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

Australia 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 country is expected to grow by 14.7% annually to reach US$2,924.3 million in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 27.4% from 2024 to 2029. The country's embedded finance revenues will increase from US$2,924.3 million in 2024 to reach US$9,815.3 million by 2029.

The embedded finance sector in Australia is rapidly expanding, driven by evolving consumer preferences, fintech innovation, and supportive regulatory changes. The market's growth is bolstered by significant product launches, strategic partnerships, and a regulatory environment conducive to cashless payments and fintech advancement.

Growth in the Embedded Finance Sector

Embedded finance has been gaining momentum in Australia over the last few months. This growth is fueled by shifting consumer behavior, the increasing innovation in fintech, and updated compliance regulations that simplify the offering of integrated financial services for both financial institutions and fintech companies.
In the next 6 months, the embedded finance market in Australia is expected to grow significantly. The growth is driven by the increasing demand for seamless financial experiences in industries like retail, e-commerce, healthcare, and software platforms.

Key Developments in the Embedded Finance Sector

Product Launches and Innovations

Douugh's Stakk Platform: Dough launched its Stakk platform, a comprehensive embedded finance solution offering various services, including digital banking, online account opening, identity verification, and payment processing. This platform is designed for B2B clients, allowing other businesses to integrate these financial services seamlessly into their offerings.

Embedded Payment Solutions: Various fintech companies have introduced new embedded payment solutions that enable businesses to integrate payment processing directly into their software platforms. This development is aimed at enhancing user experience and streamlining transactions for both B2B and B2C markets.

Douugh Pay: Douugh is also in the beta testing phase for its ""Douugh Pay"" solution, which aims to provide a merchant payment gateway. This product is expected to facilitate easier transactions for businesses and expand Douugh's footprint in the embedded finance space.

Strategic Partnerships

Zip and various e-commerce platforms: Zip has partnered with multiple e-commerce platforms to embed its payment solutions directly into their checkout processes. This initiative is designed to provide a seamless payment experience for consumers while expanding Zip's reach in the online retail space.

Revolut and local businesses: Revolut has engaged in partnerships with various Australian businesses to offer embedded financial services, including spending analytics and budgeting tools, directly within their platforms. This strategy aims to enhance customer engagement and provide added value through integrated financial management tools.

Regulatory Changes

Updated Compliance Regulations: The Australian government has implemented new compliance regulations that facilitate innovation in embedded finance. These changes aim to streamline the integration of financial services within non-financial platforms, enhancing the ability of fintech companies and traditional financial institutions to offer embedded financial products.

Focus on Cashless Payments: The demand for cashless payments has prompted regulatory bodies to support the growth of embedded payment solutions. This shift is aligned with the broader trend towards digital transactions, which has been accelerated by the pandemic, leading to a more favorable regulatory environment for embedded finance initiatives.

Support for Fintech Innovation: The Australian government continues to promote fintech innovation through various initiatives, including funding and support programs for startups in the embedded finance space. This regulatory support is crucial for fostering a competitive landscape and encouraging the development of new financial products and services.

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 in-depth, data-centric analysis of Embedded Finance industry in Australia. Below is a summary of key market segments:

Australia 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

Australia 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

Australia 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

Australia 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

Australia Embedded Wealth Management Market Size and Forecast

Australia 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.