Value of embedded finance market will exceed nearly $140B in 2026

The market value includes insurance premiums, transaction revenue and licensing costs

embedded finance

Value of embedded finance market will exceed nearly $140B in 2026. Source: pexels.com

According to Juniper Research, the value of the embedded finance market will exceed $138 billion in 2026, up from $43 billion in 2021.

Embedded finance occurs when financial services are embedded within non-traditional financial services areas. For instance, banking services within a ridesharing app, or insurance services within an e-commerce checkout process.

The research found that this rise of over 215% will be driven by the growing availability of APIs from financial services vendors. It predicts that the easy integration of these APIs will lower the barriers to entry for financial services. It will also create a significant new revenue opportunity for providers of embedded finance.

Besides, revenue from buy now pay later services is expected to account for just over 50% of the embedded finance market in 2026.

Embedded lending at point of sale is a massive opportunity for leaders such as Klarna or Afterpay, but it is also an opportunity for banks. As open APIs proliferate, we expect banks to take a significant interest in the market; leveraging their existing user relationships and trusted brands to create compelling propositions
Nick Maynard, research author 

Along with that embedded insurance holds promise as a compelling way to boost the uptake of insurance for high-value products with e-commerce users.

We’ve reported that researchers developed fabric-friendly NFC sensors.

SEE ALSO: