Embedded Banking Market Report 2025

The embedded banking market size has grown exponentially in recent years. It will grow from $21.36 billion in 2024 to $26.95 billion in 2025 at a compound annual growth rate (CAGR) of 26.2%. The historic period’s growth was driven by factors such as the increasing penetration of smartphones and internet connectivity, greater regulatory support for open banking initiatives, rising investments in cloud-based banking infrastructure, heightened awareness among businesses of the benefits of embedded finance, and growing demand for real-time transaction processing.

The embedded banking market size is expected to see exponential growth in the next few years. It will grow to $67.57 billion in 2029 at a compound annual growth rate (CAGR) of 25.8%. In the forecast period, growth is expected to be fueled by the rising demand for seamless digital payment solutions, the expanding adoption of banking-as-a-service (BaaS) platforms, deeper integration of fintech solutions into non-financial applications, increasing consumer preference for contactless payments, and the growing need for personalized financial services. Key trends anticipated include embedding banking services within non-financial platforms, advancements in cloud computing for scalable banking solutions, the use of artificial intelligence to deliver personalized banking experiences, technology upgrades enabling real-time payment processing, and the integration of embedded finance into e-commerce ecosystems.

The growing demand for digital financial services is expected to drive the expansion of the embedded banking market in the coming years. Digital financial services involve providing financial products and services through digital platforms such as mobile apps and the internet. This growth is fueled by the rapid digitalization of businesses across industries, as they aim to improve customer experiences and streamline financial operations through integrated solutions. Embedded banking supports digital financial services by embedding financial tools directly into non-financial platforms, allowing for seamless transactions. It enhances user experience by offering convenient, real-time access to banking services within everyday digital environments. For example, in July 2024, UK Finance, a UK-based financial services company, reported that the UK recorded 18.3 billion contactless payments in 2023, representing a 7% increase from 17 billion in 2022. Contactless payments accounted for 38% of all UK payments that year. This trend demonstrates that the increasing demand for digital financial services is boosting the growth of the embedded banking market.

Leading companies in the embedded banking market are focusing on creating innovative solutions, such as embedded finance platforms, to streamline financial services, enhance customer experiences, and support digital transformation. Embedded finance integrates banking and payment services directly into non-financial platforms, enabling businesses to deliver seamless financial solutions within their own ecosystems. For instance, in October 2024, HSBC Holdings plc, a UK-based financial services provider, introduced SemFi, a new embedded finance solution for businesses. This platform allows small and medium-sized enterprises to access embedded finance directly through e-commerce platforms, simplifying payments and digital invoice financing to improve cash flow and operational efficiency. The model merges HSBC’s global expertise with agile technology, offering secure, integrated financial tools within existing business workflows.

In June 2025, Treasury Prime, a US-based banking-as-a-service (BaaS) company, partnered with People Trust Community Federal Credit Union to provide embedded banking solutions and improve digital financial access for members. The collaboration aims to modernize banking infrastructure, enhance financial inclusion, and deliver seamless digital banking experiences through API-driven technology. People Trust Community Federal Credit Union is a US-based financial institution offering a wide range of financial products and services.

Major players in the embedded banking market are Stripe Inc., Green Dot Corporation, Marqeta Inc., Q2 Holdings Inc., Unit Finance Inc., ClearBank Limited, Galileo Financial Technologies Inc., Mambu GmbH, 10x Future Technologies Services Limited, Solaris SE, Railsr Ltd., Finix Payments Inc., ChargeAfter Inc., Treezor SAS, Synctera Inc., Griffin Financial Technology Limited, Highnote Platform Inc., ebankIT Omnichannel Innovation S.A., Omnio Global, Treasury Prime Inc., OpenPayd, Crassula Limited.

North America was the largest region in the embedded banking market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in embedded banking report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the embedded banking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Embedded banking refers to the smooth integration of banking services into non-financial platforms such as e-commerce sites, mobile applications, or software tools. This approach enables businesses outside the traditional banking industry to provide financial services to their customers without becoming banks themselves. Powered by fintech infrastructure providers and licensed banks, embedded banking improves user experience by reducing friction, boosts customer engagement, and creates new revenue opportunities for businesses, while ensuring regulatory compliance through strategic partnerships.

The primary categories of embedded banking include payment processing, lending, contactless payments, wealth management, and more. Payment processing covers the handling of electronic transactions between buyers and sellers, including authorization, clearing, and settlement. The offerings consist of banking-as-a-service, payment solutions, and embedded finance, designed for organizations of all sizes - from small and medium-sized businesses to large enterprises - serving industry sectors such as retail and e-commerce, transportation and logistics, healthcare, media and entertainment, among others.

The embedded banking market research report is one of a series of new reports that provides embedded banking market statistics, including the embedded banking industry's global market size, regional shares, competitors with the embedded banking market share, detailed embedded banking market segments, market trends and opportunities, and any further data you may need to thrive in the embedded banking market. This embedded banking market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The embedded banking market includes revenues earned by entities through card issuance, fraud detection and risk management tools, and currency exchange and cross-border payments. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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