The global revenue from embedded payments for embedded finance vendors will reach $59bn in 2027, rising from $32bn in 2023, according to Juniper Research.
This growth of 84% is expected to be driven by rising consumer enthusiasm for alternative payment methods, giving space for embedded finance vendors to grow.
These findings come from the research company’s new Embedded Finance: Key Trends, Segment Analysis & Market Forecasts 2022-2027 report.
Juniper Research believes the embedded payments will remove the dominance of cards within e-commerce.
An embedded payment where the payment processing functionalities are embedded into the checkout process on a website, including payment methods such as one-click checkout buttons via digital wallets or open banking payment rails.
The research also stated that the simplicity of one-click payments is critical to offering a strong user experience. However, this simplicity is under threat from the integration of too many payment options; creating a cluttered checkout process.
Another key finding from the report is that by 2027, 35% of embedded payments’ revenue will come from the B2B segment.
It stated that B2B payments have seen less implementation of new payment types due to complex accounts payable and receivable processes. However, this lack of development means the B2B market is underserved and is a priority for embedded finance as the market grows.
Juniper urges embedded finance vendors to bolster payment integration with key B2B access channels, such as B2B e-commerce marketplaces and accounting software.
Research co-author Nick Maynard said, “In order to rein in the expansion of different payment options at checkout, merchants looking to enhance their checkout process must focus on the most popular and lowest-cost-to-merchant options to drive their success. Focusing on instant payments linked channels will lower costs significantly compared to card payments and must be considered a top priority for merchants.”
Find the full report here.
Another recent report from Juniper Research found that the number of credit cards issued via digital card issuance platforms will exceed 321 million globally by 2027, up from 120 million in 2023.
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