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

United States 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 10.8% annually to reach US$30,829.8 million in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 23.8% from 2024 to 2029. The country's embedded finance revenues will increase from US$30,829.8 million in 2024 to reach US$89,596.9 million by 2029.

The embedded finance sector in the USA is rapidly evolving, driven by innovations and strategic partnerships across digital payments, lending, and insurance. Key developments include enhanced APIs, new payment solutions, and strategic collaborations. Regulatory updates are also reshaping the landscape, introducing new compliance requirements and increased scrutiny. This dynamic environment reflects a broader shift toward integrated financial services, enhancing accessibility and user experience.

Growth in the Embedded Finance Sector

In recent months, the embedded finance sector in the USA has seen significant growth, especially in digital payments, lending solutions, and insurance integration, driven by increased technology adoption and the shift toward online financial services.

Over the next few months, we expect to see more advancements in financial products and services. Many companies will integrate embedded finance offerings to improve customer experience and accessibility. This will lead to significant growth in the embedded finance market in the USA, reflecting a broader transformation in how consumers and businesses use financial services.

Key Developments in the Embedded Finance Sector

Product Launches and Innovations

Plaid's Enhanced API Offerings: Plaid has expanded its suite of APIs to facilitate easier integration of financial services into non-financial platforms. This enhancement allows companies to offer a broader range of financial products, including payments and loans, directly within their existing applications, thereby improving user experience and engagement.

Shopify's Payment Solutions: Shopify has introduced new embedded finance features that streamline the payment process for merchants. Their updates include enhanced ""buy now, pay later"" options, which have been shown to increase conversion rates and average order values significantly. This move reflects the increasing consumer demand for integrated financial solutions in online shopping.

Nium's Global Expansion: Nium has introduced embedded finance solutions, allowing businesses to offer financial services within their platforms, such as digital wallets and payment processing. This caters to the increasing demand for seamless financial transactions in various sectors.

Zelle's Integration with More Apps: Zelle has expanded partnerships to include more financial apps, enabling users to send and receive money within their favorite apps. This aims to enhance convenience in peer-to-peer transactions, tapping into the trend of embedded payment solutions. Chime's Banking Features: Chime has rolled out new features that enable businesses to embed banking services directly into their platforms. This includes functionalities like instant account creation and real-time transaction notifications, which are designed to enhance customer engagement and retention.

Chime's Banking Features: Chime has launched new features for businesses to embed banking services into their platforms, including instant account creation and real-time transaction notifications to boost customer engagement and retention.

Strategic Partnerships

Uber and Evolve Bank & Trust: Uber partnered with Evolve Bank & Trust and Branch to launch a debit Mastercard. This card helps Uber drivers to receive payments faster and earn rewards on fuel purchases, enhancing the financial services available to gig economy workers.

Toast and WebBank: Toast, the restaurant management software platform, collaborated with WebBank to offer merchant cash advances. This partnership provides short-term liquidity to restaurant owners, leveraging card receivables data to inform lending decisions.

Tesla and Origence: Tesla partnered with Origence to provide financing options for electric vehicle buyers through credit unions. This initiative aims to streamline the financing process for consumers purchasing Tesla vehicles.

BNY Mellon and Microsoft: BNY Mellon launched a collaboration with Microsoft to expand their capital markets data and analytics platform. This partnership is expected to enhance the financial services offered to BNY Mellon’s clients, integrating advanced technology into their operations.

Plaid and PortX: Plaid and PortX have partnered to enhance data access and optimize solutions for financial institutions, aiming to improve the efficiency of financial services
Mergers and Acquisitions
Marqeta and Power Financial Credit Union: Marqeta announced a partnership with Power Financial Credit Union, enabling the credit union to leverage Marqeta's card issuing and payment processing platform. This collaboration is expected to enhance the credit union's offerings, particularly in providing modern payment solutions to its members.

Regulatory Changes

CFPB Policy Statement: The Consumer Financial Protection Bureau (CFPB) issued a policy statement clarifying its approach to identifying abusive practices in financial services. This is relevant for larger nonbank companies offering digital wallets and payment applications, subjecting them to increased scrutiny and potential regulatory oversight.

INFORM Consumers Act: Fintech companies selling consumer products must comply with the INFORM Consumers Act, which requires them to verify seller information to prevent counterfeit goods. Noncompliance may result in significant penalties.

Regulation Z Updates: The CFPB finalized new rules regarding late fees under Regulation Z, establishing safe harbor thresholds for card issuers. These changes aim to protect consumers from excessive fees while ensuring that financial institutions can still operate effectively.

Increased Scrutiny on Sponsor Banks: There's been more scrutiny on sponsor banks in embedded finance. Reports show that the FDIC has targeted these banks with enforcement actions, highlighting their challenges when partnering with fintech companies.

Evolving Compliance Requirements: As embedded finance continues to grow, regulatory bodies are adapting their frameworks to address the unique challenges posed by this sector. Ensuring compliance entails adherence to various laws concerning data privacy, consumer protection, and anti-money laundering.

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 United States. Below is a summary of key market segments:

United States 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

United States 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

United States 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

United States 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

United States Embedded Wealth Management Market Size and Forecast

United States 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.