Fintech as a Service Market Segmentation:
Service Segment Analysis
The payments segment is the core pillar of the FaaS ecosystem, with an estimated revenue share of 45.3% by the end of 2037. The rising adoption of tech such as UPI, PSD2, FedNow, etc., is a major factor in the segment's growth. Moreover, in terms of investment metrics, trends highlight a greater funneling of investments for API-first payment engines and a push for greater interoperability in cross-border systems. For market entrants, opportunities are slated to be in embedded payment rails in e-commerce and digital wallets. FaaS players that are able to offer seamless modular payment platforms with strong SDKs and cloud-native infrastructures are positioned to capitalize on the surging digital payments across B2B and B2B2X models.
Application Segment Analysis
The retail banking segment is projected to maintain a 40.2% revenue share throughout the forecast timeline. A major driver of the segment is the acceleration of API ecosystems and modular architecture. Additionally, there has been a high demand for turn-key digital banking modules, contributing to the segment’s profitability. The rising demand for KYC has enabled banks to relaunch online platforms faster and at a more cost-effective rate. Within the segment, investment opportunities are rife in embedded loan/disbursement services and personalized financial management tools.
Our in-depth analysis of the global market includes the following segments:
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