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

Nigeria 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 13.4% annually to reach US$1,118.3 million in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 25.5% from 2024 to 2029. The country's embedded finance revenues will increase from US$1,118.3 million in 2024 to reach US$3,482.1 million by 2029.

The embedded finance sector in Nigeria has rapidly expanded, driven by innovations like BNPL, investment platforms, and embedded insurance. Strategic partnerships and acquisitions, coupled with supportive regulatory changes, are fueling this growth. As digital payments, lending, and insurance offerings continue to evolve, financial inclusion and convenience for Nigerians are set to improve significantly in the coming months.

Growth in embedded Finance Sector

In the past few months, embedded finance in Nigeria has significantly grown. This growth is driven by the integration of financial services into non-financial platforms, impacting sectors like retail, transportation, and healthcare. The expansion is attributed to a vibrant fintech ecosystem, high mobile penetration, and supportive regulatory initiatives promoting financial inclusion.

In the next few months, the embedded finance market will continue to expand with a focus on improving digital payments, embedded lending, and insurance offerings, transforming how Nigerians access financial services.

Key Developments in embedded Finance Sector

Product Launches and Innovations

Buy Now, Pay Later (BNPL) Solutions: Various fintech companies have introduced BNPL options, allowing consumers to purchase and pay for them in installments. This trend is gaining traction as embedded finance facilitates the integration of these payment options within e-commerce platforms.

Investment Platforms: Companies like Bamboo and Trove have launched new features that allow users to invest in stocks and mutual funds directly through digital wallets and payment apps. This makes investing more accessible without needing to switch between different applications.

Embedded Insurance Products: Fintechs have begun offering embedded insurance solutions that integrate seamlessly into e-commerce and on-demand service platforms, providing users with coverage options at the point of sale.

Enhanced Digital Payment Solutions: New payment processing capabilities have been introduced by various fintech firms, enabling smoother and more efficient transactions for businesses and consumers alike, particularly in retail and online marketplaces.

Strategic Partnerships

Fintech Partnerships with Non-Financial Entities: Fintech companies in Nigeria are increasingly partnering with businesses across various sectors, such as retail, logistics, telecommunications, and consumer health, to offer embedded finance solutions. These partnerships enable the seamless integration of financial services into non-financial platforms, enhancing convenience and accessibility for consumers.

Mergers and Acquisitions

Moniepoint and Kopo Kopo: Nigerian fintech giant Moniepoint acquired Kenyan firm Kopo Kopo in 2023 to diversify its portfolio and expand its regional presence. This acquisition highlights the trend of mergers and acquisitions in the embedded finance space as companies seek to strengthen their offerings and gain a competitive advantage.

Regulatory Changes

Supportive Regulatory Framework: The Central Bank of Nigeria (CBN) has continued to promote inclusive finance through initiatives such as the regulatory sandbox for fintech innovation. This framework allows fintech companies to test new products in a controlled environment, facilitating the growth of embedded finance solutions.

Licensing of Payment Service Banks (PSBs): The CBN has been actively licensing Payment Service Banks, which are designed to enhance financial inclusion by providing basic banking services to underserved populations. This move supports the integration of financial services into non-financial platforms, fostering the growth of embedded finance.

Focus on Financial Inclusion: The Nigerian government and regulatory bodies have emphasized the importance of financial inclusion, encouraging partnerships between fintech companies and non-financial businesses. This approach aims to extend financial services to unbanked and underbanked populations through 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 in-depth, data-centric analysis of Embedded Finance industry in Nigeria. Below is a summary of key market segments:

Nigeria 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

Nigeria 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

Nigeria 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

Nigeria 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

Nigeria Embedded Wealth Management Market Size and Forecast

Nigeria 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.