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

Japan 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 15.7% annually to reach US$8,890.7 million in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 27.7% from 2024 to 2029. The country's embedded finance revenues will increase from US$8,890.7 million in 2024 to reach US$30,247.5 million by 2029.

The embedded finance market in Japan has seen notable growth over the past few months, fueled by the increasing integration of financial services into non-financial platforms and the rising use of digital payments. Key areas like embedded lending and insurance are gaining momentum as businesses leverage these technologies to improve customer experiences and promote financial inclusion.

Embedded finance market in Japan has experienced substantial growth, driven by the integration of financial services into various platforms and the increasing adoption of digital payments. With promising future prospects, fueled by widespread smartphone use and ongoing digitalization, Japan is well-positioned for further expansion. Recent product launches and strategic partnerships demonstrate significant advancements in enhancing user experience and access to financial services. Coupled with supportive regulatory developments and government initiatives, Japan's embedded finance sector is set to continue evolving, fostering innovation while ensuring consumer protection and financial stability.

The future of Japan's embedded finance market is promising, with the potential for continued expansion. Driven by widespread smartphone use and ongoing digitalization across industries, the market is set to grow. As more companies adopt embedded finance strategies, Japan is well-positioned to use this technology to drive innovation and enhance access to financial services, fostering a sense of optimism among industry professionals and investors.

Product & Innovations

Stripe's Expanded Support for JCB

In November 2023, Stripe announced enhanced support for JCB, a major card network in Japan. This expansion allows businesses using Stripe to accept JCB payments, streamlining the payment experience for millions of users and incorporating JCB's services into various platforms.

Infcurion's Wallet Station for Tsuruha Group

In early 2024, Infcurion introduced a wallet station for Tsuruha Group's ""Happay"" smartphone payment service. This integration enables seamless mobile payments, reflecting the trend of embedding financial services into everyday retail experiences. These product launches in Japan's embedded finance sector are not just about innovation, but also about improving user experience and access to financial services. They underscore the ongoing efforts to make financial services more user-friendly and accessible, which should make the audience, particularly financial analysts, feel the tangible benefits of these developments.

Strategic Partnership

Chubb Insurance and Smartpay Partnership

In March 2024, Chubb Insurance and Smartpay collaborated to develop embedded insurance products for the Japanese market. This partnership allows consumers to access insurance directly at the point of sale, integrating insurance offerings into retail transactions.

Stripe and JCB Collaboration

In November 2023, Stripe extended its support for JCB, enabling businesses to accept JCB payments across various platforms. This collaboration facilitates a smoother payment experience and expands the reach of JCB's services. These partnerships highlight the trend of integrating financial services into non-financial platforms in Japan, enhancing customer experiences and driving innovation.

Regulatory Changes

Promotion of Cashless Transactions

The Japanese government's continued advocacy for a cashless society as part of its broader economic strategy is a clear sign of its commitment to innovation. This initiative supports integrating financial services into non-financial platforms, promoting the growth of embedded finance solutions and improving consumer convenience, which should make the audience, particularly industry professionals, feel the government's active role in shaping the industry.

Regulatory Framework for Fintech

The Financial Services Agency (FSA) has been refining the regulatory framework for fintech companies, including those involved in embedded finance. This includes streamlining licensing processes and enhancing consumer protection measures to foster innovation while ensuring transaction security.

Support for Digital Transformation

The government has highlighted the importance of digital transformation within traditional financial institutions. This includes encouraging collaborations between fintech startups and established banks to leverage embedded finance solutions, accelerating the adoption of innovative financial services.
These regulatory developments reflect Japan's commitment to advancing its embedded finance landscape, balancing innovation with consumer protection and financial stability.

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 Japan. Below is a summary of key market segments:

Japan 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

Japan 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

Japan 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

Japan 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

Japan Embedded Wealth Management Market Size and Forecast

Japan 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.