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

Europe 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 10.1% annually to reach US$35,202.0 million in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 24.6% from 2024 to 2029. The region embedded finance revenues will increase from US$35,202.0 million in 2024 to reach US$105,828.7 million by 2029.

Embedded finance has seen significant growth in Europe over the past few months, driven by increasing consumer demand for seamless financial services integrated into everyday platforms. This trend is evident across various sectors, including retail and healthcare, as businesses directly leverage technology to offer services like payments, lending, and insurance within their ecosystems.

Looking ahead, the next few months are expected to bring further advancements, particularly in API technology, which will enhance the integration of financial services and expand access to previously underserved markets, thereby solidifying embedded finance as a standard in the financial landscape.

Key Developments in the Embedded Finance Sector

Product Launches and Innovations

YouLend's Partnership with Booking.com: YouLend has expanded its offerings by partnering with Booking.com to provide financing solutions for hotels, addressing their funding challenges and demonstrating the practical benefits of embedded finance in the hospitality sector.

Flowpay's Seed Funding: The Czech-based embedded finance provider Flowpay raised €2.1 million in March 2024, aiming to enhance its technological capabilities and expand its services for small and medium-sized enterprises (SMEs) across Europe.

Finmid's Emergence from Stealth: Berlin-based Finmid raised €35 million in April 2024 to broaden its reach and enhance its product offerings, particularly in providing tailored financing solutions for various businesses, including restaurants and retailers.

Automakers Integrating Embedded Insurance: Companies like Ford and Jaguar Land Rover have begun integrating insurance policies directly with vehicle purchases or leases, enhancing customer satisfaction and streamlining the buying process.

Strategic Partnerships

1. Liberis and Shop Circle Capital: In April 2024, Liberis partnered with e-commerce software provider Shop Circle Capital to deliver financing solutions specifically aimed at merchants in the UK. This collaboration addresses the funding gap faced by small and medium-sized enterprises (SMEs) and aims to enhance their access to necessary financial resources.
2. Froda and Visma Finance: Also in April 2024, Froda joined forces with Visma Finance to launch a new product focused on invoice loans. This innovative offering allows businesses to automatically pay invoices rather than receiving direct payments, streamlining cash flow management for SMEs.
3. Amazon and ING: Amazon Germany has established a partnership with ING to offer preapproved loans to its SME sellers through a seller portal. This collaboration utilizes Amazon's data to facilitate quick credit decisions, enhancing the financial support available to sellers on the platform.

Mergers and Acquisitions

UniCredit's Acquisition of Vodeno and Aion Bank: UniCredit signed a €370 million agreement to acquire Vodeno and Aion Bank, integrating their cloud-based Banking-as-a-Service (BaaS) platform. This acquisition aims to enhance UniCredit's capabilities to offer embedded financial solutions across Europe, catering to both financial and non-financial companies.

Ant International Acquires MultiSafepay: Ant International acquired the Amsterdam-based payment service provider MultiSafepay, integrating it into its Antom division. This move is designed to enhance payment solutions for SMEs, providing them with access to a wide array of international payment methods.

ThetaRay Acquires Screena: ThetaRay acquired the European screening company Screena, aiming to bolster its AI-driven solutions for detecting financial crime. This acquisition enhances ThetaRay's offerings for banks and fintechs, integrating advanced screening capabilities into its product suite.

Wolters Kluwer Acquires Isabel Group's Accountancy Portfolio: Wolters Kluwer is set to acquire the accountancy portfolio of Belgian FinTech Isabel Group for €325 million. This acquisition will expand Wolters Kluwer’s tax and accounting solutions, enhancing its service offerings in the European market.

Regulatory Changes

EU Open Banking Regulations: The European Union has proposed a regulatory framework comprising three main components: regulations on instant payments, the European Digital Identity Framework, and the next evolution of the core open banking regulation (the Third Payments Services Directive). These regulations aim to facilitate seamless financial transactions and improve digital identity verification, which are crucial for the growth of embedded finance in Europe.

Consumer Duty Regulation in the UK: The UK's Consumer Duty regulation has been highlighted as a significant development. This regulation mandates financial service providers to ensure that consumers understand their products. It emphasizes transparency in pricing and product features, aiming to enhance consumer protection and trust in embedded financial services.

Digital Currency Regulation: Discussions surrounding a potential digital European currency regulation are still in progress. Stakeholders are closely monitoring this development, as it may influence the embedded finance landscape by introducing new digital payment solutions and frameworks for financial transactions.

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.