In essence, the study conducted by Juniper Research forecasts a substantial increase in revenue within the Embedded Finance sector by 2028. According to the study, Embedded Finance revenue is expected to surge by 148%, rising from USD 92 billion in 2024 to USD 228 billion in 2028. This growth trajectory is attributed to the maturation of the market and growing consumer trust, bolstered by expanding acceptance and applications, particularly in business-to-business (B2B) contexts.
The study highlights technological advancements as key drivers of growth in specific Embedded Finance use cases. For instance, multi-rail payments are gaining prominence, facilitated by Embedded Finance players such as Balance and Marqeta, which aggregate various Open Banking APIs to facilitate smoother and more cost-effective payments for scenarios such as bulk disbursements and cross-border transactions.
It's also worth pointing out that embedded insurance is identified as a segment experiencing significant adoption globally, with a projected growth of 125% from 2024 to 2028. According to Juniper Research, the convenience offered by embedded insurance offerings, particularly in ecommerce platforms, is enticing consumers to opt for policies during the checkout process. Governments in the Asia-Pacific region, such as Singapore and Malaysia, are actively promoting digital insurance uptake, further driving growth in this segment across the region.
Despite the substantial growth potential, embedded insurance remains a relatively uncommon offering from many leading vendors. However, the convenience it offers is expected to fuel significant growth in the coming years. The research suite provides a comprehensive assessment of the embedded finance market, analyzing over 70,200 data points across 60 countries over a five-year period. It includes a 'Competitor Leaderboard' and examines current and future market opportunities.
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