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Dublin, April 20, 2023 (GLOBE NEWSWIRE) — The report “Global Embedded Finance Business and Investment Opportunities – 50+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments – Q1 2023 Update” has been added to ResearchAndMarkets.coms to offer.
The global Embedded Finance industry is expected to grow at an annualized rate of 39.4% to $267,530.2 million by 2023.
The embedded financial sector is expected to grow steadily over the forecast period, with a CAGR of 28.5% over the period 2023-2029. Embedded finance revenue in the country will rise from US$267,530.2 million in 2023 to US$862,171.7 million in 2029.
Globally, investment in the integrated finance sector has surged as both fintech companies and banking institutions seek to capitalize on the growing shift to embedded financial offerings. Digital platforms and companies are increasingly integrating financial services into their products and services to drive customer loyalty, revenue growth and convenience.
Private equity and venture capital firms also foresee strong growth in the industry, especially in countries like India, where the market will grow strongly as more consumers bank, invest, borrow and transact online. The market is also expected to see strong growth in the B2B embedded lending space as small businesses struggle to access working capital through traditional channels.
Integrated loans leading the growth of the embedded financial sector in the global market
The macroeconomic challenges faced by small and medium-sized businesses are driving demand for working capital worldwide. With merchants and retailers struggling to access credit through traditional channels due to rising interest rates, integrated lending providers around the world are experiencing strong growth.
In India, Rupifi announced that the company has provided more than INR 20 billion in loans to businesses since its inception in 2020. The company offers built-in credit solutions through leading B2B marketplaces across industries including FMCG, Pharma, Fashion and Electronics. .
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In the United States, Amazon has launched an advance payment feature for sellers on its platform. This feature will allow merchants to grow and scale their business, which will then drive the e-commerce giant’s revenue growth. Walmart, on the other hand, is also planning to introduce its “buy now, pay later” product to generate more revenue.
In Europe, many of the B2B BNPL providers have raised funding rounds to provide credit facilities to more merchants and retailers. The funding rounds indicate that global venture capital and private equity firms foresee growth in the B2B embedded payments space.
This trend is expected to continue over the next three to four years as the economic environment continues to drive demand for access to credit among small and medium-sized businesses worldwide.
The demand for embedded finance is growing significantly in the travel and tourism sector
Global travel activity has shown a strong rebound after two years of pandemic-induced restrictions. The pent-up demand for travel has also resulted in demand for integrated financing solutions, such as loans and insurance, at the cash register. As a result, companies forge strategic alliances and launch new products worldwide.
In Australia, Zip partnered with JetStar airlines to provide air travelers with a flexible payment solution at checkout. The service is expected to gain widespread popularity due to the rising cost of living and pent-up demand for travel.
In the United States, Afterpay partnered with Expedia, the global travel-based booking platform. The partnership will allow travelers to book flights, accommodations and other travel activities using the “Buy now, pay later” payment method.
In Europe, Visitors Coverage, the pan-European insurance company, launched an embedded software-as-a-service solution as demand for such solutions increased among travelers in the region.
From a short- to medium-term perspective, the author expects more of such strategic partnerships and product launches to meet the growing demand for integrated financial solutions among travelers.
Banking institutions can drive revenue growth by offering embedded financial services to small and medium-sized businesses
Digital platforms offer a range of financial services and have captured most of the embedded finance market in recent years. The growth of fintech companies has threatened the business of conventional banks, which have been left far behind by innovation and investment from digital platforms. However, the embedded finance sector is expected to grow significantly over the next three to four years, and conventional banks can still benefit from the expected growth.
According to a report from Accenture, integrated financing offerings from small and medium-sized businesses could generate as much as $92 billion in revenue for conventional banks by 2025. To capitalize on the growing market, banks need to strengthen and expand their relationships with consumers, while forging strategic alliances with leading digital platform providers.
By providing exceptional convenience and digital experiences, fintech companies have taken over the market share of banking institutions. As a result, traditional banking firms must also focus on delivering more value to their customers through innovative experience and customer service.
Region and countries included:
This report provides regional insights, along with an in-depth data-centric analysis of the Embedded Finance industry in Asia Pacific, covering over 50 KPIs for each region and country (650+ charts and 500+ tables in total).
Summary of key market segments for each country/region
Embedded finance market size and forecast
Integrated financing by key sectors
Retail
Logistics
Telecommunications
production
Consumer health
Others
Integrated financing by business model
Platforms
Someone who makes things possible
Regulatory Entity
Integrated financing by distribution model
Own platforms
Third Party Platforms
Market size and forecast for embedded insurance
Integrated insurance by industry
Embedded insurance in consumer products
Embedded insurance in travel and hospitality
Integrated insurance in the automotive sector
Embedded insurance in health care
Embedded real estate insurance
Embedded insurance in Transport & Logistics
Embedded insurance in others
Integrated insurance by consumer segment
Included insurance by type of offer
Integrated insurance by business model
Platforms
Someone who makes things possible
Regulatory Entity
Embedded insurance by distribution model
Own platforms
Third Party Platforms
Integrated insurance by distribution channel
Integrated sales
Bank insurance
Brokers/IFAs
Bonded Agents
Included insurance by insurance type
Integrated insurance in the Non-life segment
Market size and forecast for embedded loans
Integrated loans by consumer segment
Business Loans
Retail Loans
Integrated lending by B2B sectors
Integrated lending in retail and consumer goods
Integrated loans in IT and software services
Integrated loans in media, entertainment and leisure
Integrated loans in production and distribution
Integrated loans in real estate
Integrated loans in Other
Integrated lending by B2C sectors
Integrated loans in retail stores
Integrated loans in home improvement
Integrated loans in leisure and entertainment
Integrated loans in healthcare and welfare
Integrated loans in Other
Integrated loans by type
BNPL Loans
POS Loans
Personal loans
Integrated loans by business model
Platforms
Someone who makes things possible
Regulatory Entity
Integrated loans by distribution model
Own platforms
Third Party Platforms
Market size and forecast for embedded payments
Integrated payment by consumer segments
Embedded payment by end-use sector
Integrated payment in retail and consumer goods
Embedded payment in digital products and services
Integrated payment in payment of energy bill
Integrated payment in travel and hospitality
Integrated payment in leisure and entertainment
Integrated payment in health and wellness
Embedded payment in office supplies and equipment
Embedded payment in Other
Integrated payment by business model
Platforms
Someone who makes things possible
Regulatory Entity
Integrated payment model via distribution model
Own platforms
Third Party Platforms
Market Size and Forecast for Embedded Wealth Management
Asset Based Financial Management Market Size and Forecast
Asset-based financing by asset type
Asset-based end-user financing
For more information on this report, please visit https://www.researchandmarkets.com/r/wy453d
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