According to PayNXT360, Embedded Finance industry in the region is expected to grow by 32.1% on annual basis to reach US$42,242.4 million in 2023.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 24.6% during 2024-2029. The embedded finance revenues in the region will increase from US$42,242.4 million in 2024 to reach US$126,994.4 million by 2029.

The European embedded finance industry is poised for accelerated growth in 2024. New and innovative startups are entering the market to cater to the growing funding demand of SMEs. These firms are also raising funding rounds and entering into strategic collaborations to accelerate growth and expand their regional footprint. Global firms are also entering the regional market to tap into the high-growth market over the next few years.

In Europe, embedded insurance is creating a significant impact in the automotive sector. There is a rising trend of automakers that are blending insurance policies with the purchase or lease of vehicles. Ford and Jaguar Land Rover are among the big giants that have embraced this, recognizing its influence in enhancing customer satisfaction. This trend is projected to continue further over the medium term across the region.

Firms are entering into strategic collaborations to provide financing services to SMEs in Europe

According to the Bank of England, small and medium-sized enterprises (SMEs) are facing an estimated funding gap of ?22 billion. To address this, embedded finance providers are entering into strategic partnerships in the United Kingdom.
• Liberis, for instance, partnered with e-commerce software provider Shop Circle Capital in April 2024. The partnership seeks to deliver financing solutions to merchants in the United Kingdom. Alongside the United Kingdom, the service has been launched in the United States too, with plans to expand in more regions going forward in 2024.
• Froda, which has experienced strong growth and increased focus on its embedded finance offerings, also collaborated with Visma Finance in April 2024. Under the partnership, the two firms have launched a new product invoice loan. Unlike traditional business loans, the loan product is designed to automatically pay the invoice and not the customer.
These strategic collaborations and innovative product launches are expected to further drive the competitive landscape in the fast-growing European embedded finance industry over the medium term.

European embedded finance firms raising capital to expand their regional footprint in 2024

The embedded finance industry is poised for accelerated growth over the medium term in Europe. To tap into the high-growth sector, firms are planning to expand their regional footprint and subsequently, raise venture capital and private equity funding in 2024.
• Flowpay, a Czech-based embedded finance provider, announced that the firm had raised ?2.1 million in its seed funding round in March 2024. The capital round was backed by investors including Techstars, Soulmates Ventures, and DEPO Ventures, among others. The firm is planning to deploy the capital towards expansion in other European markets, while also utilizing the funding for enhancing technological capabilities and offering a range of services to SMEs.
• Finmid, the Berlin-based firm, announced that the firm had raised ?35 million as it emerged from stealth in April 2024. The capital round was led by Blossom Capital and also included participation from Earlybird VC. Finmid plans to use the capital to broaden its reach into key European markets, enhance its product offerings, and localize the services to meet regional needs. In partnership with Wolt and Safi, the firm provides tailored financing solutions to various businesses, including restaurants and retailers
Alongside regional players, global firms are also eyeing the European embedded finance market. VoPay, for instance, has entered into the United Kingdom amid high growth prospects over the medium term. PayNXT360 expects the trend to continue further across the region in 2024.

European automakers are leveraging embedded insurance to create more value for their customers

In Europe, embedded insurance is creating a significant impact in the automotive sector. There is a rising trend of automakers that are blending insurance policies with the purchase or lease of vehicles. Ford and Jaguar Land Rover are among the big giants that have embraced this, recognizing its influence in enhancing customer satisfaction. Automakers, especially EV providers, are focusing on a digital approach to reach and engage with their customers in the region.
• Fisker, for instance, is offering customers in Austria, Belgium, Denmark, France, Germany, and the Netherlands the option to customize their insurance coverage digitally. Customers can access and sign up for insurance plans that match their specific car models and expected yearly mileage while placing an order.
Niu, another EV provider, launched a pan-European embedded insurance program in 2023. This solution is designed to help its customers quickly find suitable insurance for their electric mopeds. The insurance program, notably, is omnichannel enabling customers to access the services in their desired way.
This report provides a detailed data-centric analysis of the embedded finance industry, covering lending, insurance, payment, wealth and asset based finance sectors market opportunities and risks across a range of different sectors. With over 75+ KPIs at the country level, this report provides a comprehensive understanding of embedded finance market dynamics, market size and forecast.

It breaks down market opportunities by type of business model, consumer segment, and distribution models. In addition, it also provides detailed information across a range of different segment in each sector of embedded finance. KPI revenue help in getting an in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

This title from PayNXT360 is a bundled offering, combining the following 17 reports, covering 1200+ tables and 1500+ figures:

1. Europe Embedded Finance Business and Investment Opportunities
2. Austria Embedded Finance Business and Investment Opportunities
3. Belgium Embedded Finance Business and Investment Opportunities
4. Denmark Embedded Finance Business and Investment Opportunities
5. Finland Embedded Finance Business and Investment Opportunities
6. France Embedded Finance Business and Investment Opportunities
7. Germany Embedded Finance Business and Investment Opportunities
8. Greece Embedded Finance Business and Investment Opportunities
9. Ireland Embedded Finance Business and Investment Opportunities
10. Israel Embedded Finance Business and Investment Opportunities
11. Italy Embedded Finance Business and Investment Opportunities
12. Netherlands Embedded Finance Business and Investment Opportunities
13. Poland Embedded Finance Business and Investment Opportunities
14. Russia Embedded Finance Business and Investment Opportunities
15. Spain Embedded Finance Business and Investment Opportunities
16. Switzerland Embedded Finance Business and Investment Opportunities
17. United Kingdom Embedded Finance Business and Investment Opportunities