The market for embedded finance is forecast to grow by 148% over the next five years, according to a recently published study.
The report from Juniper Research predicts that embedded finance revenue will exceed $228bn by 2028 thanks to advances in technology.
These developments are driving growth with specific use cases, according to the report.
These use cases include multi-rail payments and the aggregation of open banking APIs.
The report also highlights the growth prospects of the B2B market.
“Comprehensive product suites are being deployed due to the utilisation of newly developed technologies,” said research author Matt Purnell.
“This encourages businesses to adopt embedded finance offerings; for example, expansive cross-border capabilities utilising consolidated APIs or cloud accounting solutions using artificial intelligence.”
Embedded insurance is also expected to grow over the next five years, by 125% according to the report. This forecast is based on the prevalence of insurance offers on ecommerce platforms which use incentives to persuade customers to take out policies mid-checkout.
Growth in this market is set to be especially noticeable in the Asia-Pacific region thanks to the promotion of digital insurance by governments in the region, including Singapore and Malaysia.
Yet, the report also suggests that embedded insurance still remains an “uncommon offering” from many leading vendors “despite the significant growth potential”.