According to PayNXT360, Embedded Finance industry in Indonesia is expected to grow by 40.8% on annual basis to reach US$2,595.1 million in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 32.4% during 2024-2029. The embedded finance revenues in the country will increase from US$2,595.1 million in 2024 to reach US$10,549.9 million by 2029.

Indonesia’s embedded finance market is experiencing explosive growth, fueled by a young, tech-savvy population, rising internet penetration, and a supportive regulatory environment.
Embedded finance integrates financial services seamlessly within non-financial platforms. This creates a frictionless user experience, driving engagement and loyalty. In Indonesia, with its large unbanked population and growing digital adoption, embedded finance holds immense potential.

Key Drivers of Indonesia Embedded Finance Market

? Increasing Digital Adoption: Indonesia boasts a high internet penetration rate, with over 70% of the population connected. This creates a fertile ground for digital financial services.
? Unbanked and Underbanked Population: A significant portion of Indonesians lack access to traditional banking services. Embedded finance provides them with convenient financial tools. In Indonesia, Southeast Asia’s largest economy more than 74% of the population is unbanked or underbanked.
? Government Support: The Indonesian government actively promotes financial inclusion and innovation in the fintech sector, creating a supportive regulatory environment.
In 2023, Finfra, the one-stop shop for companies launching white-labelled lending products in Indonesia, has announced it raised $1 million in funding. The funding round was a collaborative effort by DSX Ventures and Seedstars International Ventures, regional fintech experts Cento Ventures and Fintech Nation, Baltic-based startup support incubators FirstPick and BADideas Fund, and Silicon Valley-based Hustle Fund
? Rising Smartphone Penetration: The widespread use of smartphones facilitates easy access to embedded financial services. In 2022, a staggering 80% of Indonesia’s population owned a smartphone, and over 212 million users accessed the internet from their mobile phones. With more than 7.7 billion downloads and a collective 179 billion hours on mobile in 2022, Indonesia is the fifth-largest mobile market in the world. Remarkably, Indonesian users spent the most time on mobile daily, surpassing 5.7 hours per day.
? Demand for Convenience: Consumers increasingly seek seamless and integrated financial solutions within the platforms they already use.
Leading Players of Indonesia Embedded Finance Market: Several players are actively shaping the Indonesian embedded finance landscape:
? Fintech Startups: Gojek, OVO, and Kredivo are prominent players offering embedded lending, payments, and wealth management solutions within their platforms.
? Traditional Financial Institutions: Banks like Bank Central Asia (BCA) and Mandiri are partnering with tech companies to offer embedded financial services.
? Telecoms Companies: Telkomsel and Indosat Ooredoo are leveraging their extensive user base to offer embedded financial services, particularly mobile payments.

Major Innovations and Deals of Indonesia Embedded Finance Market:

? In Mar 2024, Qoala has secured $47 million in a new round co-led by PayPal Ventures and MassMutual Ventures, the five-year-old startup. MUFG Innovation Partners, Omidyar Network, and existing backers Flourish Ventures, Eurazeo, and AppWorks also participated in the Series C funding, which brings Qoala’s total funding to more than $130 million since its inception.
? The most notable deals, buy now, pay later company Kredivo announced a $270 million investment led by Japan’s Mizuho Bank in March, while peer Investree raised about $231 million in Series D funding, led by Qatar’s JTA International Holdings last month. Amartha, meanwhile, raised $25 million in debt funding in March from IFC, and $100 million from San Francisco-based investment firm Community Investment Management
? In Jun 2023, Finfra, a platform for businesses seeking to launch white-labelled lending services in Indonesia, has disclosed a successful funding round. The company has secured an impressive $1m investment, further solidifying its footprint in the dynamic financial market of Southeast Asia. The capital injection was an outcome of a concerted effort from multiple investors including DSX Ventures and Seedstars International Ventures.
This report provides a detailed data-centric analysis of the embedded finance industry, covering lending, insurance, payment, wealth and asset based finance sectors market opportunities and risks across a range of different sectors. With over 75+ KPIs at the country level, this report provides a comprehensive understanding of embedded finance market dynamics, market size and forecast.

It breaks down market opportunities by type of business model, consumer segment, and distribution models. In addition, it also provides detailed information across a range of different segment in each sector of embedded finance. KPI revenue help in getting an in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.