DUBLIN–(BUSINESS WIRE)–The “Asia Pacific Embedded Finance Market Size & Forecast by Value and Volume Across 100+ KPIs by Business Models, Distribution Models, End-Use Sectors, and Key Verticals (Payments, Lending, Insurance, Banking, Wealth) – Databook Q4 2025 Update” report has been added to ResearchAndMarkets.com’s offering.
The embedded finance market in Asia Pacific is expected to grow by 9.1% on an annual basis to reach US$288.8 billion by 2025. The embedded finance market in the region has experienced robust growth during 2021-2025, achieving a CAGR of 12.7%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 6.6% from 2026 to 2030. By the end of 2030, the embedded finance market is projected to expand from its 2024 value of US$264.7 billion to approximately US$373.2 billion.
This report provides a detailed data-centric analysis of the embedded finance industry in Asia Pacific, covering five major verticals: payments, lending, insurance, banking, and investments & wealth management. It covers more than 100 KPIs, including transaction value, transaction volume, average transaction size, revenue indicators, and financial performance measures.
Embedded finance in Asia Pacific is moving from early stage experimentation to scaled implementation across both consumer and SME use cases. Regional dynamics such as mobile first ecosystems, digital infrastructure investments, fragmented financial access, and progressive regulation are uniquely shaping the embedded finance landscape. Over the next 2-4 years, the region is expected to witness deeper integration of financial services into both platforms based commerce and enterprise workflows. The trend will intensify across sectors, with data driven and regulatory compliant embedded models forming the next phase of growth.
Competitive intensity is rising as fintechs, incumbents, and platforms compete for embedded access
- The Asia Pacific embedded finance landscape is becoming increasingly competitive, with both financial and non-financial players seeking to control distribution and customer ownership. Fintechs are partnering with digital platforms to integrate lending, insurance, and payment solutions, while incumbent banks are launching embedded offerings to retain relevance. Meanwhile, regional super apps like Grab and Gojek continue to scale financial offerings within their ecosystems.
- Competitive intensity varies by country. In mature markets like Australia and Singapore, regulatory clarity and consumer data access are enabling broader participation, while in Indonesia, Vietnam, and the Philippines, platform led models dominate due to underbanked demographics. Embedded finance is also extending beyond consumer payments and lending, with competition intensifying in SME finance and insurance distribution especially in India, Indonesia, and Vietnam.
Key players span fintechs, banks, and tech platforms each leveraging different moats
- Fintechs like Pine Labs (India), Akulaku (Indonesia), Kredivo (Indonesia), and Atome (Southeast Asia) are embedding credit and checkout financing into retail and online journeys. Airwallex (Australia, Singapore) is building cross border payment and embedded finance capabilities for global businesses.
- Several banks are embedding finance through partnerships or APIs. For example, Standard Chartered’s nexus is powering white labeled banking for ecosystem partners in Indonesia and other Southeast Asian markets. In Japan, Mitsubishi UFJ Financial Group (MUFG) is exploring embedded finance models through fintech subsidiaries.
- Super apps like Grab and Gojek remain dominant across multiple financial service lines. In China, Tencent and Alibaba’s embedded finance models (via WeChat Pay and Alipay) are well established, though regulatory tightening has slowed expansion. E commerce players such as Lazada and Shopee are also embedding BNPL and wallet features across Southeast Asia.
- Recent entrants such as B2B focused platforms (e.g., Aspire in Singapore and Validus in Vietnam) are targeting SME embedded finance via ERP and supply chain integrations. Cross border Insurtech’s like Igloo and Qoala are scaling embedded insurance distribution through travel, mobility, and e commerce platforms.
Embedded finance is expanding rapidly across digital commerce and lifestyle platforms
- Embedded finance in Asia Pacific is increasingly being integrated into consumer facing platforms such as ride hailing, e commerce, and lifestyle super apps. Companies like Grab (Southeast Asia), Gojek (Indonesia), and Kakao (South Korea) now offer payments, insurance, lending, and investment products as part of their core apps. In India, Flipkart and PhonePe are embedding micro insurance, credit lines, and UPI based services within their respective ecosystems.
- High mobile penetration, app first user behavior, and a preference for platform based consumption models have created a conducive environment for embedded finance. The success of early models, such as Grab Financial Group and Kakao Pay, has encouraged other players to enter the space. Government support for digital financial services such as India’s UPI, Indonesia’s BI FAST, and South Korea’s MyData initiative has further accelerated adoption.
- This trend is expected to intensify, with non-financial platforms becoming more central to financial access in emerging and developed APAC economies. Traditional banks and insurers will likely collaborate more with platforms to remain embedded in the digital consumption journey. Market concentration may increase in markets where super apps dominate access to digital finance.
B2B embedded finance is scaling in SME lending and supply chain finance
- There is a growing focus on embedded finance for B2B use cases in APAC, particularly in SME credit and supply chain finance. Platforms like Bizongo (India), Akulaku (Indonesia), and Airwallex (Australia) are embedding financial services into procurement, invoicing, and logistics platforms to offer working capital and cross border payment solutions.
- SMEs across the region face persistent credit access issues, especially in Southeast Asia and South Asia. Embedded models help reduce underwriting risk by leveraging transactional data from ERP, e commerce, or logistics platforms. Regulatory sandbox initiatives in Singapore, Malaysia, and India are also enabling experimentation with alternate credit scoring and embedded underwriting.
- The trend is expected to accelerate as more platforms move upstream in the SME value chain, especially in countries with fragmented banking infrastructure. Financial services may become bundled into B2B SaaS, commerce, and logistics tools, creating sticky ecosystems. Banks and fintechs will increasingly partner with vertical SaaS and ERP platforms to access SME data for underwriting.
Embedded insurance is gaining traction through digital distribution and contextual bundling
- Insurance products are increasingly being embedded into digital experiences across Asia Pacific especially in travel, mobility, e commerce, and health related platforms. Companies like CoverGo (Hong Kong), Igloo (Southeast Asia), and Paytm Insurance (India) are enabling contextual distribution of micro insurance products directly within partner apps.
- The low penetration of insurance across many APAC markets especially in Indonesia, Philippines, and India has led to demand for frictionless, bundled models. Regulatory support for digital only insurers (e.g., Hong Kong’s virtual insurance licensing, India’s sandbox for micro insurance), and rising consumer comfort with in app purchases, have facilitated this shift.
- The trend will continue to expand in scope and product complexity from one time travel or gadget insurance to embedded life, health, and income protection products. Digital marketplaces and platforms will become critical insurance distributors, particularly for underserved demographics. This could reduce distribution costs while creating new underwriting challenges around consent, disclosures, and claims servicing.
Consumer credit is being embedded across e commerce, edtech, and mobility platforms
- Buy Now, Pay Later (BNPL), installment credit, and small ticket loans are increasingly being embedded into digital consumer journeys across APAC. India based Simpl and Indonesia’s Kredivo, and Australia’s Afterpay are embedding point of sale credit across verticals including education, fashion, healthcare, and food delivery.
- Rising digital consumption among credit thin populations, particularly youth and gig workers, is driving demand for frictionless credit. The proliferation of alternative credit scoring and tokenized payment infrastructure (e.g., India’s Account Aggregator, Australia’s Consumer Data Right) is enabling risk managed lending at scale. Partner platforms also benefit from higher cart conversions and customer retention.
- BNPL and embedded credit offerings will likely become more regulated, especially in Australia, India, and Singapore, with requirements for transparency and affordability checks. Embedded credit will evolve beyond checkout financing to include recurring subscription loans, deferred tuition models, and bundled working capital products in the gig economy.
Open finance frameworks are unlocking data driven embedded finance models
- Open finance policies are enabling embedded finance providers to access user permissioned financial data, enhancing credit scoring, product personalization, and cross product bundling. Australia’s Consumer Data Right (CDR), India’s Account Aggregator framework, and South Korea’s MyData initiative are among the most advanced examples globally.
- Governments are actively promoting interoperability and competition in financial services. These frameworks are designed to reduce information asymmetry and give consumers more control over their financial data. Fintechs, neobanks, and non-financial platforms are leveraging these APIs to embed savings, credit, and investment products in real time.
- As technical and regulatory infrastructure matures, embedded finance models will become increasingly data driven and customized. Players that can navigate consent management and data protection regulations will gain competitive advantage. Over time, open finance is likely to shift embedded finance from product bundling to more dynamic, needs based financial engagement.
For more information about this report visit https://www.researchandmarkets.com/r/s98zri
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