PUBLISHER: Allied Market Research | PRODUCT CODE: 1344502
PUBLISHER: Allied Market Research | PRODUCT CODE: 1344502
According to a new report published by Allied Market Research, titled, "Embedded Finance Market," The embedded finance market was valued at $66.8 billion in 2022, and is estimated to reach $622.9 billion by 2032, growing at a CAGR of 25.4% from 2023 to 2032.
The rising trend of digital transformation in several sectors including finance is the key factor driving growth of embedded finance market, as it is revolutionizing the way financial services are delivered and consumed. Furthermore, as consumers increasingly prioritize seamless and hassle-free experiences, they seek out financial services integrated within their everyday activities and interactions. Hence, customer demand for convenience acts as a catalyst, prompting businesses across various industries to embed financial services within their existing platforms and meet the evolving needs of their users. In addition, the expansion of embedded finance on a global scale, driven by financial inclusion initiatives, has the potential to transform the way people manage their finances and drive economic growth in previously untapped markets. However, regulatory challenges act as a significant restraint for the embedded finance market, as the regulatory laws involve the integration of financial services into non-financial platforms or products and blur the traditional boundaries between different sectors and raises complex regulatory issues. Moreover, different countries have varying regulatory environments, making it difficult for businesses operating across borders to navigate the complex compliance requirements. As a result, many companies face barriers to scaling their embedded finance offerings globally, limiting the market's expansion potential. On the contrary, by integrating financial services directly into platforms, companies can automate financial processes, reducing manual intervention and associated costs. This streamlines operations, improves efficiency, and enables real-time transactions, benefiting both businesses and consumers. Hence, automation and efficiency will provide lucrative opportunity for the growth of the market.
The embedded finance market is segmented on the basis of type, industry vertical and region. By type, it is segmented into embedded payment, embedded lending, embedded investment, and embedded insurance. By industry vertical, it is segmented into retail and e-commerce, transportation and logistics, healthcare, media and entertainment, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in embedded finance market such as Block, Inc., Cybrid Technology Inc, Fortis Payment Systems, LLC ("Fortis"), Finastra International Limited, FinBox, Lendflow, PAYRIX, PayPal Holdings, Inc, Stripe, and Zopa Bank Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the embedded finance industry.