From a product perspective, embedded payment market competition has been intensified with digital players, which are challenging the card operators. For deposit and lending, leading banks such as Goldman Sachs and CIMB have made their names in the Americas and Asia, respectively. Also, the platform model scaled up by Ant Group achieved phenomenal success (in lending, insurance and investment), which has been refined to be fully compliant with evolving regulations.
This report comes in PPT.
Four business models of embedded finance were identified, by comparing the expertise and operational expense between the business and the vendor.
1) Self-design and self-operate (leverage the partner’s licence only); 2) Self-design but operate by the vendor; 3) Design by the vendor but self-operate; and 4) Design and operate by the vendor.
The partnership model (exclusive/non-exclusive) and prioritisation of product roadmap have to be aligned with corporate strategic priorities and available funding.
Exclusive embedded finance partnerships are typically built upon equity investment or corporate lending.
Payment category has the widest usage and lower market entry barriers, so the embedded payment market is the most competitive but also its growth is outpacing others.
Non-interoperable payment rails have high costs and slow speed causing a pain point for cross-border payments that both digital giants and central banks are addressing.
Key leaders include digital challengers (Ant Group, Stripe, etc), card operators (Visa and Mastercard, China UnionPay, NPCI, etc) and banks (Goldman Sachs, HSBC, etc).
Their rise has been benefiting from earlier regulatory approval and continuous revision in open finance (open banking, etc) in the respective regions.
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!