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