Embedded Finance Market Analysis

Embedded Finance Market Analysis

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Based on finance type, the embedded payment segment dominated around USD 27.3 billion revenue in 2022, due to the increasing demand for convenient & secure payment methods. As consumers seek seamless transactions and enhanced security, businesses are integrating payment services directly into their platforms. For instance, in June 2023, Mastercard, in collaboration with PayU, introduced Click to Pay in South Africa. The Click to Pay feature represents the next evolution in e-commerce technology, allowing consumers to make payments without entering their card details or storing sensitive information on the platforms of various merchants.
 

Based on end use, the embedded finance market from retail segment held over USD 17.3 billion revenue in 2022. The provision of cost-effective credit solutions for capital needs is propelling segment growth within the market. By offering accessible financial support, businesses can efficiently manage their working capital requirements, fostering growth and stability.

For instance, in July 2023, MyShubhLife, an embedded finance platform, collaborated with PayWorld, a fintech platform targeting retail merchants in India. MyShubhLife through its NBFC Ekagrata intends to offer PayWorld's retailers straightforward access to credit, addressing their working capital requirements. By harnessing its embedded technology, MyShubhLife plans to utilize PayWorld's extensive network of retailers, offering merchants flexible and cost-effective credit options. The increased accessibility to cost-effective credit options significantly drives retail segment growth within the market.
 

North America embedded finance market size accounted for 35% of the revenue share in 2022, owing to its technological prowess and high digital connectivity. The region's continuous technological advancements in fintech, blockchain, and Artificial Intelligence (AI) form a fertile ground for innovative embedded finance solutions. Extensive internet & smartphone usage creates a conducive environment for seamless adoption, fostering the integration of digital financial services into everyday life. These factors, coupled with strong regulatory support, position North America at the forefront of the industry landscape, driving its rapid growth and evolution.