Global embedded finance revenue to ‘surpass $228bn’ by 2028

Global embedded finance revenue is set to jump 148 per cent over the next four years, according to new research.

The study by Juniper Research indicates that by 2028 revenue in the market will increase from $92 billion to $228 billion.

The company said that growth will be driven by “increasing market maturity” as well as consumer confidence.

It went on to say that higher revenue would be further supported by greater acceptance and applications, particularly within the B2B market.

The research also found that new advances within the market are driving growth for specific use cases, for example multi-rail payments.

It says that embedded finance companies such as Balance and Marqeta have been aggregating numerous Open Banking APIs to allow for cheaper payments across areas such as bulk disbursements or cross-border payments.

Research author Matt Purnell said that with comprehensive product suites being rolled out due to the use of newly developed technologies, B2B embedded financial services have “strong potential”.

“This encourages businesses to adopt embedded finance offerings; for example, expansive cross-border capabilities utilising consolidated APIs or cloud accounting solutions using artificial intelligence,” he continued.

The report also identified embedded insurance as a segment experiencing a surge in adoption globally; predicted to grow by 125 per cent from 2024 to 2028.

According to Juniper Research, embedded insurance is increasingly available for e-commerce platforms, with the convenience provided "incentivising consumers to take out policies mid-checkout".

It said that while Asian Pacific governments including Singapore and Malaysia have been promoting the uptake of digital insurance for consumer and commercial use, it is still an uncommon offering from many leading vendors, despite significant growth potential.

Share Story:

Recent Stories

Safeguarding economies: DNFBPs' role in AML and CTF compliance explained
Join FStech editor Jonathan Easton, NICE Actimize's Adam McLaughlin and Graham Mackenzie of the Law Society of Scotland as they look at the role Designated Non-Financial Businesses and Professions (DNFBPs) play in the financial sector, and the challenges they face in complying with anti-money laundering and counter-terrorist financing regulations.

Ransomware and beyond: Enhancing cyber threat awareness in the financial sector
Join FStech editor Jonathan Easton and Proofpoint cybersecurity strategist Matt Cooke as they discuss the findings of the State of the Phish 2023 report, diving into key topics such as awareness of cyber threats, the sophisticated techniques being used by criminals to target the financial sector, and how financial institutions can take a proactive approach to educating both their employees and their customers.

Click here to read the 2023 State of the Phish report from Proofpoint.

Cracking down on fraud
In this webinar a panel of expert speakers explored the ways in which high-volume PSPs and FinTechs are preventing fraud while providing a seamless customer experience.

Future of Planning, Budgeting, Forecasting, and Reporting
Sage Intacct is excited to present FSN The Modern Finance Forum’s “Future of Planning, Budgeting, Forecasting, and Reporting Global Survey 2022” results. With participation from 450 companies around the globe, the survey results highlight how organisations are developing their core financial processes by 2030.