(11 May 2022 – Europe) Embedded finance activity is ramping up in 2022 with start-up Rupifi the latest example of rapidly increasing interest by investors after raising US$25 million in a Series A funding round.
Embedded finance refers to the seamless integration of financial services adopted by non-financial companies. B2B and B2C non-financial companies can offer their customers access to credit and other financial services through their platform.
The fintech enables its clients to integrate a payment gateway within their marketplace with omnichannel payment options. The global market for payment gateways is projected to grow at a compound annual growth rate (CAGR) of 16.4 percent to reach US$42.9 billion by 2026. The global B2B payments transactions market is estimated to be worth US$70 billion by 2030, growing at a CAGR of 10.7 percent in the next decade.
“Banks are increasingly embracing the potential embedded finance offers to their clients. New and innovative payment solutions are revolutionising the payments landscape for consumers and businesses alike. A trend to look out for in 2022 is the QR code going mainstream. Real-time payment rails are also expected to reach a global level” stated Financial Software and Systems Head of Payments Specialist Digital Banking, Benedict Xavier.
“Traditional card and cash payments are increasingly replaced by digital solutions offering convenience and simplicity for consumers around the world. Embedded finance is the natural evolution of payment innovation offering especially SMEs and smaller businesses a way to compete with their larger counterparts and big tech platforms.