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Premium Report Details
Base Year: 2024
Companies covered: 20
Tables & Figures: 200
Countries covered: 19
Pages: 180
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Embedded Payments Market
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Embedded Payments Market Size
The embedded payments market was valued at USD 24.7 billion in 2024 and is estimated to register a CAGR of 30.3% between 2025 and 2034. The rise of E-commerce and digital apps is the primary reason for the increase in market growth.
Global online shopping continues to grow, so more companies integrate easy payment systems to their websites, mobile apps and digital platforms. These solutions provide a wide range of payment options including credit cards, debit cards and mobile wallets so that businesses can reach a wider variety of consumers. Since users want quicker and easier payment methods, these embedded systems undertake transactions directly within the users’ interface instead of sending them to third party payment service providers.
For example, the Census Bureau of the Department of Commerce estimated that retail e-commerce sales in the USA amounted to USD 300.1 billion in the third quarter of 2024. This was a 2.6% increase from the previous quarter. At the same time, total retail sales during the quarter were USD 1,849.9 billion which was a 1.3% increase from the second quarter. Sales of e-commerce transactions were 16.2% of total sales in Q3 2024. With the growth of consumer digital transactions and reliance on mobile devices, the need for embedded payment solutions is also expected to rise.
The subscription based models of business are increasingly gaining popularity and with this rise, the embedded payment market rises too. Sectors like software, food delivery, and eCommerce, like many others are making use of subscription services which require payments to be done easily and frequently. Now, embedded payments allow businesses to ensure their consumers and merchants have a smooth experience when it comes to automating billing, managing subscriptions, and paying.
Embedded Payments Market Trends
The ease of paying from mobile devices has modified customer expectations towards focus on comfort and adequate protection. With processed payments being done through smartphones and wearable tech, the use of debit and credit cards becomes less necessary. As a step further, businesses have started offering embedded payment solutions in their mobile apps, web pages, and even IoT devices to support effortless payments at the click of a button. The advanced security measures incorporated into mobile wallets such as tokenization, biometrics, and encryption help in improving consumer trust.
Due to the growth of mobile payments in industries such as retail, travel, and the entertainment sector, businesses are increasingly focusing their investments on embedded payment systems. This is aimed towards meeting the need for faster, safer, and more accessible digital payment options. In addition, major industry players are coming up with new ways to improve their business practices.
In September 2024, an example of this is Brex, who developed embedded payment systems for B2B software publishers. Brex provides software publishers with the ability to easily integrate its international corporate card and payment services into their systems through APIs and integrations, including the Mastercard virtual card system.
With concern to the embedded payments market, the privacy and security of data remains as one of the key issues. The sensitive financial information that customer and consumer details required for an embedded payment solution means businesses will continue to face scrutiny large problems regarding how they handle sensitive information. This combined with the increasing amounts of data breaches and cyberattacks illustrates the need for strong security which could help maintain customer loyalty and avoid legal ramifications.
Even GDPR, CCPA and other local regulation frameworks on consumer data protection offer strict rules as to how consumer data is handled. This is a charter that seeks to keep businesses in check, as non-compliance can result in fine penalties and loss of market reputation. Moreover, the introduction of external payment service providers adds a level of complexity that makes it even more difficult to guarantee uniform compliance and security across different applications.
Embedded Payments Market Analysis
Based on payment method, the embedded payments market is divided into digital wallets, credit/debit cards, bank transfers, and mobile payments. In 2024, the digital wallet segment held a market share of over 30% and is expected to cross USD 100 billion by 2034. The rising demand of mobile-first and contactless payment methods from consumers is contributing to the market growth of digital wallets. These wallets which allow users to make quick payments without the use of physical cards makes online and in-store purchases seamless.
In addition, the confidence in digital wallets is further strengthened by the advancement in security technologies like tokenization and biometric authentication that makes users believe their financial information is secure.
Based on deployment model, the embedded payments market is categorized into cloud and on-premise. The cloud segment held a market share of around 74% in 2024. Since companies aim to expand their base of payment methods across various geographies and platforms, adopting the cloud is an excellent opportunity for enabling scale without incurring heavy capital expenditure in physical infrastructure. The cloud permits businesses to integrate payment features into their sites, mobile apps, and IoT devices turning the payment process into a seamless experience for users.
In addition, the cloud has simplified data processing as the more powerful remote computation paired with analysis enables businesses to gain better understanding of customer behaviors, which, in turn, aids to enhance the payment methods, as well as increase protection for fraudulent activities. In addition, cloud service providers allow for remote maintenance of systems and updates to the software. This allows businesses to easily improve their systems.
U.S. dominated the North America embedded payments market with a major share of over 80% in 2024 and the U.S. leads the market in the region. With the epoch of digitalization and technological evolution, the US has seen a rise in the number of entrepreneurs setting up fintech payment solution firms alongside already established financial organizations. These days customers wish to make payments in a single click, from e-commerce to P2P transactions, which is a clear indication of how embedded payments are becoming central in the world of finance.
The use of mobile wallets, contactless payments, and the rise of Neobanks in North America has facilitated the trend of consumers being able to pay using single cards or in fact not having to use cards at all. Additionally, businesses are finding it easier to implement embedded payment features into their products and services because of the opening up of the embedded payments market with regulatory license, API’s for open banking, and the growing acceptance of these technologies.
On a more important scale, buyers trust and confidence in businesses is expected to improve with the more adoption of digital payment channels as a result of attention being directed to the regulatory and security policy frameworks like the general data protection regulation (GDPR) and the payment services directive 2 (PSD2). This enables the region to become competitive with lower cost and more advanced payment systems.
The regulation empowers the use of open banking payment systems and self-service customer payment authorizations that lead to the development of innovative payment services. The use of embedded payment solutions in systems increases transaction efficiencies and user satisfaction, placing a need on the latter for more investment by the financial and fintech companies.
A few countries like China, India, and those in southeast Asia have experienced a boom in payments made with a mobile device due to the rise of smartphones and digital wallets. The likes of Alipay, WeChat Pay, and Paytm are all embedded payment methods that people and economies have adopted as a part of life due to how easy they are to use.
With the rise of digital infrastructure and easier access to mobile phones, paying through mobile devices is fast becoming the most method of shopping online, paying bills, and transferring money. The transition becomes much smoother and easier for things such as moving to China or India due to the fact that the mobile payment infrastructure is far greater than the traditional banking setup.
Embedded Payments Market Share
Stripe and Mastercard hold a market share of over 10% in the embedded payments industry. For companies of every magnitude, Stripe exists to provide a solution that is friendly to developers. Stripe's highly complete set of APIs and fast integration allows businesses to make their solutions easier by adding embedded payments into their software with little work. Furthermore, Stripe’s global outreach is always expanding as he is adding constantly adding more features and methods of payment to help with cross-border payments and attracting companies with presence in many markets.
Through its international network and financial partnerships, Mastercard has made a push into embedded payments. Incorporating tokenization, AI, and open banking systems helps Mastercard develop embedded payment solutions that secure and scale effortlessly for businesses. Its purchases like Finocity and RiskRecon enhance its data analytics and fraud prevention capabilities so it can enter the growing fintech industry and offer universal solutions for various industries.
Embedded Payments Market Companies
Major players operating in the embedded payments industry include:
Competitors can now have a larger scope to provide for the segmented regions. By strategically acquiring other companies, international leaders are at the front of the embedded payments market by providing integrated technologies to their advanced API portfolios, point-of-sale systems, and real-time payment processors. Their innovations, such as AI controlled fraud prevention and multi-currency with enhanced user experience support, have solidified their powerful status in regions where digital payments and e-commerce are high.
Regional vendors continue to participate in the markets by utilizing their knowledge of local market structures to provide inexpensive solutions through targeted strategies, such as support for local currencies alongside regional payment regulations and other culturally inspired features. However, the increasing need for effortless, safe, and frictionless payment experience has compelled regional players to either come up with new ideas or partner with global leaders. The market is likely to undergo significant consolidation as domestic companies attempt to close technological gaps and strengthen their competitive positioning, which would fuel the increasing activity of mergers and acquisition.
Embedded Payments Industry News
The embedded payments market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2034, for the following segments:
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Market, By Payment
Market, By Deployment Model
Market, By Payment Method
Market, By Industry Vertical
The above information is provided for the following regions and countries: