Revenue Forecast

The revenue estimate for the base year 2023 is $32.00 billion, with a CAGR of 19.6% for the study period 2023-2029.

The Impact of the Top 3 Strategic Imperatives on the Global Embedded Payments Industry

Transformative Megatrends

Why

• As commerce shifts toward digital platforms, the need for embedded payments becomes greater. Integrating payment capability into apps or websites streamlines payment processing for consumers and businesses.
• Businesses can capitalize on new opportunities within the digital space by embedding payments as part of their user experience.

Frost Perspective

• Embedded payments have become a selling point for software-as-a-solution (SaaS) platforms and banks. As competition intensifies, increased collaboration is likely between banks, SaaS, and financial technology providers.
• The collaboration allows them to offer various financial services beyond payments and capture new revenue streams in their respective platform ecosystems.

Innovative Business Models

Why

• Embedded payment services help businesses reduce their operational burden and focus on improving customer experience.
• In addition, businesses have access to technology that helps them collect customer data, enabling them to better serve their customers.

Frost Perspective

• With embedded payments, businesses across industries beyond retail or commerce can offer customers payment capability, enhancing service offerings while adding new monetization options to their existing business model.
• Embedded payments will lead to more data-driven strategies that help businesses personalize products and gain a deep understanding of customer behavior on their services based on customer preferences.

Disruptive Technologies

Why

• Embedded payments work through native integration in non-financial service businesses. Key components include payment gateway, tokenization, payment methods integration, and data analytics.
• Examples of embedded payment use cases businesses can capitalize on are consumer credit, point-of-sale (POS) lending, and wealth management.

Frost Perspective

• Embedded payments help businesses adapt to changing macroeconomic conditions and optimize operational processes, reducing expenditures and improving revenue streams.
• Businesses that utilize embedded payments can adapt swiftly to evolving payment trends (e.g., pay later, one-click payment), ensuring resilience and the ability to capitalize on emerging opportunities, fostering sustained growth.

Scope of Analysis

• Embedded payments are where payment processing capabilities are integrated into non-financial service platforms. Users typically find embedded payments during the checkout process on a site with digital commerce abilities.
• The embedded payments industry comprises applications or software that enable businesses to accept digital payments (e.g., digital wallet, account-to-account payment) in their digital stores.
• Frost & Sullivan will focus on the global embedded payments market in this analysis, sharing insights on opportunities and highlighting new regulatory and technical capabilities driving the market.
• Our analysis includes trends impacting the industry, the current state and outlook on embedded payments, growth drivers and barriers, and notable opportunities.
• We segmented verticals based on 3 end-user industries that utilize embedded payments: retail; public sector; and travel. The study focuses on growth opportunities for embedded payments in these industries

Segmentation by Vertical

Global Embedded Payments Market

• Retail
  • Includes the following types:
  • Retailer stores
  • Marketplace
  • eCommerce platforms
  • Convenience stores
• Public Sector
  • Includes:
  • Government
  • Education
  • Utilities (gas, water, electricity)
  • Healthcare
• Travel
  • Includes:
  • Hotels
  • Tourism
  • Hospitality

Competitive Environment