DUBLIN, The “Global Embedded Finance Business and Investment Opportunities – 50+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments – Q1 2022 Update” report has been added to ResearchAndMarkets.com’s offering.
The global 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 the publisher’s 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.
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. The publisher 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, the publisher 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 article was shared with Prittle Prattle News as a Press Release by PRNewswire
