High expectations for Еmbedded finance transactions in coming years
Sharing the opinion of market experts and foreseeing the recent market developments and continued rise of embedded finance services, Payman Group has focused vigorously on this particular segment.
Research by the financial company Bain says that the transaction value of embedded finance is expected to double by 2026 and reach $7 trillion. In the next few years, the market for software platforms and infrastructure providers that power embedded finance applications is expected to expand even more strongly. According to Finextra, these companies can expect huge revenue opportunities, reaching $51 billion in 2026.
The largest segments of embedded finance will remain payments and loans, followed by business lending, which is expected to increase fivefold within the same period.
The same study found that platform businesses are best positioned to benefit from the growth of the embedded finance sector. Adam Davis (Bain & Company Associate Partner) believes that: “Embedded finance has quietly become a significant part of the way consumers and businesses make payments and access funding. In the years to come, it will have a transformative effect on the relationship we have with our finances, removing friction from the sector and making financial services more contextual, accessible and helpful.”
Reinforcing this forecast is the research Temenos did in 2022, which found that three in five (60%) UK adults use embedded finance services when shopping online. The scope of researched services covered:
- E-wallet use, which has increased by as much as 42% in the past year;
- The use of BNPL solutions with a growth of 17%;
- Donations to charity and transfers of personal investments with a 15% increase;
- Buying insurance for a high-value product rose 13%;
- Taking out a loan at checkout to cover the cost of expensive items climbed 6%.
These recent research and business expectations paint brighter days ahead for the embedded finance industry, as more opportunities and growth potential will unfold.
Source:
https://fintech.global/2022/09/14/is-the-use-of-embedded-finance-about-to-skyrocket/