Embedded finance revenue to grow 148% in four years

Embedded finance revenue has been forecast to grow to $228 billion by 2028, driven by increasing market maturity and consumer confidence, according to new research.

The study by Juniper Research revealed that embedded finance revenue will soar 148%, from $92 billion in 2024, to exceed $228 billion in four years’ time.

The research, published in the report ‘Global Embedded Finance Market 2024-2028’, identified new advances within embedded finance as driving growth within specific use cases.

Juniper Research cited the increased prevalence of multi-rail payments as an example, with players such as Marqeta and Balance aggregating Open Banking APIs to enable smoother and cheaper payments for bulk disbursements, or cross-border payments.

“B2B embedded financial services have strong potential,” said Matt Purnell, research author and a research analyst in Juniper Research’s fintech and payments team.

“Comprehensive product suites are being deployed due to the utilisation of newly-developed technologies. This encourages businesses to adopt embedded finance offerings; for example, expansive cross-border capabilities utilising consolidated APIs, or cloud accounting solutions using artificial intelligence.”

According to Juniper Research’s report, embedded insurance is on the rise, with an increase in adoption globally expected.

The report has forecast that embedded insurance revenue will increase 125% over the four-year period, as offerings on ecommerce platforms become more widely available, incentivising consumers to take out insurance policies mid-checkout.

Governments in countries such as Singapore and Malaysia have been promoting the uptake of digital insurance for consumer and commercial use, Juniper Research said.

Research published by NatWest Boxed and Boston Consulting Group in March found that UK retailers have reported “incremental” revenue growth of between 4% to 7% as a result of implementing embedded finance.

Retailers also revealed a boost in conversion rates from the use of embedded finance.