Embedded finance market to hit $228 billion by 2028

A new study has found that by 2028, embedded finance revenue will increase 148%; from $92 billion in 2024 to $228 billion in 2028.

Embedded finance market to hit $228 billion

This growth is driven by increasing market maturity and consumer confidence; supported by greater acceptance and applications, particularly within B2B contexts.

Technological Developments Unlocking Potential

The research found that new advances within embedded finance are driving growth within specific use cases.

For example, multi-rail payments are becoming more prevalent, with embedded finance players like Balance and Marqeta aggregating numerous Open Banking APIs to enable more seamless and cheaper payments across scenarios such as bulk disbursements or cross-border payments.

“B2B embedded financial services have strong potential. Comprehensive product suites are being deployed due to the utilisation of newly developed technologies,” notes Research author Matt Purnell.

“This encourages businesses to adopt embedded finance offerings; for example, expansive cross-border capabilities utilising consolidated APIs or cloud accounting solutions using artificial intelligence.”

Embedded Insurance on the Rise

The report also identified embedded insurance as a segment experiencing a surge in adoption globally; growing 125% from 2024 to 2028.

Offerings are increasingly available for many eCommerce platforms, with the convenience provided incentivising consumers to take out policies mid-checkout.

Asian Pacific governments, including Singapore and Malaysia, have been promoting the uptake of digital insurance for consumer and commercial use.

The conveniences provided through embedded offerings will garner the segment significant growth across the region.

However, embedded insurance is still an uncommon offering from many leading vendors, despite the significant growth potential.

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