Embedded Finance Market Size Worth $1,029.02 Billion By 2032 | CAGR: 32.4%

The global embedded finance market size is expected to reach USD 1,029.02 billion by 2032, according to a new study by Polaris Market Research. The report “Embedded Finance Market Share, Size, Trends, Industry Analysis Report, By Type (Embedded Payment, Embedded Insurance); By Business Model; By End-use; By Region; Segment Forecasts, 2024 - 2032” gives a detailed insight into current market dynamics and provides analysis on future market growth.

The growing acceptance of embedded finance by major market players like Amazon, Shopify, Uber Technologies, and others is poised to propel the growth of embedded finance in the foreseeable future. These industry giants are actively providing a range of embedded finance services, including buy now pay later options, wallet services, and payment solutions to their user base. Additionally, increased investments in embedded finance startups contribute to the positive momentum of the market. As these established companies integrate and expand their financial services, the overall adoption of embedded finance is expected to witness significant growth.

The market is driven by the numerous advantages it offers, including serving as an alternative revenue stream for businesses, providing a competitive edge, and enhancing the overall customer experience. One key factor contributing to this growth is the seamless integration of banking services into non-banking business platforms facilitated by Application Programming Interfaces (APIs). APIs enable businesses to easily incorporate financial services into their operations, fostering a more efficient and interconnected ecosystem. As businesses recognize the potential for additional revenue, improved competitiveness, and a better customer experience through embedded finance, the market is expected to witness sustained growth.

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Major banks are actively seizing opportunities in the market. For instance, JPMorgan Chase has collaborated with Gusto to offer integrated payroll services to small and mid-sized clients. This partnership allows Chase customers to handle both banking and payroll activities in a unified platform, streamlining their experience without the need to switch between applications. Similarly, Goldman Sachs has partnered with Modern Treasury, a payments software company, to integrate Modern Treasury's payments operations platform with Goldman Sachs' TxB (cloud) platform. The collaboration aims to facilitate companies in seamlessly adding payments to their products and ensure compliance with financial regulations as they incorporate embedded payment options.

Neo banks are diversifying their services by entering the lending space and providing borrowers with accessible digital loan options. Sofi, a neo-bank initially focused on student lending, has broadened its offerings to include personalized loans for a broader audience. From home improvement loans to wedding loans, their user-friendly application process allows borrowers to prequalify in less than a minute.

Embedded Finance Market Report Highlights

• The embedded payment segment held the largest share, primarily due to the rise in the adoption of digital transactions
• The travel & tourism segment will grow rapidly, as most of the start-ups in the travel booking offer payment wallet services
• North America garnered the largest share, owing to a well-developed digital payment network and a rise in online payments via the younger generation
• The key market players include Cybrid Technology, Finastra, Fluenccy, Fortis Payment Systems, Lendflow, PAYRIX, Stripe, Transcard Payments, & Zopa Bank.

Polaris Market Research has segmented the embedded finance market report based on type, business model, end-use, and region:

Embedded Finance, Type Outlook (Revenue - USD Billion, 2019 - 2032)

• Embedded Payment
• Embedded Insurance
• Embedded Investment
• Embedded Lending
• Embedded Banking

Embedded Finance, Business Model Outlook (Revenue - USD Billion, 2019 - 2032)

• B2B
• B2C
• B2B2B
• B2B2C

Embedded Finance, End-Use Outlook (Revenue - USD Billion, 2019 - 2032)

• Retail
• Healthcare
• Logistics
• Manufacturing
• Travel & Entertainment
• Others

Embedded Finance, Regional Outlook (Revenue - USD Billion, 2019 - 2032)

• North America

• U.S.
• Canada

• Europe

• Germany
• UK
• France
• Italy
• Spain
• Russia
• Netherlands
• Rest of Europe

• Asia Pacific

• China
• India
• Japan
• South Korea
• Indonesia
• Malaysia
• Australia
• Rest of Asia Pacific

• Latin America

• Argentina
• Brazil
• Mexico
• Rest of Latin America

• Middle East & Africa

• UAE
• Saudi Arabia
• Israel
• South Africa
• Rest of MEA

Embedded Finance Market Report Scope