According to the publisher, the Embedded Finance industry in Mexico is expected to grow by 35.0% on annual basis to reach US$ 5.75 billion in 2024.
The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 24.7% during 2024-2029. The embedded finance revenues in the country will increase from US$ 5.75 billion in 2024 to reach US$ 17.37 billion by 2029.
The Mexican embedded finance market is poised for significant growth, driven by rising smartphone penetration, a large unbanked population, and increasing demand for convenient financial services. The COVID-19 pandemic accelerated the mobile/contactless payments trend that had already begun in Mexico. Embedded finance, or the possibility to offer financial services through different platforms, represents a good opportunity for fintech companies to partner with retailers and other industries.
Major Drivers of Mexico Embedded Finance Market: With over 650 fintech start-ups, Mexico is one of the largest fintech markets in Latin America. According to recent industry studies, it is one of the most active countries backing financial technology ventures. Most Mexican fintech companies are focused on payments and remittances, personal financial management, crowdfunding, and lending. Due to the COVID-19 pandemic, the number of Mexican fintech startups increased more than 14 percent, especially in the digital banking and insurtech segments.
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.
The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 24.7% during 2024-2029. The embedded finance revenues in the country will increase from US$ 5.75 billion in 2024 to reach US$ 17.37 billion by 2029.
The Mexican embedded finance market is poised for significant growth, driven by rising smartphone penetration, a large unbanked population, and increasing demand for convenient financial services. The COVID-19 pandemic accelerated the mobile/contactless payments trend that had already begun in Mexico. Embedded finance, or the possibility to offer financial services through different platforms, represents a good opportunity for fintech companies to partner with retailers and other industries.
Major Drivers of Mexico Embedded Finance Market: With over 650 fintech start-ups, Mexico is one of the largest fintech markets in Latin America. According to recent industry studies, it is one of the most active countries backing financial technology ventures. Most Mexican fintech companies are focused on payments and remittances, personal financial management, crowdfunding, and lending. Due to the COVID-19 pandemic, the number of Mexican fintech startups increased more than 14 percent, especially in the digital banking and insurtech segments.
- In Mexico, over 85 percent of the population has a mobile phone, and many cannot afford to own a computer. Therefore, many rely on their phones to conduct financial transactions. This provides opportunities for new and improved processes for sending and receiving payments.
- According to the analysis, 44.6% of all fintechs in Mexico have a clear objective: they aim at segments of underbanked individuals and businesses. However, most companies still focus on customers already operating within the traditional financial system, whether individuals or corporations.
- Indeed, the number of Mexicans with savings accounts has increased, but from significantly depressed levels. While in 2015, 44.1% of adults reported having one, in 2021, that number was 49%, still notably lower than in most other Latin American countries. The government will release new results later this year, which could still show some improvement in more recent years.
- In Apr 2024, Nubank, the largest digital lender in Latin America by number of clients, has partnered with a local department store to incorporate cash into its offering. It announced a partnership with Mastercard’s Arcus that will allow its clients to deposit cash in a department store network in the country, thus providing a tool for underbanked Mexicans to gain access to digital banking easily.
- Micro-savings and Investments: Many Mexicans are unbanked or underbanked. Fintech startups like Clip and Albo offer innovative solutions. Clip, a point-of-sale (POS) system provider, integrates micro-savings features, allowing merchants to round up customer transactions and save the difference. Albo, a neobank, provides micro-investment options directly within their app, encouraging users to save and invest even with small amounts.
- Retail and Fintech Alliances: Major retailers are recognizing the potential of embedded finance. Oxxo, a ubiquitous convenience store chain in Mexico, partnered with fintech startup Cuenca to offer digital wallets and financial services to its vast customer base. This partnership leverages Oxxo's physical presence and Cuenca's digital expertise, increasing financial inclusion across Mexico.
- Fintech-Telco Collaboration: Telecom companies in Mexico have a vast network of users and established payment infrastructure. Fintech startups are partnering with them to expand financial services. For instance, Telcel, a major telecom provider, partnered with Clip to offer its mobile wallet solution to Telcel users. This broadens Clip's reach while allowing Telcel to offer enhanced financial services to its customer base.
- Focus on Financial Inclusion: Expect embedded finance solutions to cater to the unbanked and underbanked population, offering micro-savings, micro-loans, and simplified insurance products.
- Increased Innovation: Look for innovative embedded finance solutions tailored to specific sectors like retail, transportation, and healthcare.
- Strategic Partnerships: Collaboration between fintech startups, traditional financial institutions, and telecom companies will likely accelerate growth and innovation.
- API-driven Integration: Seamless integration of financial services through APIs will become the norm, creating a more user-friendly and efficient experience.
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 Mexico. Below is a summary of key market segments:Mexico 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
Mexico 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
Mexico 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
Mexico 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
Mexico Embedded Wealth Management Market Size and Forecast
Mexico 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.
Table of Contents
1. About this Report
2. Mexico Embedded Finance Industry Market Size and Forecast
3. Mexico Embedded Finance Industry Market Size and Forecast by End Use Industry
4. Mexico Embedded Finance Industry Market Size and Forecast by Business Model
5. Mexico Embedded Finance Industry Market Size and Forecast by Distribution Model
7. Mexico Embedded Insurance Industry Market Size and Forecast by End Use Industry
8. Mexico Embedded Insurance Industry Market Size and Forecast by Consumer Segment
9. Mexico Embedded Insurance Industry Market Size and Forecast by Type of Offering
10. Mexico Embedded Insurance Industry Market Size and Forecast by Business Model
11. Mexico Embedded Insurance Industry Market Size and Forecast by Distribution Model
12. Mexico Embedded Insurance Industry Market Size and Forecast by Distribution Channel
13. Mexico Embedded Insurance Industry Market Size and Forecast by Type of Insurance
14. Mexico Embedded Insurance Industry Market Size and Forecast by Non-Life Insurance
16. Mexico Embedded Lending Industry Market Size and Forecast by Consumer Segment
17. Mexico Embedded Lending Industry Market Size and Forecast by Business to Business (B2B) Sectors
18. Mexico Embedded Lending Industry Market Size and Forecast by Business to Consumer (B2C) Sectors
19. Mexico Embedded Lending Industry Market Size and Forecast by Type of Lending
20. Mexico Embedded Lending Industry Market Size and Forecast by Business Model
21. Mexico Embedded Lending Industry Market Size and Forecast by Distribution Model
23. Mexico Embedded Payment Industry Market Size and Forecast by End Use Segment
24. Mexico Embedded Payment Industry Market Size and Forecast by Consumer Segment
25. Mexico Embedded Payment Industry Market Size and Forecast by Business Model
26. Mexico Embedded Payment Industry Market Size and Forecast by Distribution Model
29. Mexico Asset Based Finance Industry Market Size and Forecast by Type of Assets
30. Mexico Asset Based Finance Industry Market Size and Forecast by End User
31. Further Reading
Table Information
Report Attribute | Details |
---|---|
No. of Pages | 130 |
Published | April 2024 |
Forecast Period | 2024 - 2029 |
Estimated Market Value ( USD | $ 5.8 Billion |
Forecasted Market Value ( USD | $ 17.4 Billion |
Compound Annual Growth Rate | 24.7% |
Regions Covered | Mexico |