Embedded Finance Market Report 2026

The embedded finance market size has grown exponentially in recent years. It will grow from $94.42 billion in 2025 to $115.03 billion in 2026 at a compound annual growth rate (CAGR) of 21.8%. The growth in the historic period can be attributed to growth of digital commerce ecosystems, expansion of platform-based business models, rising consumer preference for frictionless payments, increased collaboration between fintechs and enterprises, availability of open banking frameworks.

The embedded finance market size is expected to see exponential growth in the next few years. It will grow to $250.95 billion in 2030 at a compound annual growth rate (CAGR) of 21.5%. The growth in the forecast period can be attributed to expansion of embedded finance across new industry verticals, increasing regulatory clarity for non-bank financial services, rising adoption of embedded investment products, growth of ai-driven credit assessment models, increasing demand for contextual financial services. Major trends in the forecast period include expanding integration of payments into non-financial platforms, rising adoption of buy now pay later solutions, growing use of api-based financial services, increased deployment of embedded lending products, enhanced focus on seamless user journeys.

The growing adoption of online payment services is anticipated to drive the expansion of the embedded finance market in the coming years. Online payment services are digital platforms or systems that allow individuals and businesses to securely and efficiently conduct financial transactions over the internet. Their rising popularity is largely attributed to the convenience, speed, and secure nature of transactions that can be carried out anytime and from anywhere. Embedded finance enhances these services by embedding financial capabilities directly into digital platforms, improving the overall user experience. It facilitates smoother transactions, minimizes friction, and delivers seamless payment processes, enabling businesses to operate more efficiently and allowing customers to complete purchases with greater ease. For example, in July 2024, UK Finance, a UK-based financial services organization, reported that 62% of UK adults used online banking in 2023, while 60% accessed banking via mobile applications. Thus, the growing use of online payment services is a key driver of the embedded finance market’s growth.

Leading companies in the embedded finance market are focusing on the development of innovative platforms, such as all-in-one fintech solutions, to simplify payment processes and enhance the overall customer experience. Comprehensive fintech platforms are integrated digital systems that deliver a broad spectrum of financial services - including payments, lending, insurance, investment management, and banking - within a unified framework. For example, in May 2024, Fidelity Information Services (FIS), a U.S.-based financial services provider, introduced Atelio by FIS, a platform tailored for financial institutions, businesses, and software developers. This platform provides a robust embedded finance solution featuring easily integrable application programming interfaces (APIs), allowing users to incorporate services such as deposit management, money transfers, card issuance, lending, and KYC (Know Your Customer) onboarding directly into their offerings. It stands out for its strong security measures, regulatory compliance, and developer-oriented features, enabling swift implementation of customizable financial services supported by FIS’s advanced technology and industry expertise.

In June 2023, Bnkbl Ltd., a UK-based provider of banking-as-a-service (BaaS), acquired Arex Markets for an undisclosed amount. This acquisition is intended to strengthen Bnkbl’s embedded finance capabilities by incorporating advanced credit and working capital solutions, creating a robust pan-European banking platform tailored for neobanks, fintechs, and global brands. Arex Markets, headquartered in Spain, is a fintech company specializing in embedded finance, with a particular emphasis on invoice financing solutions for small and medium-sized enterprises.

Major companies operating in the embedded finance market are State Bank of India, eBay Inc., Adyen N.V., Cybrid Technology Inc., Stripe Inc., Finastra Group Holdings Limited, Green Dot Corporation, Affirm Holdings Inc., Paytm, ​Thoughtworks, Marqeta Inc., Q2 Holdings Inc., Xendit Inc., Zopa Bank Limited, Plaid Inc., Qover SA/NV, Transcard LLC, Lendflow Inc., Walnut Insurance Inc., SoFi Technologies Inc.

North America was the largest region in the embedded finance market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the embedded finance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the embedded finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The embedded finance market consists of revenues earned by entities by providing services such as buy now pay later, card issuance, identity verification, and fraud detection. The market value includes the value of related goods sold by the service provider or included within the service offering. The embedded finance market also includes sales of smart POS terminals, smartwatches, and vending machines. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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