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Embedded Finance Market Size - By Finance Type (Embedded Payment, Embedded Insurance, Embedded Investment, Embedded Lending, Embedded Banking), End Use (Retail, Healthcare, Logistics, Manufacturing, Travel & Entertainment), Business Model & Forecast, 2023 - 2032

  • Report ID: GMI7054
  • Published Date: Oct 2023
  • Report Format: PDF

Embedded Finance Market Size

Embedded Finance Market size was valued at USD 58 billion in 2022 and is estimated to register a CAGR of over 29% between 2023 and 2032. The surge in digital payments is driving the market growth by fostering the seamless integration of financial services into various platforms. As consumers increasingly opt for digital transactions, businesses are leveraging this trend to offer integrated financial products, such as digital wallets, lending services, and payment gateways, within their applications.


Embedded Finance Market

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According to the Press Information Bureau (India) January 2023 press release, BHIM UPI became the favored payment method among citizens, witnessing a remarkable 8036.0 million digital payment transactions totaling USD 165.2 billion in value. The increased adoption of digital payment methods is expanding the embedded finance industry ecosystem, providing convenient, accessible, and tailored financial solutions to a broader audience.


The demand for frictionless customer experiences in payments is primarily driving the embedded finance market size. Consumers now expect seamless and convenient payment processes across various platforms. To meet customer expectations, businesses are integrating financial services directly into their applications, offering services such as digital wallets, instant loans, and streamlined payment gateways. The focus on enhancing user experience boosts customer satisfaction along with fueling market expansion, creating a more user-friendly & efficient financial landscape.

The integration of financial services into various platforms raises significant concerns about data security and privacy. The handling of sensitive financial information within different applications increases the risk of data breaches and cyberattacks. Protecting customer data from unauthorized access and ensuring compliance with data protection regulations, such as GDPR in Europe, is of prime importance. Establishing robust encryption protocols, multi-factor authentication, and continuous monitoring are the essential measures to mitigate data security challenges and build trust among users in embedded finance services.


COVID-19 Impact

The COVID-19 pandemic accelerated the embedded finance industry growth. The surge in online shopping drove the adoption of Buy Now, Pay Later (BNPL) models, allowing consumers to make purchases and payments in installments, boosting sector growth. During the pandemic, investors also showed increased interest in fintech startups, leading to substantial funding. The influx of capital facilitated the development of innovative embedded finance solutions, meeting the rising demand for digital financial services and augmenting the overall market expansion.

Embedded Finance Market Trends

Collaborations are driving the expansion of the embedded finance industry by proliferating advanced financial services for businesses. Partnerships between fintech firms, traditional financial institutions, and tech companies enable the seamless integration of diverse financial solutions into non-financial platforms.

For instance, in June 2023, Opnfi, an embedded finance company, and actyv.ai, an AI-driven enterprise SaaS platform incorporating B2B BNPL and insurance services, entered into a strategic collaboration. The partnership aimed at introducing embedded finance solutions tailored for businesses in promising markets across South Asia, ASEAN, and the Middle East & Africa. This collaborative approach not only accelerates the adoption of embedded finance services but also fosters a dynamic ecosystem of integrated financial tools.


The rapid growth of e-commerce is providing fertile ground for embedded financial services, propelling market demand. Online retailers are increasingly integrating financial services, such as digital wallets, BNPL solutions, and instant loans, directly into their platforms. This integration enhances customer experience while expanding the scope of the market, creating opportunities for businesses to offer seamless financial solutions within the e-commerce ecosystem. As the e-commerce sector is flourishing, the embedded finance market is poised for significant growth.

Embedded lending is driving market growth by enabling businesses to seamlessly provide customers with accessible loans. Through the integration of lending services directly into the company’s platforms, companies can offer quick & convenient customized loan options. This approach simplifies the borrowing process, enhances customer satisfaction, and expands financial inclusivity. As businesses are increasingly adopting embedded lending solutions, the market is expected to thrive, offering diverse & efficient financial services to a broader audience.


Embedded Finance Market Analysis

Embedded Finance Market Size, By Finance Type, 2021 – 2032, (USD Billion)

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Based on finance type, the embedded payment segment dominated around USD 27.3 billion revenue in 2022, due to the increasing demand for convenient & secure payment methods. As consumers seek seamless transactions and enhanced security, businesses are integrating payment services directly into their platforms. For instance, in June 2023, Mastercard, in collaboration with PayU, introduced Click to Pay in South Africa. The Click to Pay feature represents the next evolution in e-commerce technology, allowing consumers to make payments without entering their card details or storing sensitive information on the platforms of various merchants.

 Embedded Finance Market Share, By End Use, 2022

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Based on end use, the embedded finance market from retail segment held over USD 17.3 billion revenue in 2022. The provision of cost-effective credit solutions for capital needs is propelling segment growth within the market. By offering accessible financial support, businesses can efficiently manage their working capital requirements, fostering growth and stability.


For instance, in July 2023, MyShubhLife, an embedded finance platform, collaborated with PayWorld, a fintech platform targeting retail merchants in India. MyShubhLife through its NBFC Ekagrata intends to offer PayWorld's retailers straightforward access to credit, addressing their working capital requirements. By harnessing its embedded technology, MyShubhLife plans to utilize PayWorld's extensive network of retailers, offering merchants flexible and cost-effective credit options. The increased accessibility to cost-effective credit options significantly drives retail segment growth within the market.

U.S. Embedded Finance Market Size, 2021 -2032, (USD Billion)

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North America embedded finance market size accounted for 35% of the revenue share in 2022, owing to its technological prowess and high digital connectivity. The region's continuous technological advancements in fintech, blockchain, and Artificial Intelligence (AI) form a fertile ground for innovative embedded finance solutions. Extensive internet & smartphone usage creates a conducive environment for seamless adoption, fostering the integration of digital financial services into everyday life. These factors, coupled with strong regulatory support, position North America at the forefront of the industry landscape, driving its rapid growth and evolution.


Embedded Finance Market Share

The major companies operating in the embedded finance industry are:

  • Banxware
  • Cross River
  • Finastra
  • Finix
  • Flywire
  • Parafin
  • PayPal Holdings, Inc.
  • Stripe, Inc.
  • TreviPay
  • Zopa Bank Limited

In the competitive landscape of the embedded finance industry, dominant players including Stripe Inc. and PayPal Holdings, Inc. strategically forge partnerships to bolster digital payment trends. Through new product launches, they emphasize features, such as BNPL solutions and credit offerings, enhancing customer experience and solidifying their position as market leaders in the rapidly evolving embedded finance sector.

Embedded Finance Industry News

  • In September 2023, Manigo, a London-based fintech-as-a-service platform, collaborated with SurePay, a Saudi Arabian payment solution provider, to introduce embedded finance solutions tailored for businesses and consumers across the UK.
  • In November 2022, SBM Bank India and Open Financial Technologies Pvt. Ltd. entered into a strategic collaboration to introduce Zwitch, an all-encompassing embedded finance platform. This platform provides fintechs with a user-friendly, versatile API solution, empowering them to create customized financial products effortlessly, using both no-code and low-code methods.

The embedded finance market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD billion) from 2018 to 2032 for the following segments:

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Market, By Finance Type

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

Market, By Business Model

  • B2B
  • B2C

Market, By End Use

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

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Nordics
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Southeast Asia 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • South Africa
    • Saudi Arabia


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of embedded finance reached USD 58 billion in 2022 and is set to witness 29% CAGR from 2023 to 2032, backed by the surge in digital payments.

The retail end-use segment was valued at USD 17.3 million in 2022. By offering accessible financial support, businesses can efficiently manage their working capital requirements, fostering growth and stability.

North America market held over 35% of the revenue share in 2022, owing to its technological prowess in fintech, blockchain, and Artificial Intelligence (AI), along with high digital connectivity.

Banxware, Cross River, Finastra, Finix, Flywire, Parafin, PayPal Holdings, Inc., Stripe, Inc., TreviPay, and Zopa Bank Limited.

Embedded Finance Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 18
  • Tables & Figures: 287
  • Countries covered: 22
  • Pages: 230
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