Embedded Banking Market Report 2026

The embedded banking market size has grown exponentially in recent years. It will grow from $26.95 billion in 2025 to $33.97 billion in 2026 at a compound annual growth rate (CAGR) of 26%. The growth in the historic period can be attributed to expansion of e-commerce and digital marketplaces, growth of fintech infrastructure providers, rising consumer demand for seamless financial experiences, increased collaboration between banks and fintech firms, availability of open banking frameworks.

The embedded banking market size is expected to see exponential growth in the next few years. It will grow to $84.87 billion in 2030 at a compound annual growth rate (CAGR) of 25.7%. The growth in the forecast period can be attributed to increasing adoption of embedded finance across non-financial sectors, rising demand for personalized financial services, expansion of real-time payment ecosystems, growing regulatory clarity for embedded banking models, increasing use of ai-driven financial analytics. Major trends in the forecast period include increasing integration of banking services into digital platforms, rising adoption of embedded payment and lending features, growing use of api-driven financial services, expansion of buy now pay later offerings, enhanced focus on regulatory-compliant embedded finance.

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 companies operating 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 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the embedded banking 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 banking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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