What Is Driving the Rapid Growth of Financial Services Markets?
As the wider embedded finance market continues to mature, profitable segments are becoming increasingly popular, and relatively younger segments are becoming accepted in the mainstream.
Embedded finance can be split into several different areas, all of which use APIs to enable the integration of financial services into a third-party platform. In this report, five key segments will be explored, which are defined as follows:
- Embedded Payments: This is where payment processing functionalities are embedded into the checkout process, including one-click checkout buttons via digital wallets or account funding via Open Banking for investments.
- Embedded Lending: Here, lending products and/or services are offered through a non-financial institution at the point of sale. This is often referred to as ‘Digital Buy Now, Pay Later.’
- Embedded Investment: This occurs when platforms are enabled to integrate investment products and services into their existing product offering. This is often performed through ‘round-up’ options, where users are given the choice to automatically round up their purchases to build an investment portfolio.
- Embedded Insurance: This is when consumers are offered insurance bundles; bought as part of the purchase process of an item.
- Embedded Banking: This is where banking functions are integrated into the platforms of non-financial organisations. This includes services such as current accounts, savings accounts, and credit and debit cards. This can enable a wide range of non-banking players to offer some banking services via Banking-as-a-Service (BaaS).
About the Infographic
The infographic highlights the projected growth of five embedded financial services sectors - Banking, Payments, Insurance, Investment, and Lending - between 2026 and 2031.
Across every sector, the figures increase year-on-year; indicating sustained growth throughout the five-year period. Payments is consistently the largest segment; increasing from $66.4bn in 2026 to $284.2bn in 2031. Lending is the second-largest category; rising from $44.2bn to $158.6bn over the same period.
Banking also demonstrates strong and steady growth; increasing from $24bn in 2026 to $75.7bn in 2031. Meanwhile, Insurance grows from $19.1bn to $48bn; showing a more gradual upward trajectory.
Although Investment starts as the smallest segment at $8.8bn in 2026, it experiences substantial growth; reaching $50.5bn by 2031. Overall, the figures suggest that Payments and Lending are expected to remain the dominant areas of growth, with Payments showing particularly significant expansion after 2028. The total value across all five sectors rises from approximately $162.5bn in 2026 to $617bn in 2031; representing an increase of around $454.5bn.
The data therefore points towards considerable expansion across the financial services landscape, with Payments accounting for the largest share of the projected growth, while Investment shows the most notable relative increase from its smaller starting base.
Source: Embedded Finance Market: 2026-2031
Read the Press Release: Embedded Finance Revenue to Reach $617 Billion Globally by 2031, as B2B Revenue Surges 390%
Download the Whitepaper: Emerging Markets: The Next Opportunity for Embedded Finance
Latest research, whitepapers & press releases
-
ReportNovember 2026Telecoms & ConnectivityCPaaS Market: 2026-2031
Our CPaaS Market 2026-2031 research suite delivers insightful analysis of a market that will experience significant growth in the next five years. It provides an analysis of CPaaS vendors, key partnerships and client relationships, alongside intelligence on how to capitalise on changing market dynamics within the rapidly expanding CPaaS market.
VIEW -
ReportOctober 2026Fintech & PaymentsAccounts Payable Automation Market: 2026-2031
Our Accounts Payable (AP) Automation research suite provides an insightful analysis of this rapidly growing market; enabling stakeholders to understand future growth, key trends and the competitive environment.
VIEW -
ReportOctober 2026Fintech & PaymentsCrypto-gaming Market: 2026-2035
Our Crypto-gaming Market research suite provides an insightful analysis of this rapidly growing market; enabling stakeholders - from crypto-gaming and sportsbooks operators, prediction market platforms, business-to-business (B2B) gambling platforms and software providers, to crypto payment processors and regulators - to understand future growth, key trends, and the competitive environment.
VIEW -
ReportOctober 2026Telecoms & ConnectivityRetail Roaming Market: 2026-2031
Our Retail Roaming research suite for mobile network operators (MNOs) and mobile virtual network operators (MVNOs) provides detailed analysis and strategic recommendations for the next era of retail roaming.
VIEW -
ReportSeptember 2026Fintech & PaymentsEmbedded Finance Market: 2026-2031
Embedded finance is one of the fastest-growing markets in financial services, and is about to accelerate even further. Our Embedded Finance Market research provides detailed analysis of the key drivers behind this growth, and what these mean for stakeholders in this market.
VIEW -
ReportSeptember 2026Identity & SecurityApplication Security Market: 2026-2031
Our Application Security research suite provides detailed analysis of this emerging market; allowing application security providers to gain an understanding of key security trends and challenges, potential growth opportunities, and the competitive environment.
VIEW
-
WhitepaperOctober 2026Fintech & PaymentsAccounts Payable Automation ~ How Businesses Are Reducing Operational Costs
Our complimentary whitepaper, Accounts Payable Automation ~ How Businesses Are Reducing Operational Costs, analyses how AP automation is combatting costs by decreasing the need for manual processes, and provides strategic insight into a number of key trends in the AP automation space.
VIEW -
WhitepaperOctober 2026Fintech & PaymentsCompliance or Anonymity - The Crypto-gaming Operator’s Dilemma
Our complimentary whitepaper, Compliance or Anonymity - The Crypto-gaming Operator’s Dilemma, analyses the current regulatory landscape of the crypto-gaming market.
VIEW -
WhitepaperOctober 2026Telecoms & ConnectivityReimagining the Future of Retail Roaming – How Mobile Network Operators Must Adapt
Our complimentary whitepaper, Reimagining the Future of Retail Roaming – How Mobile Network Operators Must Adapt, explores the emerging opportunities for MNOs within retail roaming.
VIEW -
WhitepaperSeptember 2026Fintech & PaymentsEmerging Markets: The Next Opportunity for Embedded Finance
This free whitepaper examines how a combination of multiple factors is driving North America towards saturation for embedded finance.
VIEW -
WhitepaperSeptember 2026Emerging TechnologyVibe Coding: The Fastest-growing Threat to Application Security Today
Our complimentary whitepaper, Vibe Coding: The Fastest-growing Threat to Application Security Today, examines the state of the application security market; considering its impact on different verticals, and how it is being employed in these verticals to best combat malicious attackers and keep sensitive data safe.
VIEW -
WhitepaperSeptember 2026Fintech & PaymentsThe Fraud Frontier: Securing Banking in an AI-driven Era
Our complimentary whitepaper, The Fraud Frontier: Securing Banking in an AI-driven Era, examines the rapidly evolving state of the banking fraud prevention market.
VIEW
-
Fintech & Payments
26th NextGen Payments & RegTech Forum Arrives in Austin, Texas
October 2026 -
Fintech & Payments
Financial Institutions to Spend Over $66.2 Billion Globally on Fraud Prevention by 2031, Driven by Growing Demand for Cross-industry Fraud Intelligence
October 2026 -
Fintech & Payments
Omnichannel Payment Platforms to See a Dramatic 172% Growth in the Value of Transactions Processed Globally by 2031, as Merchants Capitalise on Payment Data
October 2026 -
Fintech & Payments
Accounts Payable Automation to Save Global Businesses 6.2 Billion Hours by 2031, Accelerated by Business System Integration
October 2026 -
Fintech & Payments
The 25th NextGen Payments & RegTech Forum Arrives in Athens, Greece
October 2026 -
Fintech & Payments
Crypto Gaming: Wagers to Reach $1.3 Trillion by 2035, as Crypto Rails Widen Global Access Despite Regulatory Challenges
October 2026