DUBLIN–(BUSINESS WIRE)–The “Africa & Middle East Embedded Finance Business and Investment Opportunities Databook – 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments – Q1 2024 Update” report has been added to ResearchAndMarkets.com’s offering.

Embedded Finance industry in Africa & Middle East is expected to grow by 36.4% on annual basis to reach US$ 13.43 billion in 2023. The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 27.5% during 2024-2029. The embedded finance revenues in the region will increase from US$ 13.43 billion in 2024 to reach US$ 45.22 billion by 2029.

The Middle East and Africa (MEA) region is experiencing a surge in embedded finance adoption. Embedded finance integrates financial services like payments, lending, and insurance within non-financial platforms. This creates a seamless user experience and removes friction from traditional financial processes.

Market Drivers of Middle East & Africa Embedded Finance Market

High smartphone penetration and young, tech-savvy population: The MEA region boasts a rapidly growing smartphone user base, particularly among young adults. This creates a fertile ground for adopting mobile-first financial solutions. According to GSMA Intelligence, there will be an estimated 535 million unique mobile subscribers in the MEA region by 2025, representing a penetration rate of 65%.

Underbanked population: A significant portion of the MEA population remains unbanked or underbanked. Embedded finance offers financial inclusion by providing access to financial services through familiar platforms. The World Bank estimates that 31% of adults in the Middle East and North Africa (MENA) region and 41% of adults in Sub-Saharan Africa lack an account at a formal financial institution.

Growing e-commerce and on-demand services: The rise of e-commerce and on-demand services like ride-hailing creates a natural fit for embedded finance solutions, offering seamless payment and financing options within the platform. According to Jumia, a leading e-commerce platform in Africa, the continent’s online sales are expected to reach $180 billion by 2025.

Increased focus on financial inclusion: Governments in the MEA region is actively promoting financial inclusion initiatives. Embedded finance aligns with these goals by providing alternative access to financial services. The World Bank’s Global Findex Database reports that the percentage of adults with a mobile money account in Sub-Saharan Africa has grown from 21% in 2,014 to 34% in 2021.

Key Trends of Middle East & Africa Embedded Finance Market

  • Rise of Buy Now, Pay Later (BNPL): BNPL solutions are gaining traction, allowing consumers to spread purchase costs across installments. This trend is expected to continue as embedded finance facilitates integration of BNPL options within various platforms.
  • Open Banking adoption: Open Banking regulations are gradually being implemented in some MEA countries. This fosters collaboration between financial institutions and fintech companies, driving innovation in embedded finance solutions.
  • Emerging technologies: Integration of technologies like Artificial Intelligence (AI) and Blockchain can personalize financial offerings and enhance security within embedded finance solutions.

Major Deals and Innovation of Middle East & Africa Embedded Finance Market

  • Qashio and CredibleX (2024): Qashio and CredibleX have partnered on an initiative to provide financing to businesses in the Middle East and North Africa (MENA) region. The new Qashio Financing solution provides immediate approvals and disbursements, competitive rates, and a user-friendly application process for Qashio’s customers.
  • Souqalmal (MENA) Partnership (2023): Souqalmal, a price comparison platform in the Middle East and North Africa (MENA) region, partnered with several banks in 2023 to offer embedded loan options within their platform. This allows users to compare prices and seamlessly apply for financing for desired products directly through Souqalmal, streamlining the shopping experience.
  • Tabby Funding (UAE, 2024): Tabby, a leading Buy Now, Pay Later (BNPL) provider in the UAE, raised a significant $950 million in funding in 2024. This substantial investment highlights investor confidence in the potential of embedded finance, particularly in the BNPL segment, within the MEA region.
  • In 2024, OmniRetail plans embedded finance expansion in Nigeria, Ghana, Cote d’Ivoire.
  • In 2023, CredibleX, MENA’s pioneering embedded finance platform, has announced its launch after being granted regulatory licenses from the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM). These licenses provide a robust regulatory framework for its launch, bringing confidence and trust to CredibleX’s partners and customers. It has also announced partnerships with ADGM as the first fintech partner of its SME financing platform, Numou; as well as with partners in FMCG and financial services.

Competitive Landscape: The MEA embedded finance space is witnessing a rise in competition, with established financial institutions partnering with fintech startups to leverage their expertise. Global tech giants are also eyeing the market, offering embedded finance solutions alongside their core services.

Established Financial Institutions:

  • Standard Bank (South Africa): A leading African bank offering embedded finance solutions for businesses, including payment processing and merchant cash advance options.
  • Emirates NBD (UAE): A prominent bank in the UAE that has partnered with fintech companies to offer embedded financial services, including BNPL solutions and in-app payments.
  • National Bank of Egypt (Egypt): A major player in the Egyptian market, exploring embedded finance solutions through partnerships with e-commerce platforms and telecommunications companies.

Fintech Startups:

  • Thriive (Kenya): A Kenyan fintech startup providing embedded financial solutions for businesses, focusing on micro-loans, payments, and savings accounts.
  • Telda (South Africa): A South African fintech company offering embedded insurance solutions for on-demand services and e-commerce platforms.
  • Mpesa (Kenya & East Africa): While not strictly an embedded finance player, Mpesa’s mobile money platform serves as a foundation for embedded financial services in the region, facilitating payments and potentially integrating other financial products in the future.

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.

Key Attributes:

Report Attribute Details
No. of Pages 1125
Forecast Period 2024 – 2029
Estimated Market Value (USD) in 2024 $13.4 Billion
Forecasted Market Value (USD) by 2029 $45.2 Billion
Compound Annual Growth Rate 27.5%
Regions Covered Africa, Middle East

A bundled offering, combining the following 9 reports

  • Africa & Middle East Embedded Finance Business and Investment Opportunities
  • Egypt Embedded Finance Business and Investment Opportunities
  • Israel Embedded Finance Business and Investment Opportunities
  • Kenya Embedded Finance Business and Investment Opportunities
  • Nigeria Embedded Finance Business and Investment Opportunities
  • Saudi Arabia Embedded Finance Business and Investment Opportunities
  • South Africa Embedded Finance Business and Investment Opportunities
  • Turkey Embedded Finance Business and Investment Opportunities
  • United Arab Emirates Embedded Finance Business and Investment Opportunities

For more information about this report visit https://www.researchandmarkets.com/r/hbavfc

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