Embedded Finance Market Projected to Reach $228 Billion by 2028

A recent study by Juniper Research has forecasted significant growth for the embedded finance market, predicting a 148% increase over the next five years, according to Finextra. This surge is attributed to technological advancements, which are enabling new use cases and driving revenue growth in the sector.

The report highlights specific areas of growth, including multi-rail payments and the aggregation of open banking APIs. It also emphasizes the expanding prospects in the business-to-business (B2B) market, noting that businesses are increasingly adopting embedded finance offerings due to the deployment of comprehensive product suites enabled by new technologies.

Research author Matt Purnell commented on this trend, stating, «Comprehensive product suites are being deployed due to the utilization of newly developed technologies. This encourages businesses to adopt embedded finance offerings; for example, expansive cross-border capabilities utilizing consolidated APIs or cloud accounting solutions using artificial intelligence

In addition to finance, embedded insurance is also expected to experience significant growth, projected to increase by 125% over the next five years. This growth is largely driven by the prevalence of insurance offers on e-commerce platforms, which incentivize customers to purchase policies during the checkout process.

The Asia-Pacific region is expected to be a key driver of growth in the embedded insurance market. Governments in the region, such as those in Singapore and Malaysia, are actively promoting digital insurance, further fueling the expansion of this sector.

Despite the growth potential, the report notes that embedded insurance remains an «uncommon offering» from many leading vendors. However, with the continued advancement of technology and the increasing demand for seamless financial and insurance solutions, the market for embedded finance and insurance is expected to continue its rapid expansion in the coming years.

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