Report Description

According to PayNXT360’s Q4 2021 Embedded Finance Survey, Embedded Finance industry is expected to grow by 39.4% on annual basis to reach US$241,018.2 million in 2022.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 23.9% during 2022-2029. The embedded finance revenues will increase from US$241,018.2 million in 2022 to reach US$776,731.2 million by 2029.

The Asia Pacific is home to the leading embedded lending providers in the world. The region has been and continues to be a hotspot for some of the most advanced fintech markets globally. Furthermore, the growing number of technological advancements by fintechs has made the Asia Pacific region a world leader in fintech innovations.

Countries such as Australia, India, China, Singapore, Indonesia, and Malaysia recorded strong demand growth for embedded lending options in the previous four to eight quarters. The presence of a large young population in the region is primarily driving the demand and market growth.

In Europe, embedded lending is becoming increasingly popular among consumers due to the rising popularity of the buy now pay later lending model. Consumers are increasingly looking for convenient and innovative payments option for online purchases. BNPL mode of lending is the most popular among consumers due to its affordability and convenience. Some of the key players offering BNPL service include Klarna, PayPal Credit, and Splitit in the region.

Embedded lending is most popular in the United Kingdom compared to other countries in the European region. The United Kingdom is one of the early adopters of embedded lending options for making purchases. Shoppers in the United Kingdom observe retail finance as a convenient way to split the cost of expensive purchases.

The embedded insurance landscape is booming in Europe, and countries like the United Kingdom, Germany, and France have made significant contributions to the region’s embedded insurance business growth.

To remain competitive in the market and to keep pace with the ever-changing customer requirements, insurers in Europe are modifying their business models and working to improve their distribution channels. Furthermore, with the rising number of new entrants in the region, the European embedded insurance market is soaring. Considerable increases in fresh fundraising rounds are propelling the market to new heights.

According to PayNXT360 analysis, European insurtech start-ups have surpassed the total capital investment of 2020 by more than US$ 1 billion in the first quarter of the year 2021, with a total of nearly US$ 2 billion invested across more than 50 transactions. Over the next four to eight quarters, rising finance activities are likely to raise embedded insurance demand. For instance,

  • In June 2021, German digital insurance start-up Wefox has raised a $650 million Series C funding round led by Target Global. Wefox is a digital insurer that specializes in personal insurance products such as home insurance, auto insurance, and personal liability insurance. With the latest fundraising round, the company has reached a total worth of US$ 3 billion.
  • In June 2021, Bought By Many, a pet insurance provider based in London, United Kingdom, raised US$ 350 million in Series D funding, totaling the company’s value to over US$ 2 billion.
  • Both the companies are planning to utilize these funds to expand their operation across European countries.
  • PayNXT360 anticipates continued investment rounds in the embedded insurance industry in Europe over the next four to eight quarters.



The Africa & Middle East embedded payment industry is going through a trial phase, and incumbents in the payments market ecosystem must evolve to stay relevant in the industry, as the everchanging demand from clients is making the current system outdated.

Established and new-age fintech companies have invested heavily in embedded payment solutions in the last four to six quarters, resulting in market growth.

Moreover, customers expect e-commerce platforms to provide a smooth buying experience. Embedded payment can be the solution to this ever-growing client requirements. This also allows the companies to provide value-added benefits to clients and increase loyalty. Consequently, PayNXT360 expects strong market growth over the next four to eight quarters.

The embedded payments industry is still in its nascent stages of development in most of the big economies such as Egypt and the UAE. However, in the last six to eight quarters, it was observed that a spike in the number of start-ups in the embedded payment market, spurred by the collaborative efforts of the governments and other stakeholders, enhanced the payment systems.

The region has several diverse factors driving the market growth, including a vast economy, a large young population, and an abundant skilled workforce. As a result, the region has enormous potential to grow its fintech industry in 2022 and beyond.

This report provides global insights into key trends and drivers along with a detailed data centric analysis of market opportunities in embedded finance industry at global and country level. Region and countries included in this report are:

1. Global
2. Argentina
3. Australia
4. Brazil
5. Canada
6. China
7. France
8. Germany
9. India
10. Indonesia
11. Italy
12. Kenya
13. Mexico
14. Nigeria
15. Philippines
16. Russia
17. South Africa
18. Thailand
19. United Arab Emirates
20. United Kingdom
21. United States


Scope

This report provides global insights, along with an in-depth data centric analysis of the Embedded Finance industry, covering 50+ KPIs for each region and country (950+ charts and 750+ tables in all). Below is a summary of key market segments:

Embedded Finance Market Size and Forecast

Embedded Lending Market Size and Forecast

  • Embedded Lending by Consumer Segments, 2020 – 2029
  • - Business Lending
  • - Retail Lending
  • Embedded Lending by B2B Sectors, 2020 – 2029
  • - 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, 2020 – 2029
  • - 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 Insurance Market Size and Forecast

  • Embedded Insurance by Industry, 2020 – 2029
  • - 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 Insurance Type, 2020 – 2029
  • - Embedded Insurance in Life Segment
  • - Embedded Insurance in Non-Life Segment
  • Embedded Insurance by Type of Offering, 2020 – 2029
  • - Embedded Insurance in Product Segment
  • - Embedded Insurance in Service Segment



Embedded Payment Market Size and Forecast

  • Embedded Payment by Consumer Segments, 2020 – 2029
  • - B2B
  • - B2C
  • Embedded Payment by End-Use Sector, 2020 – 2029
  • - 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 Wealth Management Market Size and Forecast

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.