Global Embedded Payments Set To Surge 134% By 2028
Up From $1.1 Trillion In 2024
According to the latest report released by Juniper Research, a leading expert in fintech and payment markets, the global transaction value from embedded payments is projected to skyrocket by 134% by the year 2028, up from $1.1 trillion in 2024.
The report, titled Global Embedded Finance Market 2024-2028, underscores the rapid integration of embedded payments into digital ecosystems, mainly through in-app and online platform-integrated transactions.
According to the findings, this surge is driven by the rising adoption of Account-to-Account (A2A) payments, which have gained significant traction due to streamlined one-click checkout experiences and lower costs than traditional card payments.
The research author, Matthew Purnell, highlighted the pivotal role of A2A payments in transforming the payment landscape: “Transparent instant payments embedded in checkouts reduce cart abandonment rates, enhancing efficiency and consumer satisfaction. This synergy between A2A and embedded payments is becoming indispensable for vendors in the evolving fintech arena.”
The report also illuminates the evolving competitive dynamics within the embedded finance market.
While fintech companies have historically dominated this space, traditional banks are increasingly entering the fray. Institutions like Goldman Sachs are forging strategic partnerships to offer embedded payroll services and integrated payments within software products, enhancing consumer trust in embedded solutions.
“As banks leverage their trusted status to provide embedded payments, fintechs face mounting pressure to differentiate themselves,” noted Purnell.
“This includes expanding service offerings such as A2A payments, bolstering B2B capabilities, and harnessing multi-rail payment solutions.”
The Global Embedded Finance Market 2024-2028 report offers insights into market trends, competitive benchmarks, and future opportunities across 60 countries and comprises an analysis of over 70,200 data points.
Embedded payments refer to seamless transactions integrated into digital experiences. Businesses streamline user journeys by embedding payment functionalities directly into platforms, apps, or devices, enhancing convenience and reducing transaction friction.
This approach fosters a unified customer experience, enabling instant purchases or subscriptions without redirections or multiple logins. This trend empowers businesses to scale internationally, leveraging localised payment methods and currencies.
From e-commerce to subscription services and IoT devices, embedded payments redefine how consumers interact with products and services globally, driving efficiency and unlocking new growth opportunities in the digital economy.
Featured image: Traditional banks are increasingly entering the embedded payments fray. Credit: Rupixen
