Europe Embedded Finance Market

Find out with FMI How Embedded Finance is Creating Game-changing Opportunities for Companies across the United Kingdom, France, Germany, Italy, and other European Countries!

Europe Embedded Finance Market by Type, Application & Region | Forecast 2023 to 2033

Europe Embedded Finance Market Outlook (2023 to 2033)

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.

By 2033, Europe embedded finance sales revenues will total around US$ 94,081.7 million. Europe embedded finance market is likely to hold 25% share of the global embedded finance market.

Key Market Shaping Factors

Rapid penetration of digitalization & high-speed internet will drive the Europe embedded finance industry through 2033
Escalating need for improving customer experience will elevate demand for embedded finance
Rising usage of fintech across European countries will boost revenues in the market
Growing popularity of concepts such as consumer lending, UPIs, SME lending, and insurance will create growth prospects for the market
Increasing adoption of cashless transactions will boost sales of embedded finance services.
Incorporating embedded finance solutions with latest technologies such as IoT, ML, and AI will create new opportunities
Growth in e-commerce will create lucrative opportunities for embedded finance service providers
Favorable government policies and initiatives to stimulate market development

Embedded finance is the integration of financial services into non-financial products/services. In other words, it involves embedding financial capabilities into products and services offered by technology companies, retailers, and other non-financial firms.

Embedded finance allows these companies to offer financial services to their customers without having to build out a full-fledged financial institution.

With the development of payment methods, rising e-commerce, better broadband connectivity, and the introduction of new technologies, the digital payment system is fast growing. To facilitate recurring billing, online systems such as PhonePe, Paytm, and Google Pay use payment gateway APIs, which are also used in embedded finance.

Successful payments made through embedded finance services have significantly increased during the last few years and the trend is likely to continue. This in turn will boost embedded finance sales revenue.

Successful embedded finance payments shall increase with time, notably in e-commerce. Decentralized procedures used in embedded finance allow customers to share their data with banks while maintaining the highest level of security. Users can access different payment options and manage their funds more effectively as a result.

Embedded finance offers various benefits to both financial institutions and users. For instance, it helps financial institutions to access a large pool of customers and build a more profitable business.

It allows businesses in MSME, B2B, and B2C segment to improve their customer lifetime value, vertically scale their product offering, and monetize their customer base.

Similarly, embedded finance allows users to access affordable financial services and receive customized offerings. It significantly improves customer experience.

Attribute	Key Insights
Estimated Europe Embedded Finance Market Size (2023)	US$ 24,230.9 million
Projected Europe Embedded Finance Market Value (2033)	US$ 94,081.7 million
Value-based CAGR (2023 to 2033)	14.5%
Embedded Payment Market Share (2033)	34.9%
Fintech Vendors Growth Rate (2023 to 2033)	17.1%
Transportation & Logistics Companies Market Share (2023)	22.3%

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2018 to 2022 Europe Embedded Finance Sales Outlook Compared to Demand Forecast from 2023 to 2033

Europe embedded finance market expanded at a CAGR of 10.8% from 2018 to 2022. Total market valuation in Europe reached US$ 21,511.2 million in 2022. Over the projection period between 2023 and 2033, embedded finance demand in Europe is set to rise at 14.5% CAGR.

Growing need for more efficient and cost-effective financial services will continue to provide impetus to the Europe market.

The demand for embedded finance in Europe is being driven by several factors. This includes the need for more efficient and cost-effective financial services and growing demand for digital services and products.

Increased competition among fintechs and the emergence of innovative technologies such as blockchain and artificial intelligence are also boosting the market.

Similarly, rising need for more secure and transparent financial transactions is driving the demand for embedded finance solutions.

The European Union's Payment Services Directive (PSD2) has created a more level playing field for fintech and banks, which is also positively impacting demand for embedded finance solutions.

The increasing demand for digital banking solutions is playing a key role in boosting the Europe embedded finance industry. Open banking is a technology-driven system that allows third-party providers to access and use customer financial data with their permission.

Payment services such as mobile payments, contactless payments, and digital wallets are becoming increasingly popular. Financial services such as investments, insurance, and loans are also gaining wider popularity. This is because they offer customers a convenient and secure way to access these services.

New products and services are being introduced by companies to increase their revenues and improve customer experience. For instance

In 2021, MasterCard announced its new Embedded Payments platform, designed to enable businesses to embed payment processing capabilities into their applications and services.
In 2020, BBVA announced the launch of its first embedded finance product, an API-based platform that enables businesses to embed banking services into their own applications.

These key developments will have a positive impact on the overall growth of Europe embedded finance industry during the projection period.

Country-wise Insights

Why is the United Kingdom Leading Europe Embedded Finance Market?

Strong Presence of Digital Banking Solutions Making the United Kingdom a Leading Embedded Finance Market

The United Kingdom is leading the Europe embedded finance market for several reasons. Firstly, the country has a long history of innovation in the fintech sector. This is due to a supportive regulatory environment that encourages experimentation and innovation. As a result, the United Kingdom has become a hub for fintech companies.

The United Kingdom is home to various world’s leading fintech companies, such as Revolut and Monzo. Secondly, the country houses a large number of world-leading banks, such as HSBC, Barclays, and Lloyds Banking Group, all of which are actively exploring and investing in embedded finance solutions.

Thirdly, the United Kingdom is home to several innovative startups such as TrueLayer, which are leading the way in developing embedded finance solutions.

Finally, various leading universities and research institutions are actively researching and developing new technologies that can be used to power embedded finance solutions.

Thanks to these aforementioned factors, the United Kingdom will hold a prominent share of 23.6% in Europe market by 2033

What are the Opportunities for Embedded Finance Market in Germany?

Growing Popularity of Open Banking & InsurTech to Create Prospects for Germany Embedded Finance Market

Embedded finance in Germany offers a great opportunity due to open banking, digital payments, financial inclusion, the regulatory framework, and insurance technology.

Open banking allows financial institutions to access customer data from other banks, allowing them to offer better financial services. Digital payments are on the rise, creating an opportunity for embedded finance providers to offer innovative payment solutions.

Financial inclusion can help bring unbanked people into the financial system and offer them access to financial services. The regulatory framework provides a favorable environment for companies to enter the market and offer innovative solutions.

InsurTech can help make insurance products more accessible and affordable to customers. Due to these reasons, Germany is estimated to emerge as a lucrative market for embedded finance solution providers. As per FMI Germany market will thrive at 16.8% CAGR over the forecast period.

Sudip Saha

Principal Consultant

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Category-wise Insights

What Makes Embedded Payment a Leading Segment in the Europe Market?

Better Features Offered by Embedded Payment Solutions Making Them Attractive to Consumers

As per Future Market Insights (FMI), embedded payment segment will continue to dominate the Europe market. This is due to various advantages of using embedded payments.

Embedded payment solutions offer a wide range of benefits to users, such as convenience, security, and cost savings. This makes them attractive to consumers, and therefore they hold a prominent share for the embedded finance market.

Embedded payment solutions also offer merchants and businesses the ability to integrate payment processing into their own systems, allowing for a seamless and secure customer experience.

Embedded payment solutions are often more secure than traditional payment methods, as they are less vulnerable to fraud and other security threats.

Finally, embedded payments are often cheaper for merchants, as they do not require additional hardware or software investments. They enable customers to skip routine checkout processes and simply pay with a single click. Therefore, the target segment will hold a market share of 34.9% in the type category by 2033.

Which is the Top Revenue-generating Application for Embedded Finance?

Fintech Services to Remain Key Application Area of Embedded Finance

Based on application, fintech vendors segment will expand at a prolific CAGR of 17.1% through 2033 owing to the increasing demand for digital financial services and growing adoption of digital banking and payments.

Similarly, growth is driven by the increasing need for improved customer experience and convenience and rising popularity of mobile banking. The emergence of new technologies such as blockchain, artificial intelligence, and machine learning will also impact financial technology vendors segment.

The emergence of new payment methods such as contactless payments and the increasing demand for digital banking services will further boost fintech vendors segment.

Competitive Landscape

Banks and financial institutions are the most dominant players in the European finance market, providing a wide range of services such as loans, deposits, payments, international money transfers, and investment services.

Insurance companies provide services such as life insurance, health insurance, property and casualty insurance, and annuities. Investment firms and venture capitalists provide funding for start-ups and other businesses in exchange for equity.

Private equity firms invest in companies and provide capital for expansion and restructuring. Asset managers provide portfolio management, investment advice, and trading services. Leading players in this sector include Blackrock, Fidelity Investments, and Vanguard.

Recent developments

In 2023, American Express announced the launch of its Embedded Payments platform, which enables businesses to embed payment processing capabilities into their applications and services.
In 2022, Visa announced the launch of its Embedded Payments platform, which enables businesses to embed payment processing capabilities into their applications and services.

Europe Embedded Finance Market Report Scope

Attribute	Details
Estimated Market Value (2023)	US$ 24,230.9 million
Projected Market Value (2033)	US$ 94,081.7 million
Anticipated Growth Rate (2023 to 2033)	14.5% CAGR
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	US$ million for value
Key Countries Covered	Germany Italy France United Kingdom Spain BENELUX Nordics Rest of Europe
Key Market Segments Covered	Type Application Country
Key Companies Profiled	Stripe Technology Europe Finix Liberis Alviere Railsbank Technology Striga Technology OÜ Plaid Q2 Software, Inc Modulr Flywire Marqeta Solaris OpenPayd Tink

Key Segments of Europe Embedded Finance Market Research

By Type:

Embedded Banking
Embedded Insurance
Embedded Investments
Embedded Lending
Embedded Payment

By Application:

Fintech Vendors
Travel & Hospitality Businesses
Real Estates
Transportation & Logistics Companies
Media Companies
Others

By Country:

United Kingdom
Germany
France
Italy
Spain
Norway
Denmark
Sweden
Belgium
Netherlands
Rest of Europe

Frequently Asked Questions

What is the current Europe embedded finance market value?

In 2023, the market value of embedded finance in Europe will reach US$ 24,230.9 million.

At what CAGR will embedded finance demand rise across Europe through 2033?

Europe embedded finance demand is forecast to increase at 14.5% CAGR through 2033.

How big will be the Europe Finance industry by 2033?

The Europe embedded finance industry will reach a valuation of US$ 94,081.7 million by 2033.

Which country will witness significant growth during the projection period?

Germany market is likely to witness an impressive growth rate of 16.8% CAGR through 2033.

What is the demand outlook for France embedded finance industry?

France market will thrive at a healthy CAGR of 14.4% between 2023 and 2033.

Table of Content

1. Executive Summary | Europe Embedded Finance Market

1.1. Market Outlook

1.2. Demand Side Trends

1.3. Supply Side Trends

1.4. Analysis and Recommendations

2. Market Overview

2.1. Market Coverage / Taxonomy

2.2. Market Definition / Scope / Limitations

3. Key Market Trends

3.1. Key Trends Impacting the Market

3.2. Product Innovation / Development Trends

4. Pricing Analysis

4.1. Pricing Analysis, By Solution

4.1.1. Subscription Pricing Model

4.1.2. Perpetual Licensing

4.2. Average Pricing Analysis Benchmark

5. Market Demand (Value in US$ million) Analysis 2018 to 2022 and Forecast, 2023 to 2033

5.1. Historical Market Value (US$ million) Analysis, 2018 to 2022

5.2. Current and Future Market Value (US$ million) Projections, 2023 to 2033

5.2.1. Y-o-Y Growth Trend Analysis

5.2.2. Absolute $ Opportunity Analysis

6. Market Background

6.1. Macro-Economic Factors

6.2. Forecast Factors - Relevance & Impact

6.3. Value Chain

6.4. COVID-19 Crisis – Impact Assessment

6.4.1. Current Statistics

6.4.2. Short-Mid-Long Term Outlook

6.4.3. Likely Rebound

6.5. Market Dynamics

6.5.1. Drivers

6.5.2. Restraints

6.5.3. Opportunities

7. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Type

7.1. Introduction / Key Findings

7.2. Historical Market Size (US$ million) Analysis By Type, 2018 to 2022

7.3. Current and Future Market Size (US$ million) Analysis and Forecast By Type, 2023 to 2033

7.3.1. Embedded Banking

7.3.2. Embedded Insurance

7.3.3. Embedded Investments

7.3.4. Embedded Lending

7.3.5. Embedded Payment

7.4. Market Attractiveness Analysis By Type

8. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Application

8.1. Introduction / Key Findings

8.2. Historical Market Size (US$ million) Analysis By Application, 2018 to 2022

8.3. Current and Future Market Size (US$ million) Analysis and Forecast By Application, 2023 to 2033

8.3.1. Fintech Vendors

8.3.2. Travel & Hospitality Businesses

8.3.3. Real Estates

8.3.4. Transportation & Logistics Companies

8.3.5. Media Companies

8.3.6. Other

8.4. Market Attractiveness Analysis By Application

9. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Country

9.1. Introduction / Key Findings

9.2. Historical Market Size (US$ million) Analysis By Country, 2018 to 2022

9.3. Current and Future Market Size (US$ million) Analysis and Forecast By Country, 2023 to 2033

9.3.1. United Kingdom

9.3.2. Germany

9.3.3. France

9.3.4. Italy

9.3.5. Spain

9.3.6. Norway

9.3.7. Denmark

9.3.8. Sweden

9.3.9. Belgium

9.3.10. Netherlands

9.3.11. Rest of Europe

9.4. Market Attractiveness Analysis By Country

10. Key Countries Analysis- Europe Embedded Finance Market

10.1. United Kingdom Embedded Finance Market Analysis

10.1.1. By Type

10.1.2. By Application

10.2. Germany Embedded Finance Market Analysis

10.2.1. By Type

10.2.2. By Application

10.3. France Embedded Finance Market Analysis

10.3.1. By Type

10.3.2. By Application

10.4. Italy Embedded Finance Market Analysis

10.4.1. By Type

10.4.2. By Application

10.5. Spain Embedded Finance Market Analysis

10.5.1. By Type

10.5.2. By Application

10.6. Norway Embedded Finance Market Analysis

10.6.1. By Type

10.6.2. By Application

10.7. Denmark Embedded Finance Market Analysis

10.7.1. By Type

10.7.2. By Application

10.8. Sweden Embedded Finance Market Analysis

10.8.1. By Type

10.8.2. By Application

10.9. Belgium Embedded Finance Market Analysis

10.9.1. By Type

10.9.2. By Application

10.10. Netherlands Embedded Finance Market Analysis

10.10.1. By Type

10.10.2. By Application

10.11. Rest of Europe Embedded Finance Market Analysis

10.11.1. By Type

10.11.2. By Application

11. Market Structure Analysis

11.1. Market Analysis by Tier of Companies

11.2. Market Share Analysis of Top Players

11.3. Market Presence Analysis

12. Competition Analysis

12.1. Competition Dashboard

12.2. Competition Benchmarking

12.3. Competition Deep Dive

12.3.1. Stripe Technology Europe

12.3.1.1. Business Overview

12.3.1.2. Solution Portfolio

12.3.1.3. Profitability by Market Segments (Type/Application/Region)

12.3.1.4. Key Strategy & Developments

12.3.2. Finix

12.3.2.1. Business Overview

12.3.2.2. Solution Portfolio

12.3.2.3. Profitability by Market Segments (Type/Application/Region)

12.3.2.4. Key Strategy & Developments

12.3.3. Liberis

12.3.3.1. Business Overview

12.3.3.2. Solution Portfolio

12.3.3.3. Profitability by Market Segments (Type/Application/Region)

12.3.3.4. Key Strategy & Developments

12.3.4. Alviere

12.3.4.1. Business Overview

12.3.4.2. Solution Portfolio

12.3.4.3. Profitability by Market Segments (Type/Application/Region)

12.3.4.4. Key Strategy & Developments

12.3.5. Railsbank Technology

12.3.5.1. Business Overview

12.3.5.2. Solution Portfolio

12.3.5.3. Profitability by Market Segments (Type/Application/Region)

12.3.5.4. Key Strategy & Developments

12.3.6. Striga Technology OÜ

12.3.6.1. Business Overview

12.3.6.2. Solution Portfolio

12.3.6.3. Profitability by Market Segments (Type/Application/Region)

12.3.6.4. Key Strategy & Developments

12.3.7. Plaid

12.3.7.1. Business Overview

12.3.7.2. Solution Portfolio

12.3.7.3. Profitability by Market Segments (Type/Application/Region)

12.3.7.4. Key Strategy & Developments

12.3.8. Q2 Software, Inc

12.3.8.1. Business Overview

12.3.8.2. Solution Portfolio

12.3.8.3. Profitability by Market Segments (Type/Application/Region)

12.3.8.4. Key Strategy & Developments

12.3.9. Modulr

12.3.9.1. Business Overview

12.3.9.2. Solution Portfolio

12.3.9.3. Profitability by Market Segments (Type/Application/Region)

12.3.9.4. Key Strategy & Developments

12.3.10. Flywire

12.3.10.1. Business Overview

12.3.10.2. Solution Portfolio

12.3.10.3. Profitability by Market Segments (Type/Application/Region)

12.3.10.4. Key Strategy & Developments

12.3.11. Marqeta

12.3.11.1. Business Overview

12.3.11.2. Solution Portfolio

12.3.11.3. Profitability by Market Segments (Type/Application/Region)

12.3.11.4. Key Strategy & Developments

12.3.12. Solaris

12.3.12.1. Business Overview

12.3.12.2. Solution Portfolio

12.3.12.3. Profitability by Market Segments (Type/Application/Region)

12.3.12.4. Key Strategy & Developments

12.3.13. OpenPayd

12.3.13.1. Business Overview

12.3.13.2. Solution Portfolio

12.3.13.3. Profitability by Market Segments (Type/Application/Region)

12.3.13.4. Key Strategy & Developments

12.3.14. Tink

12.3.14.1. Business Overview

12.3.14.2. Solution Portfolio

12.3.14.3. Profitability by Market Segments (Type/Application/Region)

12.3.14.4. Key Strategy & Developments

13. Assumptions and Acronyms Used

14. Research Methodology

List of Tables

Table 1: Market Value (US$ million) Analysis (2018 to 2022) By Type

Table 2: Market Value (US$ million) Forecast (2023 to 2033) By Type

Table 4: Market Value (US$ million) Analysis (2018 to 2022) By Application

Table 5: Market Value (US$ million) Forecast (2023 to 2033) By Application

Table 6: Market Value (US$ million) Analysis (2018 to 2022) By Country

Table 7: Market Value (US$ million) Forecast (2023 to 2033) By Country

Sudip Saha

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

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List of Charts

Figure 1: Market Size (US$ million) and Y-o-Y Growth Rate from 2023 to 2033

Figure 2: Market Size and Y-o-Y Growth Rate from 2023 to 2033

Figure 3: Market Value (US$ million), 2018 to 2022

Figure 4: Market Value (US$ million), 2023 to 2033

Figure 5: Market Value Share Analysis (2023 to 2033) By Type

Figure 6: Market Value Y-o-Y Growth Trend Analysis (2018 to 2033) By Type

Figure 7: Market Attractiveness By Type

Figure 8: Market Value Share Analysis (2023 to 2033) By Application

Figure 9: Market Value Y-o-Y Growth Trend Analysis (2018 to 2033) By Application

Figure 10: Market Attractiveness By Application

Figure 11: Market Value Share Analysis (2023 to 2033) By Country

Figure 12: Market Value Y-o-Y Growth Trend Analysis (2018 to 2033) By Country

Figure 13: Market Attractiveness By Country

Figure 14: Market Value Share Analysis (2023 to 2033) by Country

Figure 15: Market Value Y-o-Y Growth Trend Analysis (2018 to 2033) by Country

Figure 16: Market Attractiveness by Country

Figure 17: United Kingdom Market Absolute $ Opportunity (US$ million), 2018 to 2033

Figure 18: Germany Market Absolute $ Opportunity (US$ million), 2018 to 2033

Figure 19: France Market Absolute $ Opportunity (US$ million), 2018 to 2033

Figure 20: Italy Market Absolute $ Opportunity (US$ million), 2018 to 2033

Figure 21: Spain Market Absolute $ Opportunity (US$ million), 2018 to 2033

Figure 22: Norway Market Absolute $ Opportunity (US$ million), 2018 to 2033

Figure 23: Denmark Market Absolute $ Opportunity (US$ million), 2018 to 2033

Figure 24: Sweden Market Absolute $ Opportunity (US$ million), 2018 to 2033

Figure 25: Belgium Market Absolute $ Opportunity (US$ million), 2018 to 2033

Figure 26: Netherlands Market Absolute $ Opportunity (US$ million), 2018 to 2033

Figure 27: Rest of Europe Market Absolute $ Opportunity (US$ million), 2018 to 2033