Embedded Finance Market

Market Definition

Embedded finance is the integration of financial services such as payments, lending, insurance, and investments into non-financial digital platforms. It enables users to access these services directly within familiar applications, eliminating the need to switch to traditional providers. This approach simplifies transactions, enhances user experience, boosts customer engagement, and creates new revenue opportunities.

Embedded Finance Market Overview

The global embedded finance market size was valued at USD 83.27 billion in 2024 and is projected to grow from USD 95.41 billion in 2025 to USD 279.28 billion by 2032, exhibiting a CAGR of 16.58% during the forecast period. 

Market growth is driven by the shift toward platform-based ecosystems as businesses increasingly embed financial services directly within their digital platforms. Additionally, the surge in API-driven innovation is supporting this expansion.

Major companies operating in the embedded finance industry are Cybrid Inc, PayPal, Inc, FPL Technologies Pvt. Ltd., Finastra, Worldpay, LLC, Moshpit Technologies, Inc, Bajaj Finserv, Zopa Bank Limited, Fortis Payment Systems, LLC, Stripe, Inc., BlocHQ Ltd, Lendflow, Walnut Insurance Inc, Fluenccy Pty Limited, and Transcard Payments.

The increasing availability of large-scale financing and investment in fintech platforms is fueling market growth. Enhanced access to capital enables fintech companies to develop new products, promote technological capabilities, and expand their market reach.

• In December 2024, UAE-based Quantix Technology Projects secured a USD 500 million asset-backed securitization deal with Citi. This deal reflects growing institutional confidence in embedded finance infrastructure and promotes capital flow toward integrated financial service models in the Middle East.

Key Highlights:

1. The embedded finance industry size was valued at USD 83.27 billion in 2024.
2. The market is projected to grow at a CAGR of 16.58% from 2025 to 2032.
3. North America held a share of 36.33% in 2024, valued at USD 30.25 billion.
4. The embedded payments segment garnered USD 29.05 billion in revenue in 2024.
5. The B2B (Business-to-Business) segment is expected to reach USD 167.07 billion by 2032.
6. The others segment is anticipated to witness the fastest CAGR of 18.99% over the forecast period.
7. Asia Pacific is anticipated to grow at a CAGR of 17.87% through the projection period.

Market Driver

Expansion of Digital Ecosystems

The rapid growth of digital platforms such as e-commerce websites, gig economy apps, and mobile marketplaces is fueling the growth of the embedded finance market. These platforms are increasingly integrating financial services such as payments, lending and insurance to enhance user engagement and convenience. 

With the acceleration of digital-first behavior among consumers and businesses, these platforms are becoming key channels for delivering financial services directly within everyday experiences. This expanding digital ecosystem offers embedded finance providers substantial opportunities to scale across multiple industries.

• According to the Press Information Bureau (PIB), India’s digital economy is projected to contribute nearly one-fifth of the country’s overall GDP by 2030, surpassing traditional sectors. Over the past decade, digital industries have grown at 17.3% compared to the overall economic growth rate of 11.8%, with digital platforms expected to grow at approximately 30% in the coming years.

Market Challenge

Rising Data Security and Privacy Concerns

The embedded finance market faces a major challenge in ensuring data security and privacy, as financial services are integrated into platforms not originally designed to manage sensitive information. These platforms handle large volumes of personal and financial data, which makes them prime targets for cyberattacks. Any breach or misuse of this data can erode user trust and lead to severe regulatory implications.

To address this challenge, companies are investing in advanced encryption, tokenization, and secure API frameworks to protect sensitive information. They are partnering with regulated financial institutions and adopting industry standards. Additionally, they are implementing multi-factor authentication, real-time fraud detection, and strict access controls to enhance security measures.

Market Trend

Rise of Banking-as-a-Service

The rise of Banking-as-a-Service (BaaS) is transforming the delivery of financial services by enabling non-financial companies to integrate banking capabilities directly into their platforms. 

Through APIs and modular infrastructure, businesses can offer services such as payments, account management, lending and card issuance without becoming fully licensed banks. This shift is accelerating innovation, reducing time-to-market and enabling customized financial solutions tailored to specific user needs. BaaS is playing a key role in advancing the adoption of embedded finance across various sectors and use cases.

• In January 2024, Cybrid Inc. expanded its embedded finance API platform to include business-to-business (B2B) payments. The upgraded platform supports advanced features such as Know Your Business (KYB) onboarding, wire and ACH transfers, virtual FBO accounts, and integrated crypto onramp and offramp capabilities.

Embedded Finance Market Report Snapshot

Segmentation	Details
By Type	Embedded Payments (Digital Wallets/Mobile Wallets, In-App Payments, Contactless Payments/NFC Payments, Buy Now, Pay Later (BNPL), Others), Embedded Lending (Point-of-Sale (POS) Lending, Invoice Financing, Consumer Loans/Credit), Embedded Insurance (Contextual Insurance, Micro-insurance, Usage-Based Insurance (UBI)), Embedded Banking (Accounts and Debit Cards, Virtual Cards, Money Management Tools), Embedded Investment (Micro-investing, Robo-advisory Services, Stock Trading)
By Business Model	B2B (Business-to-Business), B2C (Business-to-Consumer)
By End-Use Industry	Retail & E-commerce, Transportation & Logistics, Healthcare, Media & Entertainment, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Type (Embedded Payments (Digital Wallets/Mobile Wallets, In-App Payments, Contactless Payments/NFC Payments, Buy Now, Pay Later (BNPL), Others), Embedded Lending (Point-of-Sale (POS) Lending, Invoice Financing, Consumer Loans/Credit), Embedded Insurance (Contextual Insurance, Micro-insurance, Usage-Based Insurance (UBI)), Embedded Banking (Accounts and Debit Cards, Virtual Cards, Money Management Tools), and Embedded Investment (Micro-investing, Robo-advisory Services, Stock Trading)): The embedded payments segment earned USD 29.05 billion in 2024, largely attributed to widespread adoption of digital wallets, BNPL, and contactless payment solutions integrated into consumer platforms.
• By Business Model (B2B (Business-to-Business) and B2C (Business-to-Consumer)): The b2b (business-to-business) segment held a share of 58.33% in 2024, due to rising demand for embedded financial tools that streamline corporate payments, lending, and treasury functions.
• By End-Use Industry (Retail & E-commerce, Transportation & Logistics, Healthcare, and Media & Entertainment): The retail & e-commerce segment is projected to reach USD 100.73 billion by 2032, owing to the growing integration of seamless checkout, embedded credit, and loyalty-linked financial services.

Embedded Finance Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America embedded finance market accounted for a share of 36.33% in 2024, valued at USD 30.25 billion. This dominance is attributed to rapid advancements in AI-powered payment technologies, strong integration with enterprise platforms, and increasing demand for flexible and cross-border payment solutions. 

Businesses across the region are adopting embedded finance to streamline operations such as disbursements, receivables, and supply chain payments. The regional market further benefits from a mature digital infrastructure and the widespread adoption of virtual cards and automated financial tools.

Additionally, players are focusing on localized and scalable payment solutions tailored to both B2B and B2C needs is fostering innovation and fostering regional market expansion.

• In May 2025, Transcard partnered with Thredd to support the global expansion of its SMART Suite, an embedded AI-driven payment orchestration platform. The partnership enhances payment method flexibility across B2B, B2C, and BNPL applications. The platform enables virtual card issuance, cross-border transactions, and seamless integration with ERP systems, supporting disbursements, receivables, and supply chain financing.

The Asia Pacific embedded finance industry is set to grow at a robust CAGR of 17.87% over the forecast period. This growth is fueled by rapid digital transformation and the widespread adoption of integrated financial services across diverse sectors. Large telecom and financial firms are leveraging their vast customer bases and extensive distribution networks to embed a wide range of financial products into everyday platforms. 

The use of advanced technologies, such as AI for underwriting and risk management, is enabling more personalized and efficient services. Additionally, the growing emphasis on improving operational strategies is advancing financial inclusion and accessibility, propelling domestic market growth.

• In January 2025, Bajaj Finance and Bharti Airtel partnered to establish one of India’s largest digital financial services platforms. The collaboration integrates Airtel’s extensive digital platforms with Bajaj Finance’s 27 product lines, AI-driven strategy, and underwriting expertise.  .

Regulatory Frameworks

• In the UK, the Financial Conduct Authority (FCA) oversees consumer protection, market integrity, and competition within the financial services industry.
• In India, the Reserve Bank of India (RBI) regulates the banking sector, including non-banking financial companies (NBFCs), with guidelines focused on consumer protection, financial inclusion, and stability.
• In the U.S., the Federal Reserve Board supervises the banking system and ensures financial stability, including oversight of banks that engaged in embedded finance transactions.

Competitive Landscape

Major players in the embedded finance industry are expanding their capabilities by integrating specialized payment solutions into systems. They are focusing on enhancing the efficiency and scalability of embedded financial services to deliver seamless commerce experiences. 

Additionally, players are leveraging complementary technologies and expertise to strengthen the platform capabilities and accelerate the deployment of embedded finance solutions across diverse industries.

• In July 2024, Fortis acquired MerchantE’s NetSuite payments division to enhance its capabilities in embedded ERP payment solutions. By integrating MerchantE’s expertise within the NetSuite ecosystem, Fortis aims to deliver more efficient, seamless, and scalable embedded financial services for its customers, reinforcing its commitment to streamlined commerce experiences.

List of Key Companies in Embedded Finance Market:

• Cybrid Inc
• PayPal, Inc
• FPL Technologies Pvt. Ltd.
• Finastra
• Worldpay, LLC
• Moshpit Technologies, Inc
• Bajaj Finserv
• Zopa Bank Limited
• Fortis Payment Systems, LLC
• Stripe, Inc.
• BlocHQ Ltd
• Lendflow
• Walnut Insurance Inc
• Fluenccy Pty Limited
• Transcard Payments.

Recent Developments (Partnerships/Expansion)

• In August 2024, Canadian fintech company KOHO partnered with Walnut Insurance to launch tenant insurance for its members across several provinces. The product provides multiple coverage levels protecting personal items, liability, property damage, and medical payments, thereby enhancing KOHO’s financial services portfolio.  The integration marks KOHO’s continued expansion in embedded finance, offering users streamlined access to insurance.
• In August 2024, Walnut Insurance secured USD 4.6 million in funding to expand its embedded insurance technology platform. The investment will support Walnut’s goal to modernize insurance distribution by enabling seamless integration of insurance products into digital platforms.