Africa & Middle East Embedded Finance Business and Investment Opportunities Databook – 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q2 2024 Update

Africa & Middle East Embedded Finance Business and Investment Opportunities Databook – 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q2 2024 Update

According to PayNXT360, the embedded finance industry in the region is expected to grow by 13.6% annually to reach US$11,199.5 million in 2023.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 27.5% from 2024 to 2029. The region embedded finance revenues will increase from US$11,199.5 million in 2024 to reach US$37,688.8 million by 2029.

The embedded finance sector in Africa and Middle East has witnessed substantial growth over the past few months, propelled by the increasing integration of financial services across diverse industries. Sub-segments such as Buy Now, Pay Later (BNPL) and open banking are gaining momentum as businesses recognize their potential to enhance customer experiences and promote financial inclusion. Looking ahead, the embedded finance market in Africa and Middle East is expected to maintain its growth trajectory, driven by a rising demand for seamless financial solutions and regulatory initiatives that encourage innovation. As more companies embed financial services into their platforms, the region is well-positioned to utilize this trend to improve access to financial services for underserved populations and stimulate economic development.

Key product launches in the sector include:

• CredibleX's Launch in MENA Region: In early 2024, CredibleX announced its launch, providing businesses with seamless access to financial services, including lending and payment solutions.

• Mitgo Group's Acquisition: Mitgo Group acquired the UAE-based embedded finance platform Embedded, allowing it to offer integrated financial services to its affiliate customers.

Recent developments in the sector include notable partnerships such as:

• Copia and Visa Partnership: In December 2023, Copia, a Kenyan e-commerce platform, partnered with Visa to integrate embedded finance solutions, enhancing payment options and financial services for its customers and agents.

• Standard Bank Collaborations: Standard Bank in South Africa has partnered with fintech firms to improve its embedded finance offerings, focusing on payment processing and merchant cash advance solutions.

• Collaboration between Traditional Banks and Fintechs: Various banks are increasingly partnering with fintech companies to enhance their embedded finance offerings, focusing on innovative solutions tailored to customer needs.

These partnerships highlight the growing trend of embedding financial services into non-financial platforms, enhancing accessibility and convenience for consumers and businesses alike.

In terms of mergers and acquisitions, Moniepoint's acquisition of Kopo Kopo signifies sector consolidation, expanding Moniepoint's regional presence and capabilities in providing embedded finance solutions.

Regulatory changes are also noteworthy:

• Regulatory Framework Developments: New regulations anticipated in 2024 will address compliance requirements for fintechs, particularly regarding deposit-taking practices, led by the Central Bank of Nigeria.

• Focus on Financial Inclusion: Governments across Africa and Middle East are prioritizing financial inclusion, with embedded finance playing a crucial role in providing access to financial services for unbanked populations.

• Open Banking Initiatives: Gradual implementation of open banking regulations in several African countries is fostering collaboration between traditional banks and fintechs, driving innovation in embedded finance solutions.

This report offers a comprehensive, data-centric analysis of the embedded finance industry. It covers lending, insurance, payment, wealth and asset-based finance sectors and provides a detailed breakdown of market opportunities and risks across various sectors. With over 75+ KPIs at the country level, this report ensures a thorough understanding of embedded finance market dynamics, market size, and forecast.

It breaks down market opportunities by type of business model, consumer segment, and distribution model. In addition, it provides detailed information across various segments in each sector of embedded finance. KPI revenue helps in getting an in-depth understanding of end market dynamics.

PayNXT360's research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Scope

This report provides regional insights, along with an in-depth data centric analysis of the Embedded Finance industry in the Asia Pacific, covering 50+ KPIs for each region and country (650+ charts and 500+ tables in all). Below is a summary of key market segments:

Embedded Finance Market Size and Forecast

• Embedded Finance by Key Sectors
Retail
Logistics
Telecommunications
Manufacturing
Consumer Health
Others

• Embedded Finance by Business Model
Platforms
Enabler
Regulatory Entity

• Embedded Finance by Distribution Model
Own Platforms
Third Party Platforms


Embedded Insurance Market Size and Forecast

• Embedded Insurance by Industry
Embedded Insurance in Consumer Products
Embedded Insurance in Travel & Hospitality
Embedded Insurance in Automotive
Embedded Insurance in Healthcare
Embedded Insurance in Real Estate
Embedded Insurance in Transport & Logistics
Embedded Insurance in Others

• Embedded Insurance by Consumer Segments
B2B
B2C

• Embedded Insurance by Type of Offering
Embedded Insurance in Product Segment
Embedded Insurance in Service Segment

Embedded Insurance by Business Model
Platforms
Enabler
Regulatory Entity

• Embedded Insurance by Distribution Model
Own Platforms
Third Party Platforms

• Embedded Insurance by Distribution Channel
Embedded Sales
Bancassurance
Broker’s/IFA’s
Tied Agents

• Embedded Insurance by Insurance Type
Embedded Insurance in Life Segment
Embedded Insurance in Non-Life Segment

• Embedded Insurance in Non-Life Segment
Motor Vehicle
Fire and Property
Accident and Health
General Liability
Marine, Aviation and other Transport
Other

Embedded Lending Market Size and Forecast

• Embedded Lending by Consumer Segments
Business Lending
Retail Lending

• Embedded Lending by B2B Sectors
Embedded Lending in Retail & Consumer Goods
Embedded Lending in IT & Software Services
Embedded Lending in Media, Entertainment & Leisure
Embedded Lending in Manufacturing & Distribution
Embedded Lending in Real Estate
Embedded Lending in Other

• Embedded Lending by B2C Sectors
Embedded Lending in Retail Shopping
Embedded Lending in Home Improvement
Embedded Lending in Leisure & Entertainment
Embedded Lending in Healthcare and Wellness
Embedded Lending in Other

• Embedded Lending by Type
BNPL Lending
POS Lending
Personal Loans

• Embedded Lending by Business Model
Platforms
Enabler
Regulatory Entity

• Embedded Lending by Distribution Model
Own Platforms
Third Party Platforms

Embedded Payment Market Size and Forecast

• Embedded Payment by Consumer Segments
B2B
B2C

• Embedded Payment by End-Use Sector
Embedded Payment in Retail & Consumer Goods
Embedded Payment in Digital Products & Services
Embedded Payment in Utility Bill Payment
Embedded Payment in Travel & Hospitality
Embedded Payment in Leisure & Entertainment
Embedded Payment in Health & Wellness
Embedded Payment in Office Supplies & Equipment
Embedded Payment in Other

• Embedded Payment by Business Model
Platforms
Enabler
Regulatory Entity

• Embedded Payment by Distribution Model
Own Platforms
Third Party Platforms


Embedded Wealth Management Market Size and Forecast

Asset Based Finance Management Industry Market Size and Forecast
• Asset Based Finance by Type of Asset
Hard Assets
Soft Assets

• Asset Based Finance by End Users
SME’s
Large Enterprises

Reasons to buy

• In-depth Understanding of Embedded Finance Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028).

• Insights into Opportunity by end-use sectors – Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.

• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate embedded finance strategy; assess market specific key trends, drivers, and risks in the industry.

• Get Sector Insights: Drawing from proprietary survey results, this report identifies opportunities across embedded lending, embedded insurance, embedded finance, and embedded wealth sectors.

•Get insights at segment level, by the distribution model and by business model in key embedded finance segments

•Insights into the asset based finance market size and by type of assets, by end users.