spain 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

Spain Embedded Lending Market Size and Growth Dynamics

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

Spain 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 %)

Spain Embedded Lending Market Segmentation by Business Models

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

Spain Embedded Lending Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Spain 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

Spain Embedded Lending Market Segmentation by End-Use Markets

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

Spain Embedded Insurance Market Size and Premium Dynamics

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

Spain 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

Spain 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

Spain Embedded Insurance Market Segmentation by Business Models

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

Spain Embedded Insurance Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Spain Embedded Insurance Market Segmentation by End-Use Markets

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

Spain Embedded Banking Market Size and Account Dynamics

• Total Deposits / Inflows
• Account Fee Revenue

Spain Embedded Banking Key Metrics

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

Spain Embedded Banking Distribution by End-Use Markets

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

Spain Embedded Investments & Wealth Market Size and User Dynamics

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

Spain Embedded Investments & Wealth Key Metrics

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

Spain Embedded Investments & Wealth Market Segmentation by Business Models

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

Spain Embedded Investments & Wealth Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Spain 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.