Embedded Payments Market Size - By Payment, Deployment Model, Payment Method, Industry Vertical, Growth Forecast, 2025 – 2034

Embedded Payments Market Size

The global embedded payments market size 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 platforms is expected to drive market growth. As online shopping continues to surge globally, businesses are increasingly integrating seamless payment solutions into their websites, mobile apps, and digital platforms.

Consumers demand faster, more convenient ways to pay, and embedded payments enable transactions directly within the user interface without redirecting to third-party payment gateways. Additionally, embedded payment solutions facilitate a range of payment methods, including credit/debit cards and mobile wallets making it easier for businesses to cater to diverse consumer preferences.
 

For instance, in November 2024, the Census Bureau of the Department of Commerce reported that U.S. retail e-commerce sales reached an estimated USD 300.1 billion in the third quarter of 2024, marking a 2.6% rise from the previous quarter. Meanwhile, total retail sales for the same period were pegged at USD 1,849.9 billion, up by 1.3% from the second quarter. E-commerce transactions constituted 16.2% of the total sales in Q3 2024. With growing consumer reliance on mobile devices and digital transactions, the demand for embedded payment solutions is expected to continue growing rapidly.
 

The expansion of subscription-based business models is anticipated to propel the embedded payment market growth. Subscription services, which are increasingly popular across industries such as entertainment, e-commerce, software, and even food delivery, require seamless, recurring payment solutions. Embedded payments enable businesses to automate billing, manage subscriptions, and process payments effortlessly, ensuring a smooth experience for both consumers and merchants.
 

Embedded Payments Market Trends

The widespread adoption of mobile payment solutions has shifted consumer expectations regarding convenience and security in transactions. Consumers are increasingly using their smartphones and wearables for everyday payments, reducing the need for physical credit or debit cards. This shift has pushed businesses to integrate embedded payment solutions into their mobile apps, websites, and even IoT devices, allowing for seamless, one-click payment experiences. With features such as tokenization, biometrics, and encryption, mobile wallets offer enhanced security, which is critical in building consumer trust.
 

As mobile payments continue to gain momentum across all sectors such as retail, travel, and entertainment companies are increasingly investing in embedded payment solutions to cater to the growing demand for faster, safer, and more convenient digital payment options. Additionally, to gain business capabilities major players are launching new solutions in the market. In September 2024, Brex launched embedded payments solutions for B2B software vendors. The solution leverage APIs and issuing integrations including Mastercard’s virtual card platform to enable software vendors to integrate Brex’s global corporate card and payments capabilities directly into their platform.
 

Data privacy and security concerns pose a significant challenge for the embedded payments market. As embedded payment solutions handle sensitive financial data, businesses face growing scrutiny over how they store, process, and protect consumer information. The rise in data breaches and cyberattacks underscores the importance of robust security measures, not only to uphold customer trust but also to sidestep potential legal consequences.
 

Regulatory frameworks, including GDPR, CCPA, and various local data protection laws, set stringent standards for handling consumer data. Non-compliance can lead to fines and damage to a company's reputation. Furthermore, incorporating third-party payment providers complicates the landscape, making it even more challenging to ensure consistent compliance and security across diverse platforms.
 

Embedded Payments Market Analysis

Based on payment method, the 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. Consumer preference for contactless and mobile-first payment solutions is propelling the growth of the digital wallet segment. These wallets enable users to make swift payments without the need for physical cards, ensuring a smooth experience both online and in-store.
 

Moreover, the adoption of digital wallets is bolstered by security technology advancements, including tokenization and biometric authentication, which instill confidence in users regarding the safety of their financial data.
 

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. As companies seek to expand their payment capabilities across regions and platforms, cloud-based solutions enable them to scale quickly without the need for heavy investments in on-premises infrastructure. With cloud deployment, businesses can easily integrate embedded payment solutions into their websites, mobile apps, and IoT devices, providing a seamless, secure payment experience for users.
 

Cloud-based systems also offer enhanced data processing power and real-time analytics, which enable businesses to better understand customer behavior, optimize payment processes, and improve fraud detection. Moreover, cloud providers offer automatic software updates, reducing the burden on businesses to maintain and upgrade their systems.
 

U.S. embedded payments market accounted for 80% of the revenue share in 2024, driven by a surge in digitalization and technological advancements, the U.S. has witnessed a boom in fintech startups, alongside established financial institutions, adopting embedded payment solutions. Today's consumers demand seamless, one-click payment options, spanning e-commerce to peer-to-peer transfers, underscoring the pivotal role of embedded payments in the financial landscape.
 

The ascent of mobile wallets, contactless payments, and neobanks in North America has further propelled this trend, enabling consumers to transact effortlessly, without physical cards. Moreover, with regulatory backing and the rising adoption of open banking APIs, businesses find it increasingly straightforward to embed integrated payment systems within their applications and platforms.
 

A significant growth driver for the Europe embedded payments market is the increasing focus on regulatory frameworks and security standards, particularly considering the General Data Protection Regulation (GDPR) and Payment Services Directive 2 (PSD2). These regulations have created a more secure and transparent environment for digital payments, fostering trust among consumers and businesses. The implementation of PSD2 has opened up the European market to more competitive and innovative payment solutions by promoting the use of open banking and secure, customer-authorized payments. This encourages financial institutions and fintech companies to integrate embedded payment solutions, which streamline transactions and enhance user experiences.
 

Countries such as China, India, and Southeast Asian nations have seen a surge in mobile-first payment solutions, driven by the widespread use of smartphones and digital wallets. Mobile payment platforms such as Alipay, WeChat Pay, and Paytm have revolutionized how consumers and businesses transact, making embedded payments an essential part of everyday life.
 

As internet connectivity improves and digital financial infrastructure grows, mobile payments are becoming the preferred method for consumers to make purchases, pay bills, and transfer funds. This trend is particularly strong in markets including China and India, where traditional banking infrastructure is less accessible, but mobile payments offer a convenient alternative.
 

Embedded Payments Market Share

Stripe and Mastercard hold a market share of over 10% in the embedded payments industry. Stripe focuses on providing developer-friendly solutions for businesses of all sizes. By offering comprehensive APIs and a seamless integration process, Stripe enables businesses to embed payments directly into their platforms with minimal effort. Stripe also emphasizes global expansion, continuously adding new features and payment methods to support cross-border transactions, making it attractive to businesses operating in multiple markets.
 

Mastercard has leveraged its global network and financial partnerships to expand its presence in embedded payments. By integrating tokenization, AI, and open banking technologies, Mastercard is creating seamless, secure, and scalable embedded payment solutions for businesses. Its acquisitions, such as Finicity and RiskRecon, strengthen its capabilities in data analytics and fraud prevention, allowing it to tap into emerging fintech markets and provide integrated solutions across various industries.
 

Embedded Payments Market Companies

Major players operating in the embedded payments industry include:

• Adyen
• Braintree
• Cashfree
• Mastercard
• Paddle
• PayPal
• Plaid
• Spreedly
• Stripe
• Worldpay
   

Embedded Payments Industry News

• In October 2024, Worldline partnered with Online Payment Platform to launch an embedded payments solution in Europe. The new tool enables platforms and marketplaces to integrate features such as split payments, escrow, and mediation handling. The embedded payments solution is currently available in the E.U., and Worldline plans to expand it to Switzerland and the U.K.
   
• In March 2024, Cashfree Payments launched ‘Embedded Payments,’ a platform-centric payment solution for software platforms. This solution equips software platforms with tools to facilitate seamless payment experiences for businesses, thereby fostering growth.
   

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

• In-app payments
• API-based payments
• Platform integrated payments
• Software-as-a-Service (SaaS) payments
• Marketplace payments

Market, By Deployment Model

• On-premise
• Cloud

Market, By Payment Method

• Digital wallets
• Credit/debit cards
• Bank transfers
• Mobile payments

Market, By Industry Vertical

• E-commerce
• Healthcare
• Financial services
• Retail
• Hospitality
• Transportation & logistics
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia