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Embedded finance market to exceed $183bn globally by 2027, as businesses seek to diversify through the economic downturn

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A new study from Juniper Research has found that revenue from embedded financial services will exceed $183 billion globally in 2027; increasing from just under $65 billion in 2022.

Growing by 182% over the period, the report found that this expansion will be largely driven by non-financial businesses incorporating embedded finance options into their product offer.

These options will usually be introduced within the checkout process of an eCommerce transaction or incorporated seamlessly within a mobile app; resulting in enhanced financial options for the consumer and potential new revenue streams for vendors.

The report emphasised that it will be crucial for businesses to identify which financial services work best within their customer environment, whether B2B or consumer. Choosing products that align with target demographics and offer genuine consumer benefits will be the most successful.

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B2B embedded finance – the next big opportunity

The research identified that financial services are currently less well saturated within B2B markets; resulting in a significant untapped opportunity for B2B businesses to augment their revenue streams by incorporating embedded finance solutions.

Research author Dominique Tetnowski explained further: “Bringing the innovations seen within the consumer environment, such as Banking-as-a-Service, to a B2B environment is a powerful, underserved opportunity. Businesses wishing to offer embedded finance must choose the right offerings, that solve genuine challenges targeted specifically at their customers, or they will lose out to better-targeted competitors.”

Embedded investments – the fastest-growing segment

Additionally, the research found that embedded investments, where stock trading and investment products are integrated within other apps, will be the fastest-growing segment. It will increase by 421% over the next 5 years; accounting for almost $11 billion revenue globally by 2027. It recommends that brands serving high-net-worth individuals pursue embedded investment strategies, in order to broaden their appeal to premium users.

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