Embedded Payments Revenue to Surpass $59 Billion Globally by 2027, as Integrated Payments Threaten Card Dominance

A new study from Juniper Research has found that the global revenue from embedded payments for embedded finance vendors will reach $59 billion in 2027, from $32 billion in 2023; representing growth of 84%. The report, Embedded Finance: Key Trends, Segment Analysis & Market Forecasts 2022-2027, predicts growth of integrated payments will erode the dominance of cards within eCommerce. This will be driven by rising consumer enthusiasm for alternative payment methods; creating a sizeable revenue opportunity for embedded finance vendors.

Embedded payments are where payment processing functionalities are embedded into the checkout process on a website, including alternative payment methods such as one-click checkout buttons via digital wallets or Open Banking payment rails.

For more insights, download their  free whitepaper: Revolutionising Fintech with Embedded Finance

Checkout Simplicity Must Be Prioritised for Merchant Success

The research identified the simplicity that one-click payments allow as critical to providing a strong user experience. Yet, this simplicity is under threat from the integration of too many payment options; creating a cluttered checkout process.

Research co-author Nick Maynard explained: “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.”

B2B Lagging Behind, but Still a Major Opportunity

The research also forecasts that by 2027, 35% of embedded payments’ revenue will be from the B2B segment. B2B payments have seen less implementation of new payment types to date, with complex accounts payable and receivable processes creating a difficult ecosystem to manage. However, this lack of development means that the B2B market is a comparatively underserved market, and must be a clear priority for embedded finance players as the market grows. Embedded finance vendors must focus on bolstering payment integration with key B2B access channels, such as B2B eCommerce marketplaces and accounting software, to maximise their appeal in this high-potential market.