Embedded Finance industry in the region is expected to grow by 35.6% on annual basis to reach US$46,964.4 million in 2023.
The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 25.4% during 2023-2029. The embedded finance revenues in the country will increase from US$46,964.4 million in 2023 to reach US$134,874.7 million by 2029.
Across Europe, retailers are looking at embedded finance as an opportunity to drive revenue and accelerate business growth. E-commerce platforms and distributors are offering financial products, such as credits, loans, and even debit cards, to their customers. With more and more consumers changing the way they source financial services and moving out of traditional banking channels, the trend is projected to further accelerate in Europe.
Furthermore, with innovative embedded finance platforms making integration of regulated products into the customer journey as simple as creating an online account, the embedded finance industry is projected to record significant growth. As the appetite for embedded finance continues to grow, the mergers and acquisition trends are also expected to gain momentum in the European market from the short to medium-term perspective.
Fintech firms are launching embedded finance products amid growing demand in Europe
As more businesses seek to add another revenue source to their core business operations, firms are increasingly adding embedding financial services into their products and services. Amid the growing demand for such solutions, fintech firms are launching new products in the market. For instance,
In October 2022, Adyen, the Dutch fintech firm, announced the launch of new embedded finance products, Capital and Accounts. Capital allows digital platforms to offer finance solutions to businesses. The credit availability is based on historic payment data. On the other hand, Accounts allow users to run their finances on platforms where they do their business, while also allowing them to receive the funds instantaneously.
With the demand for working capital growing among businesses, especially for small and medium-sized enterprises, the author expects the Capital product launched by Adyen to gain widespread adoption among businesses across the region. Several players are competing for market share in the B2B embedded lending space, including MarketFinance and Amazon. The entry of Adyen into the space will further boost the competitive landscape in the European market from the short to medium-term perspective.
The demand for embedded finance is growing across Europe in the mobility sector
Embedded finance has shown growing prominence across different industry verticals. To drive customer loyalty, revenue streams, and customer basket, businesses across verticals have adopted embedded finance solutions. From the short to medium-term perspective, businesses in the mobility sector are also projected to follow suit, as the consumer appetite to access such services is growing in the mobility sector.
According to a report from Solaris and the Handelsblatt Research Institute, more than a third of the consumers in Germany, France, Italy, and Spain, open accounts and apply for credit with mobility brands. Italy has taken the lead over other countries in terms of consumers willing to use embedded finance services from mobility providers. This is followed by Spain, Germany, and France. In Germany, the trend is much higher among consumers aged 25 - 34.
Amid the growing trend, pay33, the Germany-based e-mobility payments firm, entered into a strategic collaboration with Swan, the embedded finance provider, in December 2022. Under the partnership, the firms will launch payment-enabled mobility cards for the e-mobility market. Furthermore, pay33 will also provide its users with a smart account, thereby bringing embedded financial services to the mobility sector.
From the short to medium-term perspective, more such strategic collaborations are expected to take place in the mobility sector. This will keep supporting the growth of the industry across the European region over the next three to four years.
Travelers are demanding embedded insurance services from their travel-based booking platforms in Europe
The pandemic has reiterated the need for insurance policies among consumers in Europe. With travel activities being the major source of Covid-19 infection, more and more travelers bought insurance to keep them protected in case of potential infection. This led to the demand for embedded insurance services and the trend has continued to grow ever since the pandemic outbreak.
As a result of this growing demand, more insurtech firms are launching embedded insurance products in the region. In November 2022, VisitorsCoverage, the travel insurtech firm, launched an embedded software-as-a-service to cater to the growing demand for insurance among travelers. Owing to its convenience, automated claim processing, reliable services, and instant fixed pay-outs, the demand is projected to further continue over the next three to four years.
Furthermore, the pent-up travel demand is projected to drive more revenue for travel booking platforms that offer embedded insurance services. Consequently, the author expects more players to offer such solutions on their platforms in Europe from the short to medium-term perspective.
This report provides regional insights into key trends and drivers along with a detailed data centric analysis of market opportunities in embedded finance industry at regional and country level.
Region and countries included in this report are:
1. Europe Embedded Finance Business and Investment Opportunities 2. Austria Embedded Finance Business and Investment Opportunities 3. Belgium Embedded Finance Business and Investment Opportunities 4. Denmark Embedded Finance Business and Investment Opportunities 5. Finland Embedded Finance Business and Investment Opportunities 6. France Embedded Finance Business and Investment Opportunities 7. Germany Embedded Finance Business and Investment Opportunities 8. Greece Embedded Finance Business and Investment Opportunities 9. Ireland Embedded Finance Business and Investment Opportunities 10. Israel Embedded Finance Business and Investment Opportunities 11. Italy Embedded Finance Business and Investment Opportunities 12. Netherlands Embedded Finance Business and Investment Opportunities 13. Poland Embedded Finance Business and Investment Opportunities 14. Russia Embedded Finance Business and Investment Opportunities 15. Spain Embedded Finance Business and Investment Opportunities 16. Switzerland Embedded Finance Business and Investment Opportunities 17. United Kingdom Embedded Finance Business and Investment Opportunities
All global, regional, and country reports mentioned above will have the following tables of contents:
1. About this Report
2. Embedded Finance Industry Market Size and Forecast
3. Embedded Finance Industry Market Size and Forecast by End Use Industry
4. Embedded Finance Industry Market Size and Forecast by Business Model
5. Embedded Finance Industry Market Size and Forecast by Distribution Model
6. Embedded Insurance Industry Revenue Trend Analysis, 2020-2029
7. Embedded Insurance Industry Market Size and Forecast by End Use Industry
8. Embedded Insurance Industry Market Size and Forecast by Consumer Segment
9. Embedded Insurance Industry Market Size and Forecast by Type of Offering
10. Embedded Insurance Industry Market Size and Forecast by Business Model
11. Embedded Insurance Industry Market Size and Forecast by Distribution Model
12. Embedded Insurance Industry Market Size and Forecast by Distribution Channel
13. Embedded Insurance Industry Market Size and Forecast by Type of Insurance
14. Embedded Insurance Industry Market Size and Forecast by Non-Life Insurance
15. Embedded Lending Industry Market Size and Forecast, 2020-2029
16. Embedded Lending Industry Market Size and Forecast by Consumer Segment
17. Embedded Lending Industry Market Size and Forecast by Business to Business (B2B) Sectors
18. Embedded Lending Industry Market Size and Forecast by Business to Consumer (B2C) Sectors
19. Embedded Lending Industry Market Size and Forecast by Type of Lending
20. Embedded Lending Industry Market Size and Forecast by Business Model
21. Embedded Lending Industry Market Size and Forecast by Distribution Model
22. Embedded Payment Industry Market Size and Forecast, 2020-2029
23. Embedded Payment Industry Market Size and Forecast by End Use Segment
24. Embedded Payment Industry Market Size and Forecast by Consumer Segment
25. Embedded Payment Industry Market Size and Forecast by Business Model
26. Embedded Payment Industry Market Size and Forecast by Distribution Model
27. Embedded Wealth Management Industry Market Size and Forecast, 2020-2029
28. Asset Based Finance Management Industry Market Size and Forecast, 2020-2029
29. Asset Based Finance Industry Market Size and Forecast by Type of Assets
30. Asset Based Finance Industry Market Size and Forecast by End User
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