Report Predicts Significant Growth for Australia’s Embedded Finance Industry by 2029

Must Read

An analysis said that the embedded finance sector in Australia is anticipated to grow significantly over the coming years. 

According to the Australia Embedded Finance Business and Investment Opportunities Report 2023, the industry revenues will reach US$4,277.0 million in 2023 and US$17,748.8 million in 2029, growing by 46.4% yearly. 

It mentions that the sector will increase due to Australians’ rising preference for embedded insurance solutions and the ongoing innovation in the ‘Buy Now, Pay Later’ market.

Companies in the nation are raising capital rounds to further speed up their expansion to take advantage of the rising demand for embedded finance solutions

While Butter, an embedded insurance provider, raised US$1.3 million in a seed investment round in December 2022, Shaype, an Australian embedded financial platform, raised A$33 million in a Series C round in September 2022. 

The report predicts that as more businesses enter the market and competition heats up, embedded finance platforms will raise funding from international private equity and venture capital firms to support their growth and global expansion.

“Globally, travel activities have posted a strong rebound after two years of pandemic-induced restrictions,” the study highlighted.

As a result, ‘Buy Now, Pay Later’ providers are targeting growth in the travel and tourism space amid pent-up demand. 

In November 2022, Zip and JetStar announced a strategic partnership to give customers more flexible payment options. In the US, Afterpay also struck up a collaboration with Expedia. More of these cooperations in Australia’s expanding embedded finance sector are anticipated as travel activity grows.

The Australia Embedded Finance Business and Investment Opportunities Report 2023 provides a comprehensive analysis of market opportunities across more than 50 segments in the embedded finance industry, covering lending, insurance, payment, wealth, and asset-based finance sectors. Overall, the embedded finance industry in Australia is well-positioned for solid growth over the next three to four years.

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img