Summary

Report Description

According to PayNXT360’s Q4 2021 Embedded Finance Survey, Embedded Lending industry is expected to grow by 42.0% on annual basis to reach US$51,955.0 million in 2022.

The embedded lending industry is expected to grow steadily over the forecast period, recording a CAGR of 27.5% during 2022-2029. The embedded lending revenues in the region will increase from US$51,955.0 million in 2022 to reach US$199,924.6 million by 2029.

The Asia Pacific is home to the leading embedded lending providers in the world. The region has been and continues to be a hotspot for some of the most advanced FinTech markets globally. Furthermore, the growing number of technological advancements by FinTechs has made the Asia Pacific region a world leader in fintech innovations.

Countries such as Australia, India, China, Singapore, Indonesia, and Malaysia recorded strong demand growth for embedded lending options in the previous four to eight quarters. The presence of a large young population in the region is primarily driving the demand and market growth.

The Chinese embedded lending market has emerged as the most dominant market in Asia-Pacific. The massive growth in e-commerce sales and the continuously growing popularity of embedded lending options are crucial factors for attracting investments in the country. Additionally, with the growing efforts of the Chinese government to push the online credit market, colossal growth is anticipated in the country. PayNXT360 expects that the increased market attractiveness of online credit is likely to attract global companies in the Chinese embedded lending market in the next four to six quarters.

Market players are raising funds to expand their offerings for business lending segment in Europe

The business lending segment is offering a significant growth opportunity for embedded lending companies post-pandemic. Market participants are raising funds to improve their offering and expand their foothold in the business lending segment. This will help the lending companies and players in the ecosystem to capitalize on the overall prospects in this market. For instance,

• In December 2020, the United Kingdom-based embedding revenue-based finance platform provider Liberis raised £70 million, totaling the company’s valuation at £200 million. The fund was raised by the company’s old investors, including British Business Investments, Paragon Bank, BCI Europe, and a new investor Silicon Valley Bank.
• The newly raised funds will be utilized to launch new products and enter new markets with high growth opportunities.

With the companies developing new products is expected to result in innovations and improved features in the embedded lending platform.

Strategic partnership with global players to drive financial inclusion through embedded lending in the Africa and Middle East region

In the Africa and Middle East region, there is a large proportion of the young population who do not have access to financial services. Targeting such consumer demographics, firms are entering into strategic alliances with global players to drive financial inclusion in the region. For instance,

• In June 2021, Aafaq Islamic Finance entered into a strategic partnership with The Social Loan Company, a Singapore-based artificial intelligence-powered cutting-edge, big data-driven credit enablement platform company.
• Under the collaboration with The Social Loan Company, the firm is planning to launch embedded lending services, thereby offering credit to the underserved young population in the region.
• Notably, The Social Loan Company has had a phenomenal upward trajectory through its flagship embedded lending brand CASHe in India over the past four years.

PayNXT360 expects more such strategic alliances with global players in the embedded lending industry over the next four to eight quarters, which will subsequently drive the growth of the market in the Africa and Middle East region from the short to medium-term perspective.

Embedded lending to revolutionize the trade finance market in Latin America

The broken financing system in Latin America makes it nearly impossible for small exporters to compete with large exporters. Notably, banks often make small and medium enterprises wait for nearly three months before rejecting 50% of the trade finance applications. This is where embedded lending providers are coming to the forefront to support small and medium-sized exporters in Latin America. For instance,

• Marco is one of the tech-enabled platforms built for small and medium-sized exporters in the United States and Latin America. Notably, the embedded lending model used by Marco allows it to scale and support and SMEs in Latin America by giving large logistics providers the ability to finance exports on their own, underwritten by Marco.
• The firm aims to revolutionize the massive outdated trade finance market in Latin America and to help thousands of SMEs exporters to grow their businesses. Notably, the firm is addressing the US$350 billion financing gap in Latin America by developing its own proprietary and innovative risk model, which processes data in real-time for assessing risk and mitigating capital loss.

Since its launch in 2020, the firm has funded invoices in more than 20 countries. PayNXT360 expects the firm to raise capital rounds over the next four to eight quarters to further scale its operations in Latin America and other regions globally.

This report provides global insights into key trends and drivers along with a detailed data centric analysis of market opportunities in embedded lending industry at global and country level. Region and countries included in this report are:

1. Global
2. Argentina
3. Australia
4. Brazil
5. Canada
6. China
7. France
8. Germany
9. India
10. Indonesia
11. Italy
12. Kenya
13. Mexico
14. Nigeria
15. Philippines
16. Russia
17. South Africa
18. Thailand
19. United Arab Emirates
20. United Kingdom
21. United States

Scope

This report provides global insights, along with an in-depth data centric analysis of the Embedded Lending industry, covering 50+ KPIs for each region and country (370+ charts and 290+ tables in all). Below is a summary of key market segments:

Embedded Lending Market Size and Forecast

• Embedded Lending by Consumer Segments, 2020 – 2029
-- Business Lending
-- Retail Lending

• Embedded Lending by B2B Sectors, 2020 – 2029
-- Embedded Lending in Retail & Consumer Goods
-- Embedded Lending in IT & Software Services
-- Embedded Lending in Media, Entertainment & Leisure
-- Embedded Lending in Manufacturing & Distribution
-- Embedded Lending in Real Estate
-- Embedded Lending in Other

• Embedded Lending by B2C Sectors, 2020 – 2029
-- Embedded Lending in Retail Shopping
-- Embedded Lending in Home Improvement
-- Embedded Lending in Leisure & Entertainment
-- Embedded Lending in Healthcare and Wellness
-- Embedded Lending in Other

All the regional and country reports cover the following charts and tables:

Figure 1: PayNXT360’s Methodology Framework
Figure 2: Embedded Lending – Revenue (US$ Million), 2020-2029
Figure 3: Market Share Analysis by Consumer Segment (%), 2020-2029
Figure 4: B2B Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 5: B2C Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 6: Market Share Analysis by B2B Sectors (%), 2021 Vs. 2029
Figure 7: Retail & Consumer Goods Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 8: IT & Software Services – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 9: Transport & Logistics – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 10: Manufacturing & Distribution – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 11: Real Estate – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 12: Other – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 13: Market Share Analysis by B2C Sectors (%), 2021 Vs. 2029
Figure 14: Retail & Consumer Goods Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 15: Home Improvement – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 16: Leisure & Entertainment – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 17: Healthcare & Wellness – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 18: Other – Embedded Lending Industry Revenue (US$ Million), 2020-2029

Table 1: Embedded Lending – Revenue (US$ Million), 2020-2029
Table 2: B2B Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 3: B2C Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 4: Retail & Consumer Goods Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 5: IT & Software Services – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 6: Transport & Logistics – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 7: Manufacturing & Distribution – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 8: Real Estate – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 9: Other – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 10: Retail & Consumer Goods Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 11: Home Improvement – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 12: Leisure & Entertainment – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 13: Healthcare & Wellness – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 14: Other – Embedded Lending Industry Revenue (US$ Million), 2020-2029

Reasons to buy

• In-depth Understanding of Embedded Finance Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028).

• Insights into Opportunity by end-use sectors – Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.

• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate embedded finance strategy; assess market specific key trends, drivers, and risks in the industry.

• Get Sector Insights: Drawing from proprietary survey results, this report identifies opportunities across embedded lending, embedded insurance, embedded finance, and embedded wealth sectors.

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