Global Embedded Finance Market 2024
The global embedded finance payment volume is projected to surpass EUR 6 trillion by 2025: New yStats.com report.
AI is playing a major role in enhancing customer experiences within the embedded finance sector
The rapid adoption of embedded finance signifies a global shift in financial service access. Despite its promising trajectory, the sector faces uncertainty, such as risks in deviating from established models, self-competition concerns, and collaboration complexities. These challenges, however, offer innovation opportunities, with technology, especially Artificial Intelligence (AI), playing a crucial role in shaping embedded finance's future. AI enhances customer experiences, facilitates robust risk management, and ensures effective fraud detection. While major global platforms leverage AI to streamline operations, its integration poses challenges in transparency, security, and risks across legal, operational, and reputational aspects.
Data security emerges as a top concern in Europe in embedded finance
The United States leads the global revenue race in embedded finance, generating over EUR 20 billion in 2022, with the global market expected to exceed EUR 6 trillion in payments by 2025. Moreover, fintech platforms envision a non-financial future, with approximately three-quarters expecting most financial products to be offered outside traditional channels. Consumer retail takes the lead in sector support at 95%, followed by telecom and healthcare. Regionally, Europe anticipates significant growth, targeting more than EUR 150 billion by 2028, while the Asia-Pacific region is expected to generate more than double that number by 2024. Notably, in embedded finance, data security emerged as a top concern in Europe as of April 2023.
- 1. Key Takeaways
- 2. Management Summary
- 3. Global
- Overview of Embedded Finance Ecosystem, January 2024 (1 of 2)
- Overview of Embedded Finance Ecosystem, January 2024 (2 of 2)
- Overview of AI Use in the Embedded Finance Ecosystem, January 2024 (1 of 2)
- Overview of AI Use in the Embedded Finance Ecosystem, January 2024 (2 of 2)
- Embedded Finance Revenue, by Country, in USD billion, 2022
- Embedded Finance Metrics, in USD trillion, 2025f
- Share of Fintechs Who Believe That The Majority of Financial Products Will Be Offered Via Non-Financial Platforms in the Future, in %, 2023e
- Main Areas of Focus of Embedded Finance, in % of Leading Financial Technology Businesses, 2023e
- Top Segments Supported by Embedded Finance, in % of Leading Financial Technology Businesses, 2023e
- Share of Leading Financial Technology Businesses Who Primarily Support B2B2C Models in Consumer Retail, in %, 2023e
- Share of Leading Financial Technology Businesses Who Noted That The Goal of Embedded Finance Is Centered Around Enabling Seamless Financial Offerings, in %, 2023e
- Aspects That Make The Embedded Finance Proposition Work, in % of Financial Technology Businesses, 2023e
- Top Strategic Priorities in The Next 5 Years, in % of Banking Executives, 2023e
- Top Trends That Banking Executives Believe Will Have the Biggest Impact on Banks in the Next 5 Years, in %, 2023e
- Breakdown of Top Ways in Which Banking Executives Expect Their Business Model to Evolve in the Next 1-2 Years, in %, 2023e
- Share of Banking Executives Who Agree That Banking Will Become “Embedded” in Consumers’ Lives And Businesses’ Value Chains, in %, 2023e
- Share of Banks That Rank Embedded Finance as an Important Revenue Stream, in %, 2023e
- Providers of Payment Services Used by Organization, in % of Commercial Payment Clients, August 2023
- Providers of Embedded Financing/BNPL Services to Organization, in % of Commercial Payment Clients, August 2023
- Banks’ Top 3 Priorities to Transform Commercial Payments in The Following 2-3 Years, in % of Banking and Payments Executives, August 2023
- Share of Banks That Are Prioritizing Investment in Embedded Payments Solutions, in %, August 2023
- Share of Consumers Agreeing With The Following Statements Related to Digital and Mobile Wallets, in %, April 2023
- 4. USA
- Share of Mobile Wallet Users Who Have Made a Purchase Via a Retailer’s Embedded Mobile App, in %, 2023e
- Share of Respondents Who Would Consider Getting Financial Services From a Non-Financial Provider, in %, 2023e
- Share of Respondents Who Would Not Consider Banking With a Non-Financial Provider, in %, March 2023
- 5. Europe
- 5.1. Regional
- Embedded Finance Market Size, in EUR billion, 2023e & 2028f
- Top Concerns When It Comes to Embedded Financial Services and Products, in % of Respondents, April 2023
- Breakdown of Monthly Shopper Engagement Increase With Brands Due to Embedded Finance, in %, May 2023
- Behavior Based On the Cost of Living, in % of Respondents, May 2023
- Commercial and Loyalty Benefits of Embedded Finance From Brands, in % of Respondents, May 2023
- Top Use Cases of BaaS in Retail in the Next 1-3 Years, in % of Executives, 2023e
- Top Use Cases of BaaS in Business in the Next 1-3 Years, in % of Executives, 2023e
- Biggest Opportunities for BaaS Providers, in %, 2023e
- 5.2. UK
- Share of Mobile Wallet Users Who Have Made a Purchase Via a Retailer’s Embedded Mobile App in the Past Year, in %, 2023e
- Share of SMEs That Plan to Use Embedded Financial Service Products More in The Next 12 Months, in %, March 2023
- Biggest Benefits of Embedded Finance Use, in % of SMEs, March 2023
- 6. Asia-Pacific
- 6.1. Regional
- Embedded Finance Market Size, in USD billion, 2022 & 2024f
- 6.2. Australia
- Share of Mobile Wallet Users Who Have Made a Purchase Via a Retailer’s Embedded Mobile App in The Past Year, in %, 2023e
- BNPL Sales, in AUD billion, FY 2021 & FY 2022
- 6.3. New Zealand
- BNPL Transaction Value, in USD billion, 2023e & 2026f
Research Assistance
Download our eBook: How to Succeed Using Market Research
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook