Embedded finance has been rapidly evolving from non-digital to digital. If finance is the fuel for the economy, then digital embedded finance is the invisible aviation grade fuel powering jets of digital businesses. Supportive regulations, improving infrastructure, rise of digital channels and diversifying terminals have paved the way for its take-off.
This report comes in PPT.
Financial services industries especially banking and insurances used to be protected by high entry barriers (licence requirements). Regulators have seen the benefits of open finance especially banking (promoting competition, encouraging innovations and convenience to consumers), rolling out and refining regulations to promote growth of embedded finance.
Advancement in optical backbone networking and 5G/6G wireless communications have opened a new chapter, enabling embedded finance applications requiring ultra-fast speed.
Meanwhile, adoption of application programming interfaces (APIs) and cloud allow the real-time exchange among financial institutions and non-financial partners.
Digital commerce has shown double-digit growth over 2017-2022, while physical presence of businesses has been shrinking and transforming to be digitally assisted.
While consumers’ digital preference has been sticky post-pandemic, a growing number of businesses have been transforming digitally, increasing embedded finance demand.
Benefiting from increasing availability of budget smartphones, smartphones will remain the main device for embedded finance, targeting mass-market consumers and SMEs.
However, for tech-savvy/affluent individuals, and businesses serving them, smart wearables, connected appliances and connected automotives will be next frontiers of competition.
This is the aggregation of ATM, charge, credit, debit, e-purse and retail cards. Note that smart cards are not included in financial cards.
See All of Our DefinitionsIf you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!