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

Germany 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 6.8% annually to reach US$8,158.9 million in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 21.4% from 2024 to 2029. The country's embedded finance revenues will increase from US$8,158.9 million in 2024 to reach US$21,514.2 million by 2029.

Germany's embedded finance sector has experienced rapid growth due to strategic partnerships, innovative product launches, and supportive regulatory changes. The integration of financial services into everyday activities is enhancing convenience and personalization for consumers, while ongoing adjustments in regulations ensure data privacy and security.

Growth in the Embedded Finance Sector

Over the past few months, Germany has witnessed significant growth in the embedded finance sector, driven by increased partnerships between banks, fintech companies, e-commerce platforms, and other non-financial entities. These collaborations have enabled the seamless integration of financial services into everyday activities, such as shopping, travel, and digital communication.

Key Developments in the Embedded Finance Sector

Product Launches and Innovations

Embedded Insurance Innovations: Numerous startups have introduced new embedded insurance products, capitalizing on the growing insurtech wave. These products are designed to integrate seamlessly into various platforms, offering users tailored insurance solutions based on their specific needs and behaviors.

Frictionless In-App Payment Solutions: There has been a rise in the launch of embedded payment solutions that facilitate smoother in-app transactions. These innovations include one-click payment features in e-commerce and ride-hailing apps, enhancing user experience by making transactions faster and more convenient.

Hyper-Personalized Financial Products: Companies are leveraging data analytics to offer highly personalized financial products, such as microloans recommended at checkout based on individual purchase histories, enhancing the relevance of financial services to consumers.

Strategic Partnerships

Solaris and Samsung Electronics, Grover, Navit: In 2024, Solaris, a leading player in the German banking market, forged unique partnerships with brands such as Samsung Electronics, Grover (a technology rental platform), and Navit (a B2B mobility platform) to launch innovative embedded finance products.

Vodeno and Swan: New generation embedded finance providers like Vodeno and Swan have also been venturing into interesting partnerships in Germany.

Mercedes Benz, Visa and Mastercard: German automaker Mercedes Benz is experimenting with Visa and Mastercard to enable tokenized payments in cars, demonstrating the growing integration of embedded payments in the automotive industry.

Regulatory Changes

Support for Digitalization: The German government continues to promote digitalization across industries, which includes fostering the growth of embedded finance solutions. This initiative aims to integrate financial services into various sectors, enhancing efficiency and accessibility for consumers and businesses alike.

Regulatory Framework Adjustments: There have been ongoing discussions regarding the adaptation of regulatory frameworks to accommodate the rapid growth of embedded finance. This includes considerations for open banking regulations and compliance measures that ensure data security and consumer protection while facilitating innovation.

Focus on Data Privacy and Security: With financial services integrating into non-financial platforms, there's a greater emphasis on data privacy. Regulatory bodies are reinforcing compliance with laws like the General Data Protection Regulation (GDPR) to protect consumer data as embedded finance solutions expand.

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 Germany. Below is a summary of key market segments:

Germany 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

Germany 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

Germany 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

Germany 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

Germany Embedded Wealth Management Market Size and Forecast

Germany 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.