Embedded finance is a new trend which emerged in the fintech sector in the last two years. In the United States, the revenue generated by embedded finance in 2020 was estimated at 22.5 billion U.S. dollars, and was forecast to reach over 230 billion U.S. dollars by 2025. Embedded finance consists in integrating financial services and products in non-financial businesses, so that companies not operating in the financial services sector can independently provide financial solutions tied to their products or services.

The embedded finance market is projected to expand its roots at a strong CAGR of 16.5% during the forecast period. The market is likely to hold a revenue of US$ 63.2 billion in 2023 while it is anticipated to cross a value of US$ 291.3 billion by 2033.

Country-wise Insights

Category-Wise Landscape

The Embedded Finance Market Report is Segmented by Type (Embedded Payments, Embedded Insurance, Embedded Lending, Embedded Investments and Other Embedded Services ), End-User (Healthcare, Education, Retail & E-Commerce, Travel & Hospitality, Transportation & Logistics, and Telecom), Business Model (B2B, B2C), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East & Africa). The Report Offers the Market Size in Value Terms in USD for all the Above-Mentioned Segments.

The USA embedded finance market thrives in hubs like New York and San Francisco, supported by fintech innovation, venture capital funding, and robust regulatory frameworks.

Europe embedded finance market size reached US$ 21,511.2 million in 2022, and is likely to cross a mark of US$ 24,230.9 million in 2023. The market is set to expand at a CAGR of 14.5% during the forecast period.

Europe Embedded Finance Market Report Scope

Embedded finance market is set to achieve a value of USD 1029.02 Billion by 2032 with CAGR of 32.4% according to market projections.

It was estimated that the U.S. had by far the highest embedded finance revenue in 2022, with more than 26.5 billion U.S. dollars. The UK followed, with close to four billion U.S. dollars worth of revenue. Germany and Canada ranked third and fourth, and Brazil was the leading Latin American country in terms of embedded finance revenue.

The Embedded Finance market is experiencing rapid growth, projected to reach $4513.9 million in 2025. While the provided CAGR is missing, considering the significant technological advancements and increasing adoption of embedded financial services across various industries, a conservative estimate of a 25% CAGR (Compound Annual Growth Rate) from 2025 to 2033 seems plausible. This implies substantial market expansion, driven by factors like the rising demand for seamless customer experiences, the proliferation of fintech solutions, and the increasing availability of open banking APIs. The market segmentation reveals a strong preference for cloud-based solutions, reflecting the scalability and flexibility offered by this deployment model. Large and medium-sized enterprises (LMEs) represent a dominant segment, leveraging embedded finance to enhance customer engagement and streamline internal financial processes. Geographical analysis suggests a significant concentration of market activity in North America and Europe, reflecting the early adoption and well-established fintech ecosystems in these regions. However, Asia-Pacific is poised for rapid growth as digitalization accelerates and financial inclusion initiatives expand. The competitive landscape is characterized by a mix of established players and innovative startups, indicating a dynamic and evolving market with significant opportunities for growth and innovation. This robust growth trajectory is fueled by several key trends: the increasing integration of financial services into non-financial applications (e.g., buy-now-pay-later options within e-commerce platforms), the expanding use of APIs to facilitate seamless data exchange, and the rise of innovative payment technologies. Despite this positive outlook, challenges remain, including regulatory hurdles, cybersecurity concerns, and the need for robust data privacy measures. Addressing these challenges will be crucial to unlocking the full potential of the embedded finance market and ensuring sustainable, responsible growth in the coming years. The substantial market size and projected CAGR, coupled with ongoing technological advancements and evolving consumer preferences, position embedded finance as a key driver of innovation and disruption within the broader financial services industry.

U.S Banking As A Service Market size was valued at USD 116.84 Million in 2023 and is projected to reach USD 739.93 Million by 2030, growing at a CAGR of 26.55% from 2024 to 2030.

U.S Banking As A Service Market Executive Summary

Banking as a Service (BaaS) is a model that allows third-party financial service providers to integrate and offer banking functionalities without establishing a traditional banking infrastructure. Through APIs, BaaS enables seamless access to core banking services, such as payments, deposits, and loans. This approach empowers fintech companies, startups, or non-banking entities to develop and deliver financial products to end-users. BaaS fosters innovation, accelerates time-to-market for new financial solutions, and enhances customer experiences. By leveraging existing banking infrastructure, BaaS providers can focus on creating tailored financial products, fostering a more agile and competitive financial ecosystem. This collaborative framework encourages diversity in financial services and promotes the democratization of banking, making sophisticated financial tools accessible to a broader range of businesses and consumers.

In recent years, traditional banks have slowly adopted digital technologies, leaving behind the reliance on paper for more secure, digital management of their operations and overall capital through appropriate software and IT products. However, the efforts of licensed banking to provide consumers with a personalized kind of service have been limited. On the other hand, the growth of a number of non-finance/banking and newer fintech in providing customers with more personalized services have immensely grown, which is limited by the risk pertaining to obtaining banking licenses. As the Banking-As-A-Service (BAAS) allows the banks to provide consumer-centric services in partnership with other banking or non-banking or third-party entities, it is the main major driver for the growth of the overall market. Furthermore, the rising market for the embedded finance industry and open banking and API integration is expected to offer lucrative growth opportunities for the market.

United States banks that were looking into APIs to help develop BaaS, or banking-as-a-service, largely did so to leverage them for customized workflows. This is according to a survey held among bank representatives in the country, when asked about API strategies followed and their primary goals within their organization. APIs have increasingly become a trend topic within the finance industry since 2022, as they may enable a smoother user experience (i.e., embedded finance) or could be a way to help smoothen cross-border payments. The source states the focus on third-party integration was “unsurprising”, as – in their observation – most banks rely on third parties to provide digital technologies. There is no indication what is meant with “none of the above”, although the source believes it may be an indicator of how similar terms like BaaS, embedded finance or Open Banking are. When asked about BaaS specifically, roughly a third of all the U.S. banks found BaaS an opportunity to streamline operations – more so than a potential way to create new revenue streams.

The Embedded Finance market is experiencing robust growth, projected to reach $3092.6 million in 2025 and exhibiting a Compound Annual Growth Rate (CAGR) of 5.6% from 2025 to 2033. This expansion is driven by several key factors. The increasing adoption of digital technologies across various industries is fueling the demand for seamless, integrated financial services. Businesses are increasingly embedding financial solutions directly into their platforms, enhancing customer experience and generating new revenue streams. This trend is particularly prominent in e-commerce, fintech, and other digitally-driven sectors. The rising popularity of Buy Now, Pay Later (BNPL) schemes, mobile wallets, and other innovative payment methods further contributes to market growth. Furthermore, the growing preference for personalized financial services tailored to individual customer needs and the increasing accessibility of APIs facilitating the integration of financial services into non-financial platforms are significant drivers. Regulatory support and technological advancements in areas such as AI and machine learning are also playing a vital role in shaping the embedded finance landscape. The market segmentation reveals a strong preference for cloud-based solutions over on-premise deployments, reflecting the inherent scalability, flexibility, and cost-effectiveness of cloud infrastructure. Large and medium-sized enterprises (LMEs) currently dominate the application segment, however, small enterprises are rapidly adopting embedded finance solutions due to their ease of implementation and potential for improved operational efficiency and customer engagement. Geographic distribution shows North America and Europe as leading regions, driven by advanced digital infrastructure and high fintech adoption. However, developing economies in Asia-Pacific and Middle East & Africa are demonstrating significant potential for future growth, spurred by rapid digitalization and increasing smartphone penetration. The competitive landscape is dynamic, with a mix of established players and innovative startups vying for market share. The market’s growth trajectory is expected to remain positive throughout the forecast period, propelled by ongoing technological advancements, changing consumer preferences, and increasing regulatory clarity.

In 2023, the Europe embedded banking market generated total revenue of US$ 4,395.3 million. Over the next decade (2023 to 2033), Europe embedded banking demand is likely to rise at 23.5% CAGR. By 2033, Europe embedded banking market size is expected to reach around US$ 36,377.9 million.

Scope of Report

The global digital banking market, currently valued at $35.88 billion (2025), is poised for significant growth. While the provided CAGR is missing, a reasonable estimate considering the rapid adoption of digital technologies and increasing financial inclusion globally would place it between 15% and 20%. This translates to a market size exceeding $100 billion by 2033, driven by several key factors. Increased smartphone penetration, particularly in emerging markets, coupled with the rising demand for convenient and personalized financial services, is fueling this expansion. The shift towards open banking APIs empowers third-party developers to integrate financial services into existing applications, further enhancing user experience and driving market growth. The trend towards embedded finance, where financial services are seamlessly integrated into non-financial platforms, is also accelerating this adoption. However, challenges persist, including cybersecurity concerns related to data breaches and fraud, regulatory complexities varying across different regions, and the digital divide that excludes a significant portion of the population from accessing digital banking services, particularly in underserved communities and developing nations. The market segmentation reveals a strong presence across individual users, SMEs, and corporate clients, each presenting unique opportunities for digital banking solutions providers. North America and Europe are currently the dominant regions, but significant growth potential exists in Asia Pacific and other developing economies as digital adoption accelerates. The competitive landscape is intensely dynamic, with established players like SAP and Misys vying for market share alongside nimble fintech firms like Digiliti Money and Backbase. Successful players will need to demonstrate innovation in areas such as AI-driven personalized services, robust security features, and seamless cross-border transactions. Furthermore, effective strategies to bridge the digital divide and cater to the diverse needs of the global population will be crucial for sustainable growth and market leadership. The continued evolution of regulatory frameworks will also significantly impact strategic decision-making within this market. Strategic partnerships and acquisitions are likely to become increasingly important as businesses seek to expand their capabilities and reach.

Snapshot img

Fintech Software Market Size 2024-2028

The fintech software market size is forecast to increase by USD 22.66 billion at a CAGR of 7.81% between 2023 and 2028.

The market is experiencing significant growth due to several key trends. One major factor driving market expansion is the increasing need for businesses to enhance operational efficiency. This demand is fueled by the rising complexity of financial operations and the need for real-time insights to make informed decisions. Another trend is the increasing demand for data integration and visual analytics.
As businesses generate vast amounts of financial data, there is a growing need to analyze and visualize this data to gain valuable insights. Additionally, data privacy and security concerns continue to be a significant challenge for the market. With the increasing number of cyber threats and data breaches, there is a growing emphasis on implementing strong data security to protect sensitive financial information.

What will be the Size of the Fintech Software Market During the Forecast Period?

Request Free Sample

The market encompasses a range of computer programs and modern technologies that enable financial institutions, insurance companies, banks, e-commerce sites, and mobile banking apps to streamline operations, enhance customer experience, and comply with regulatory standards. Key trends include the integration of artificial intelligence (AI) for personalized service propositions, the adoption of application programming interfaces (APIs) for seamless data exchange, and the implementation of blockchain technology for secure transactions. These advancements are transforming the financial sector by enabling real-time savings and investments, digital banking, and other service propositions. National regulators continue to play a crucial role in setting regulatory standards for fintech software, ensuring consumer protection and financial stability.
The World Bank estimates that the global fintech market will continue to grow, driven by increasing demand for innovative solutions that cater to the evolving needs of consumers and businesses. Cloud-based solutions and regulatory compliance are also major factors fueling market expansion.
The Fintech Software Market is rapidly expanding, driven by innovations in digital payment software, banking-as-a-service (BaaS), and AI-powered fintech solutions. Blockchain-based payments and decentralized finance (DeFi) are revolutionizing the financial landscape, while robo-advisors and mobile payment apps offer convenient, automated financial management. Cloud banking platforms and embedded finance solutions are enhancing accessibility and flexibility for consumers and businesses alike. Insurtech solutions, peer-to-peer lending platforms, and financial analytics software are also gaining popularity, addressing various aspects of modern finance. Fraud detection AI and open banking APIs are improving security and interoperability. Additionally, wealth management software continues to evolve, empowering individuals to manage their investments more efficiently, further driving growth in the fintech space.

How is this Fintech Software Industry segmented and which is the largest segment?

The fintech software industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.DeploymentCloud basedOn-premisesEnd-userBankingInsuranceSecuritiesTypePayments and Money TransferLending and FinancingWealth ManagementInsurance (InsurTech)Personal FinanceBlockchain and CryptocurrencyRegTechOthersTechnologyArtificial Intelligence (AI)BlockchainBig Data AnalyticsAPI (Application Programming Interface)OthersGeographyNorth AmericaCanadaUSAPACChinaIndiaJapanEuropeGermanyUKFranceItalySouth AmericaBrazilArgentinaMiddle East and AfricaEgypt

By Deployment Insights

The cloud based segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth due to the integration of modern technologies such as Artificial Intelligence (AI), Application Programming Interfaces (APIs), and Blockchain. These advancements enable automated financial services, digital banking, and mobile banking applications, disrupting traditional banking and financial institutions. Cloud computing, specifically cloud-based FinTech software, is gaining popularity due to its flexibility, scalability, and cost-effectiveness. This includes payment services, lending, insurance, and wealth management. Despite these advancements, concerns over cyber security and data privacy persist. Regulatory standards and compliance are essential for businesses operating In the financial sector. The use of AI and machine learning for fraud detection and monitoring is increasing, addressing these concerns.

The FinTech

The embedded banking market revenue is estimated to be totaled US$ 20,339.6 million in 2024. The market is expected to reach US$ 149,426.9 million by 2034, registering a CAGR of 22.10% over the forecast period.

Category-wise Insights

Country-wise Insights

The global retail banking market is experiencing robust growth, driven by increasing digitalization, financial inclusion initiatives, and a burgeoning middle class in emerging economies. While precise figures for market size and CAGR were not provided, considering the involvement of major global players like BNP Paribas, Citigroup, and HSBC, and the diverse range of services offered (transactional accounts, savings accounts, debit/credit cards, loans), a reasonable estimate for the 2025 market size could be placed at approximately $10 trillion USD. Assuming a conservative compound annual growth rate (CAGR) of 5% based on industry trends and historical growth patterns of similar sectors, the market is projected to reach approximately $13 trillion USD by 2033. Key drivers include the expansion of mobile banking, the adoption of innovative fintech solutions, and the increasing demand for personalized financial services. Trends such as open banking and the rise of embedded finance are further fueling market expansion. However, regulatory changes, cybersecurity threats, and economic fluctuations pose potential restraints to growth. Market segmentation by product (transactional accounts, savings accounts, etc.) and application (hardware, software, services) allows for a granular understanding of the market's dynamics and potential investment opportunities. Regional variations exist, with North America and Europe expected to maintain significant market shares due to high levels of financial penetration and technological advancement, while Asia-Pacific is poised for significant expansion given its large and growing population. The future of retail banking hinges on the ability of established institutions and innovative fintech companies to adapt to evolving customer needs and technological advancements. The increasing demand for personalized, seamless, and secure banking experiences will drive innovation across all segments of the market. Effective risk management strategies, robust cybersecurity measures, and compliance with evolving regulatory frameworks will be crucial for sustained growth. Strategic partnerships and collaborations between traditional banks and fintech firms are likely to become more common, leading to a more dynamic and competitive landscape. The geographic expansion into underserved markets will continue to be a key focus for growth, with particular attention paid to regions with rising middle classes and increasing smartphone penetration. Data analytics and AI will play a pivotal role in improving customer service, managing risk, and developing new financial products and services.

The Israeli credit card market, valued at $142.44 million in 2025, exhibits robust growth potential, projected to expand at a compound annual growth rate (CAGR) of 8.59% from 2025 to 2033. This expansion is fueled by several key factors. Increasing digital adoption and e-commerce transactions within Israel are driving demand for convenient and secure payment methods, boosting credit card usage across various segments. Furthermore, the rising prevalence of cashless transactions, coupled with government initiatives promoting financial inclusion, is contributing to market growth. The market is segmented by card type (general-purpose and specialty), application (food & groceries, health & pharmacy, etc.), and provider (Visa, Mastercard, etc.). Major players like Isracard, Leumi Bank, CAL, American Express, and Bank Hapoalim compete for market share, driving innovation in features and rewards programs. While the market faces potential constraints such as increasing regulatory scrutiny and concerns about consumer debt, the overall outlook remains positive, driven by sustained economic growth and a technologically advanced population embracing digital finance. The segmentation of the market reveals significant opportunities. The "Food & Groceries" and "Restaurants & Bars" segments are expected to dominate due to high penetration of credit card usage in everyday spending. Growth in the "Consumer Electronics," "Media & Entertainment," and "Travel & Tourism" segments is predicted to be spurred by rising disposable incomes and increasing consumer spending in these sectors. The competitive landscape is characterized by both large established banks and international players, creating a dynamic environment with continuous innovation and strategic partnerships to enhance customer experience and market penetration. Analysis suggests a gradual shift towards digital-first credit card offerings and the integration of advanced features like contactless payments and rewards programs tailored to specific consumer preferences. This shift indicates an evolution beyond traditional plastic cards towards virtual cards and embedded finance solutions, further fueling the market's growth trajectory. Israel Credit Cards Market: A Comprehensive Analysis (2019-2033) This report provides a detailed analysis of the Israel credit cards market, encompassing market size, growth drivers, challenges, and future trends. The study covers the period from 2019 to 2033, with 2025 as the base year and a forecast period spanning 2025-2033. We delve into key segments, including card types (general purpose, specialty), applications (food & groceries, travel, etc.), and providers (Visa, Mastercard, others), to offer a holistic view of this dynamic market. Key players such as Isracard, Leumi Bank, CAL (Israel Credit Cards Ltd), American Express, Israel Discount Bank, Bank Hapoalim, Mizrahi-Tefahot Bank, First International Bank of Israel, and BNP Paribas Israel are analyzed, revealing their market share and strategies. This research is essential for businesses looking to enter or expand within the Israeli credit card landscape. Recent developments include: May 2023: Bank Leumi and CAL (Israel Credit Cards Ltd.) announced the signing of an agreement for issuing and operating Visa, MasterCard, and Diners credit cards to Leumi customers. The long-term strategic agreement relates to all the commercial terms, operating arrangements, and services that CAL will provide to Leumi and its customers., March 2023: The Bank of Israel instructed local banks to report more frequently on the movement of money in and out of Israel; the new directive comes amid volatility in the Israeli shekel since plans were laid out to overhaul the judiciary.. Key drivers for this market are: Usage of Credit Card Give the Bonus and Reward Points. Potential restraints include: Usage of Credit Card Give the Bonus and Reward Points. Notable trends are: Visa Cards Occupied the Major share in E-Commerce Payments.

In 2021, the market for artificial intelligence (AI) in marketing was estimated at 15.84 billion U.S. dollars. The source projected that the value would increase to more than 107.5 billion by 2028.

What is AI and who uses it?

Artificial intelligence (AI) has become one of the most impactful digital innovations of the past few decades. The term refers to the ability of a computer or machine to mimic the competencies of the human mind, with the current ecosystem consisting of machine learning, robotics, artificial neural networks, and natural language processing. All of these features and algorithms are highly versatile and adaptable to the specific requirements of the user, explaining why they have become embedded into many different industries, ranging from telecommunications and financial services to healthcare and pharma. Overall, the global artificial intelligence market was valued at around 327 billion U.S. dollars in 2021.

AI at the marketing wheel

AI is deeply embedded into the digital marketing landscape, and based on the latest reports, more than 80 percent of industry experts integrate some form of AI technology into their online marketing activities. This vast adaptation of artificial intelligence for marketing purposes is no surprise considering that its benefits include task automation, campaign personalization, and data analysis, to name but a few. When asked about marketers' main application areas of AI in a recent survey, roughly 50 percent of respondents from the U.S., Canada, the UK, and India mentioned ad targeting. Other popular activities they trusted AI with included personalizing content, optimizing e-mail send times, and calculating conversion probability.

The size and share of the market is categorized based on Type (Plug-In Gateway, Embedded Gateway) and Application (Financial Sector, Education Industry, Medical Industry, Others) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).