Total BaaS revenue to exceed $38bn by 2027

Total BaaS revenue to exceed $38bn by 2027

The total banking-as-a-service (BaaS) platform revenue will exceed $38bn by 2027, rising from $11bn in 2022, according to a report from Juniper Research.

Its report claims the rapid growth of 240% will be driven by BaaS’ ability to deepen relationships between brands and their customers by providing a user-friendly banking and payments experience.

BaaS enables non-banking companies to offer their customers financial services without owning a banking licence or infrastructure. This allows brands to generate new revenue without using time and resources to generate new capabilities in house.

Its report assessed the top 15 BaaS vendors within the global market. Its top three vendors were Green Dot, Marqeta and Solaris.

Each vendor was evaluated based on the same criteria, which included distribution and partnerships, breadth of offering and future business prospects in BaaS.

It found that Green Dot leads the BaaS market largely due to its strong partnerships; specifically with large retailers such as Apple and Walmart. Alongside this, it stated that the company has an impressive array of banking and payments solutions, including card issuance, custom rewards and payroll services.

Marqeta also ranked high due to its international presence and being able to leverage a competitive position when onboarding multinational customers.

Research author Dominique Tetnowski said, “As digital banking is becoming increasingly advanced, pressure is on FinTechs to innovate their BaaS capabilities to exceed user expectations.

“Offering a solutions portfolio in BaaS that has all the capabilities needed to offer banking services means that enterprises can focus on delivering a superior user experience, which is critical in an increasingly competitive banking environment.”

Another report from Juniper Research found that the total volume of international digital remittances will exceed two billion in 2027, up from just over 1.1 billion in 2022. It believes the growth in international digital remittances will be caused by the rising speed and low cost of digital remittances versus traditional agent-based services.

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