Global Embedded Finance Market Intelligence Databook Subscription - Q1 2024

According to the publisher, Embedded Finance industry in the region is expected to grow by 47.8% on annual basis to reach US$8,570.1 million in 2023.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 32.9% during 2023-2029. The embedded finance revenues in the country will increase from US$8,570.1 million in 2023 to reach US$31,896.6 million by 2029.

Globally, investment in the embedded finance sector has surged significantly as both fintech firms and banking institutions seek to capitalize on the growing shift toward embedded financial offerings. Digital platforms and businesses are increasingly integrating financial services into their products and services to drive customer loyalty, revenue growth, and convenience.

Private equity and venture capital firms are also foreseeing high growth in the sector, especially in countries like India, where the market will record strong growth as more consumers bank, invest, borrow, and make online transactions. The market is also projected to record robust growth in the B2B embedded lending space, as small businesses struggle to access working capital through traditional channels.

Embedded lending leading the growth of the embedded finance industry in the global market

The macroeconomic challenges faced by small and medium-sized businesses are driving the demand for working capital globally. With merchants and retailers struggling to access credit through traditional channels, due to rising interest rates, embedded lending providers are experiencing strong growth around the world.

• In India, Rupifi announced that the firm had disbursed over INR 20 billion in loans to businesses since its inception in 2020. The firm is offering embedded lending solutions through leading B2B marketplaces across sectors, including FMCG, Pharma, Fashion, and Electronics, among others.
• In the United States, Amazon launched a cash advance feature for sellers on its platform. The feature will allow merchants to grow and scale their businesses, which will subsequently drive revenue growth from the e-commerce giant. Walmart, on the other hand, is also planning to introduce its buy now pay later product to drive more revenue.
• In Europe, many of the B2B BNPL providers have raised funding rounds to provide credit facilities to more merchants and retailers. The funding rounds indicate that global venture capital and private equity firms are foreseeing growth in the B2B embedded payment space.

The trend is projected to further continue over the next three to four years, as the economic environment continues to drive the demand for credit access among small and medium-sized businesses globally.

The demand for embedded finance is growing significantly in the travel and tourism sector

Globally, travel activities have posted a strong rebound after two years of pandemic-induced restrictions. The pent-up travel demand has also resulted in the demand for embedded finance solutions, such as lending and insurance, at the checkout. As a result, firms are forging strategic alliances and launching new products globally.

• In Australia, Zip partnered with JetStar airline operators to provide air travelers with a flexible payment solution at checkout. The service is expected to gain widespread traction due to the rising cost of living and pent-up travel demand.
• In the United States, Afterpay partnered with Expedia, the global travel-based booking platform. The partnership will allow travelers to book flights, accommodations, and other travel activities using the buy now pay later payment method.
• In Europe, Visitors Coverage, the pan-European insurtech firm, launched an embedded software-as-a-service solution amid the growing demand for such solutions among travelers in the region.

From the short to medium-term perspective, the publisher expects more such strategic partnerships and product launches that cater to the growing demand for embedded finance solutions among travelers.

Banking institutions can drive revenue growth by offering embedded finance services to small and medium-sized enterprises

Digital platforms are offering an array of financial services, thereby capturing the majority of the embedded finance market over the last few years. The growth of fintech firms has threatened the operations of conventional banks, who have been left far behind due to innovation and investment from digital platforms. However, the embedded finance industry is projected to grow significantly over the next three to four years, and conventional banks can still capitalize on the expected growth.

According to a report from Accenture, embedded finance offerings from small and medium-sized businesses can bring as much as US$92 billion in revenue for conventional banks by 2025. To capitalize on the growing market, banks need to strengthen as well as expand their relationships with consumers, while forging strategic alliances with leading digital platform providers. By delivering exceptional convenience and digital experiences, fintech firms have taken the market share from banking institutions. Consequently, traditional banking firms also need to focus on delivering more value to their customers through innovative experience and customer service.

This report provides global insights into key trends and drivers along with a detailed data centric analysis of market opportunities in embedded finance industry at global and country level. Region and countries included in this report are:

1. Global Embedded Finance Business and Investment Opportunities
2. Argentina Embedded Finance Business and Investment Opportunities
3. Australia Embedded Finance Business and Investment Opportunities
4. Brazil Embedded Finance Business and Investment Opportunities
5. Canada Embedded Finance Business and Investment Opportunities
6. China Embedded Finance Business and Investment Opportunities
7. France Embedded Finance Business and Investment Opportunities
8. Germany Embedded Finance Business and Investment Opportunities
9. India Embedded Finance Business and Investment Opportunities
10. Indonesia Embedded Finance Business and Investment Opportunities
11. Italy Embedded Finance Business and Investment Opportunities
12. Kenya Embedded Finance Business and Investment Opportunities
13. Mexico Embedded Finance Business and Investment Opportunities
14. Nigeria Embedded Finance Business and Investment Opportunities
15. Philippines Embedded Finance Business and Investment Opportunities
16. Russia Embedded Finance Business and Investment Opportunities
17. South Africa Embedded Finance Business and Investment Opportunities
18. Thailand Embedded Finance Business and Investment Opportunities
19. United Arab Emirates Embedded Finance Business and Investment Opportunities
20. United Kingdom Embedded Finance Business and Investment Opportunities
21. United States 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.