Fintech as a Service (FaaS) refers to providing financial technology solutions through APIs (Application Programming Interfaces) or cloud-based platforms. It enables businesses to integrate advanced financial services, such as payments, lending, insurance, and compliance, into their existing systems without building these solutions from scratch. FaaS providers offer the technical infrastructure and financial capabilities as a service, allowing companies to deliver financial products more efficiently.
The fintech as a service market consists of sales, by entities (organizations, sole traders, or partnerships), of fintech as a service allows companies to embed financial services into their existing offerings, streamlining transactions, payments, lending, insurance, and investment processes. Fintech as a Service is widely used by banks, financial institutions, insurance providers, e-commerce businesses, and other enterprises seeking to offer seamless financial solutions to their customers.
The global fintech as a service (FaaS) market was valued at $167,511.15 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 17.00%.
Surge In E-Commerce Growth
The surge in e-commerce growth fueled the growth of the fintech as a service (FaaS) market during the historic period. E-commerce growth refers to the rapid expansion of online retail driven by digital transformation, changing consumer behavior, and advancements in technology. Key factors behind this surge include increased internet penetration, mobile commerce adoption, digital payment innovations, and improved logistics, with digital payments playing a crucial role as global online payment transaction values exceeded trillions in recent years. Fintech as a Service (FaaS) accelerates e-commerce growth by providing seamless digital payment solutions, fraud prevention, and embedded financial services, enhancing customer experience and business efficiency. For instance, in November 2023, according to the International Trade Administration, a US-based government agency, the UK, the world's third-largest e-commerce market after China and the U.S., saw consumer e-commerce account for 36.3% of total retail as of January 2021, with online sales reaching peak annual growth in 2022, supported by a population of 67.7 million, 71.8 million mobile connections (2022), approximately 66 million internet users, and 57 million active social media users in 2022/2023. Therefore, the surge in e-commerce growth drove the growth of the fintech as a service (FaaS) market.
Innovative Payment Solution Expanding JCB Card Acceptance For Global Merchants
Major companies operating in the fintech as a service (FaaS) market are focusing on developing innovative advance card acceptance solutions to enhance digital payment accessibility for merchants. The card acceptance solution is a payment processing system that allows merchants to accept cards, enhancing businesses. For instance, in April 2024, Soft Space Sdn. Bhd., a Malaysia-based fintech-as-a-service (FaaS) provider, launched the JCB Payment Gateway to facilitate seamless JCB card acceptance for merchants. This solution streamlines payment integration through an application programming interface (API), allowing acquirers and facilitators to connect with JCB's vast network without direct infrastructure setup. By enabling cross-border transactions and expanding payment options, it strengthens e-commerce growth, particularly benefiting businesses in the tourism sector.
The global fintech as a service (FaaS) markets are fragmented, with a large number of small players operating in the market. The top 10 competitors in the market made up 9.80% of the total market in 2023.
Fintech As A Service (FaaS) Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global fintech as a service (FaaS) market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for fintech as a service (FaaS)? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The fintech as a service (FaaS) market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider fintech as a service (FaaS) market; and compares it with other markets.
The report covers the following chapters
- Introduction And Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by type, by technology, by application and by end-user.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis And Strategic Analysis Framework- Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable
- Global Market Size And Growth- Global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by type, by technology, by application and by end-user in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size And Growth- Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies- Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers And Acquisitions- Information on recent mergers and acquisitions in the market covered in the report. This section gives key financial details of mergers and acquisitions, which have shaped the market in recent years.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for fintech as a service (FaaS) market providers in terms of product/service offerings geographic expansion, marketing strategies and target groups next five years.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Type: Banking; Payment; Insurance; Investment; Lending; Other Types
- 2) By Technology: Artificial Intelligence (AI); Blockchain; Robotic Process Automation (RPA); Application Programming Interfaces (API); Other Technologies
- 3) By Application: Fraud Monitoring; KYC Verification; Compliance And Regulatory Support; Other Application
- 4) By End-User : Banks; Financial Institutions; Insurance Companies; Other End-Users
- Companies Mentioned: PayPal Holdings, Inc; Mastercard Inc; Fiserv, Inc; Block Inc; Stripe Inc
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita fintech as a service (FaaS) indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.