Embedded Banking Services Global Market Report 2025

The embedded banking services market size has grown rapidly in recent years. It will grow from $21.31 billion in 2024 to $25.09 billion in 2025 at a compound annual growth rate (CAGR) of 17.7%. The growth in the historic period can be attributed to the increasing adoption of open banking, rising demand for digital financial experiences, growth of mobile and e-commerce platforms, expanding use of personalized finance tools, and increasing digitalization of business operations.

The embedded banking services market size is expected to see rapid growth in the next few years. It will grow to $47.63 billion in 2029 at a compound annual growth rate (CAGR) of 17.4%. The growth in the forecast period can be attributed to increasing investment in fintech innovation, rising use of real-time analytics, growing adoption of embedded lending, expanding mobile-first banking, and increasing prevalence of API-driven platforms. Major trends in the forecast period include advancements in blockchain technology for banking, integration of cloud-native systems, innovation in AI-powered fraud detection, development of super-app ecosystems, and evolution of advanced embedded lending models.

The increasing adoption of digital banking solutions is expected to drive the growth of the embedded banking services market in the coming years. Digital banking solutions enable customers to conduct financial transactions through digital channels such as mobile apps and online platforms. This adoption is accelerating due to widespread smartphone penetration, which allows consumers to access banking services anytime and anywhere, reshaping their interaction with financial institutions. Embedded banking services integrate financial features directly into non-banking platforms, extending digital banking’s reach through everyday applications. This integration enhances user convenience, promotes financial inclusion, and reduces dependence on traditional banking channels. For instance, in July 2025, the Australian Banking Association (ABA) reported that 99.3% of customer-bank interactions occurred through digital channels, up from 99.1% the previous year. Additionally, Australians made $160 billion in payments via mobile wallets, reflecting a 28% year-on-year increase. Hence, the widespread adoption of digital banking solutions is fueling the growth of the embedded banking services market.

Major players in the embedded banking services market are focusing on introducing innovative solutions such as application programming interface (API)-driven banking platforms to facilitate seamless financial integration within non-bank applications. API-driven banking platforms enable developers to incorporate financial services into their applications, helping businesses launch financial products quickly and deliver enhanced user experiences without building extensive infrastructure. For example, in August 2025, AstroPay Global (IOM) Limited, a UK-based fintech company, introduced the AstroPay Platform, an API-driven banking system that allows companies to integrate services such as multicurrency wallets, global card issuing, real-time foreign exchange, and compliance tools. This solution enables fintech startups and non-financial enterprises to embed financial services under their brand, expand revenue opportunities, and enhance customer engagement through a unified financial experience.

In June 2023, Fidelity National Information Services Inc. (FIS), a US-based financial services company, acquired Bond Technologies Inc. for an undisclosed amount. This acquisition enhances FIS’s embedded finance and digital banking capabilities by incorporating Bond’s AI-powered banking-as-a-service platform. It strengthens FIS’s presence in the fintech ecosystem, expands its API-driven financial product offerings, and accelerates the delivery of personalized and scalable financial solutions. Bond Technologies Inc. is a US-based banking-as-a-service provider specializing in embedded finance platforms.

Major players in the embedded banking services market are JPMorgan Chase & Co., Plaid Inc., The Goldman Sachs Group Inc., PayPal Holdings Inc., Mastercard Incorporated, Fidelity National Information Services Inc., Adyen N.V., DigitalOcean Holdings Inc., Marqeta Inc., Rapyd Financial Network Ltd., Flywire Corporation, MX Technologies Inc., Cross River Bank, Tink AB, Solaris SE, Synapse Financial Technologies Inc., Finix Payments Inc., Railsbank Technology Ltd., Bankable Fintech Ltd., Moov Financial Inc., Banxware GmbH, OpenPayd Financial Services Ltd., and UNIPaaS Payments Technologies Ltd.

North America was the largest region in the embedded banking services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in embedded banking services report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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.

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

Embedded banking services refer to financial functionalities integrated directly into non-financial platforms or applications, enabling businesses to offer banking features without developing a complete banking infrastructure. These services include payments, lending, account management, and fund transfers within the host platform, enhancing user experience and streamlining financial operations.

The main types of embedded banking services include payment processing services, loan management solutions, account management tools, insurance services, and investment services. A payment processing service in embedded banking allows platforms to securely accept, authorize, and complete payments within their applications or websites without redirecting users to external systems. These services are deployed through cloud-based and on-premises modes and incorporate technologies such as application programming interface (API)-driven solutions, cloud computing, blockchain, and artificial intelligence (AI) and machine learning (ML) applications. They are applied in areas such as payment processing, lending, investment management, and insurance services, and are utilized by end-users including financial institutions, retailers, small and medium enterprises, and technology companies.

The countries covered in the embedded banking services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The embedded banking services market includes revenues earned by entities by providing services such as payments and money transfers, lending and financing, digital wallets and deposit accounts, virtual and physical cards, investment and wealth management, insurance, financial management tools, and banking-as-a-service solutions. 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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