Fintech-as-a-Service Market: Overview
The global fintech-as-a-service market size was worth USD 245.4 billion in 2021 and is estimated to grow to USD 1000 billion by 2030, with a CAGR of approximately 16.90 percent over the forecast period.
The fintech-as-a-service is software that uses financial services to automate and enhance the customer experience. For business owners, it makes managing financial operations easier. Using specialized algorithms and software helps businesses, business owners, and consumers manage their procedures, financial processes, and lives in a better way. The market is expected to increase because consumers use their cell phones more frequently for online transactions and fintech-related services delivered through digital platforms. Furthermore, the increase in bank investments in cutting-edge technologies for enhancing their products and customer experiences might be attributed to market growth. Financial institutions see a surge in demand for fintech as a service (FaaS), or the delivery of financial technologies as a service, to improve their end-to-end processes and adhere to banking rules cost-effectively. The need for FaaS systems is being driven by the advantages provided by FaaS, such as low maintenance fees, inexpensive processing fees, protection against fraud and chargebacks, and greater customization.
Fintech-as-a-Service Market: Drivers
The increasing investments in the banking and finance industry to modernize and improve customer experience are likely to increase the size of the worldwide fintech-as-a-service market. Today’s digital world has seen rapid technical improvements across practically all industries due to technology’s advantages for streamlining operations and enhancing corporate productivity. Global market growth is projected to be aided by consumers’ preference to move toward digital technology. In addition, the global market is seeing an increase in different collaborations between banks and Information technology (IT) service providers as a result of more and more financial service providers taking significant and deliberate steps to meet client demands. A substantial global market development driver is projected to emerge from such a positive approach and the increase of fintech-as-a-service providers.
Fintech-as-a-Service Market: Restraints
Since fintech as a service deal with enormous sums of money, there is a propensity for end users to lack trust in general when it comes to the full adoption of FaaS systems. As a result, the growth of the global market is predicted to be constrained by pervasive skepticism. Furthermore, FaaS systems deal with monetary transactions and cater to financial institutions. Therefore, they must carefully abide by the rules set down for financial institutions or closely linked fields to earn greater respect. The issue becomes more serious when domestic businesses attempt to grow abroad or conduct international business. It is predicted that such slow development will prevent the global market from growing to its full potential.
Fintech-as-a-Service Market: Segmentation
The global fintech-as-a-service market has been segmented into type, technology, application, and end-use.
Based on type, the market is divided into fintech-as-a-service for payment, fintech-as-a-service for funds transfer, fintech-as-a-service for loans, and fintech-as-a-service for other classes. Among these, the fintech-as-a-service for payment segment led the market in 2021 and is expected to maintain its dominance throughout the forecast period. The segment’s growth is predicted to be pushed by the growing integration of AI technology and API into mobile-based payment services for traditional banking. Besides, the fintech-as-a-service category is anticipated to grow significantly over the forecast period. In addition, some retail businesses also introduced contactless payments simultaneously to give customers a safe and secure form of payment.
Based on end-use, the market is classified into banks, financial lending companies, insurance, and other end-use. In 2021, the insurance category dominated the global market. Insurance companies use fintech-as-a-Service platforms to process claims and calculate risks accurately, which is projected to fuel the segment’s growth. Some retail businesses also introduced contactless payments to give customers a safe and secure payment. The market is expected to be driven by the insurance industry’s rising need for fintech-as-a-service platforms. Besides, the financial lending companies category is anticipated to grow the market at a significant rate over the forecast period. The segment is growing as consumers increasingly desire to use financial instruments conveniently from home.
Fintech-as-a-Service Market: Regional Landscape
In 2021, North America dominated the market for fintech-as-a-service. Due to factors including rising BFSI industry investment across the region and the presence of built infrastructure for cutting-edge technologies like 5G, AI, and ML in the banking and finance sector, the North American region exhibits considerable growth in the fintech-as-a-service market. For instance, according to AppsFlyer, the number of downloads of fintech apps increased by up to 110% during the previous two years. The US Additionally, US fintech app marketers contribute more than 35% of global budgets and will spend USD 985 million on user acquisition in 2020. Such changes increase the need for the North American fintech-as-a-service market. Furthermore, North America has seen a substantial increase in digital transformation use in recent years. As digital wallets can be accessed via mobile or smartphones, the rising popularity of smartphones among Americans and Canadians promotes the growth of the fintech-as-a-service market.
Fintech-as-a-Service Market: Competitive Landscape
Some of the main competitors dominating the global fintech-as-a-service market include- PayPal Holdings, Inc., Block, Inc., Mastercard Incorporated, Envestnet, Inc., Upstart Holdings, Inc., Rapyd Financial Network Ltd., Solid Financial Technologies, Inc., Railsbank Technology Ltd., Synctera Inc., and Braintree.
Recent Developments
- July 2021: Arion Bank’s payment solution provider Valitor will be purchased by Rapyd Financial Network Ltd. from the latter. Rapyd Industries spent $100 million on the transaction. Due to the purchase, customers from many industries will be able to integrate omnichannel payments with total streamlining. Additionally, it will help customers enter new markets, unlock revenue & growth opportunities, and reduce FX fees.
COVID-19 Impact on Fintech-as-a-Service Market:
The COVID-19 pandemic was a significant factor in the market’s expansion throughout the anticipated time frame. As more people were confined to their houses, contactless payment techniques and digital financial services became more popular. Customers worldwide were embracing contactless payment options as a secure form of exchange. Some retail businesses also introduced contactless payments to give customers a safe and secure payment. The increased use of digital fintech services during the pandemic, such as digital wallets, is positive for fintech as a service.
Global Fintech-as-a-Service Market is segmented as follows:
Fintech-as-a-Service Market by Type
- Fintech-as-a-Service for Payment
- Fintech-as-a-Service for Funds Transfer
- Fintech-as-a-Service for Loans
- Fintech-as-a-Service for Other Types
Fintech-as-a-Service Market by Technology
- API-based Fintech-as-a-Service
- Artificial Intelligence-based Fintech-as-a-Service
- RPA-based Fintech-as-a-Service
- Blockchain-based Fintech-as-a-Service
- Other Technology based Fintech-as-a-Service
Fintech-as-a-Service Market by Application
- KYC Verification
- Fraud Monitoring
- Compliance & Regulatory Support
- Other Applications
Fintech-as-a-Service Market by End Use
- Banks
- Financial Lending Companies
- Insurance
- Other End Uses
Fintech-as-a-Service Market by Region
- North America
- United States
- Canada
- Mexico
- Europe
- France
- United Kingdom
- Spain
- Germany
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
| Fintech-as-a-Service Market Report Scope |
| Report Attribute | Details |
| Market Size Value in 2022 | USD 286.87 billion |
| Revenue Forecast in 2030 | USD 1000 billion |
| Growth Rate | CAGR of 16.9 % from 2022 to 2030 |
| Base Year for Estimation | 2021 |
| Historical Data | 2017 – 2021 |
| Forecast Years | 2022 – 2030 |
| Quantitative Units | Revenue in USD million and CAGR from 2022 to 2030 |
| Report Coverage | Revenue forecast, company ranking, Trends
competitive landscape, and growth factors |
| Segments Covered | Type, Technology, Application, End Use, and Region |
| Regional Scope | North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
| Country Scope | U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico and Others |
| Key Companies Profiled | PayPal Holdings, Inc., Block, Inc., Mastercard Incorporated, Envestnet, Inc., Upstart Holdings, Inc., Rapyd Financial Network Ltd., Solid Financial Technologies, Inc., Railsbank Technology Ltd., Synctera Inc., and Braintree |
Table of Content
Fintech-as-a-Service Market Size, Share, Growth, and Forecast Report
1. Introduction
1.1. Report Description
1.1.1. Aim of the Report
1.1.2. Prospective Audience
1.1.3. Unique Selling Prepositions and Key Takeaways from the Report
1.2. Scope of the Research Study
1.3. Approach/Research Methodology
1.3.1. Secondary Research
1.3.2. Primary Research
1.3.3. Expert Panel Review
1.3.4. Market Data Breakdown and Data Triangulation
1.3.5. Research Approach for Market Size Estimation
1.3.5.1. Top-Down Approach
1.3.5.2. Bottom-Up Approach
1.3.6. Key Assumptions
1.4. Market Segmentation
1.4.1. Type
1.4.2. Technology
1.4.3. Application
1.4.4. End Use
2. Fintech-as-a-Service Market Overview
2.1. Introduction
2.2. Analysis by Type, 2017-2030 (US$ Billion)
2.3. Analysis by Technology, 2017-2030 (US$ Billion)
2.4. Analysis by Application, 2017-2030 (US$ Billion)
2.5. Analysis by End Use, 2017-2030 (US$ Billion)
2.6. Market Analysis by Region, 2017-2030 (US$ Billion)
3. Fintech-as-a-Service Market Dynamics
3.1. Introduction
3.2. Growth Drivers
3.3. Growth Restraints
3.4. Growth Opportunities
3.5. Porter’s Five Forces Analysis
3.5.1. Threat of New Entrants
3.5.2. Bargaining Power of Buyers/Consumers
3.5.3. Bargaining Power of Suppliers
3.5.4. Threat of Substitute Types
3.5.5. Intensity of Competitive Rivalry
3.6. Attractiveness Analysis
3.6.1. Type
3.6.2. Technology
3.6.3. Application
3.6.4. End Use
3.6.5. Region
3.7. Value Chain Analysis
4. Fintech-as-a-Service Market Competition Analysis
4.1. Fintech-as-a-Service Market Share Analysis by Company, 2019 – 2021
4.1.1. Top 3 Players, 2019 – 2021
4.1.2. Top 6 Players, 2019 – 2021
4.2. Strategic Initiatives
4.2.1. New Products Launch
4.2.2. Mergers/Acquisitions
4.2.3. Agreement and Collaborations
4.2.4. Partnerships, Joint Ventures, Expansion, and Distribution
5. Global Fintech-as-a-Service Market Analysis by Type, Technology, Application, and End Use, 2017-2030 (US$ Billion)
5.1. Type
5.1.1. Global Fintech-as-a-Service Market Share, by Type, 2021 and 2030
5.1.2. Global Fintech-as-a-Service Market Revenue, by Type, 2017-2030 (US$ Billion)
5.1.3. By Payment Market Analysis 2017-2030 (US$ Billion)
5.1.4. By Funds Transfer Market Analysis 2017-2030 (US$ Billion)
5.1.5. By Loans Market Analysis 2017-2030 (US$ Billion)
5.1.6. By Others Type Market Analysis 2017-2030 (US$ Billion)
5.2. Technology
5.2.1. Global Fintech-as-a-Service Market Share, by Technology, 2021 and 2030
5.2.2. Global Fintech-as-a-Service Market Revenue, by Technology, 2017-2030 (US$ Billion)
5.2.3. By API Market Analysis 2017-2030 (US$ Billion)
5.2.4. By Artificial Intelligence Market Analysis 2017-2030 (US$ Billion)
5.2.5. By RPA Market Analysis 2017-2030 (US$ Billion)
5.2.6. By Blockchain Market Analysis 2017-2030 (US$ Billion)
5.2.7. By Others Technology Market Analysis 2017-2030 (US$ Billion)
5.3. Application
5.3.1. Market Share, by Application, 2021 and 2030
5.3.2. Market Revenue, by Application, 2017-2030 (US$ Billion)
5.3.3. By KYC Verification Market Analysis 2017-2030 (US$ Billion)
5.3.4. By Fraud Monitoring Market Analysis 2017-2030 (US$ Billion)
5.3.5. By Compliance & Regulatory Support Market Analysis 2017-2030 (US$ Billion)
5.3.6. By Others Application Market Analysis 2017-2030 (US$ Billion)
5.4. End Use
5.4.1. Market Share, by End Use, 2021 and 2030
5.4.2. Market Revenue, by End Use, 2017-2030 (US$ Billion)
5.4.3. By Banks Market Analysis 2017-2030 (US$ Billion)
5.4.4. By Financial Lending Companies Market Analysis 2017-2030 (US$ Billion)
5.4.5. By Insurance Market Analysis 2017-2030 (US$ Billion)
5.4.6. By Others End Use Market Analysis 2017-2030 (US$ Billion)
6. Global Fintech-as-a-Service Market Type Analysis by Region, 2017-2030 (US$ Billion)
6.1. Payment Market Analysis 2017-2030 (US$ Billion)
6.1.1. North America
6.1.2. Europe
6.1.3. Asia Pacific
6.1.4. Latin America
6.1.5. Middle East & Africa
6.2. Funds Transfer Market Analysis 2017-2030 (US$ Billion)
6.3. Loans Market Analysis 2017-2030 (US$ Billion)
6.4. Others Type Market Analysis 2017-2030 (US$ Billion)
7. Global Fintech-as-a-Service Market Technology Analysis by Region, 2017-2030 (US$ Billion)
7.1. API Market Analysis 2017-2030 (US$ Billion)
7.1.1. North America
7.1.2. Europe
7.1.3. Asia Pacific
7.1.4. Latin America
7.1.5. Middle East & Africa
7.2. Artificial Intelligence Market Analysis 2017-2030 (US$ Billion)
7.3. RPA Market Analysis 2017-2030 (US$ Billion)
7.4. Blockchain Market Analysis 2017-2030 (US$ Billion)
7.5. Others Technology Market Analysis 2017-2030 (US$ Billion)
8. Global Fintech-as-a-Service Market Application Analysis by Region, 2017-2030 (US$ Billion)
8.1. KYC Verification Market Analysis 2017-2030 (US$ Billion)
8.1.1. North America
8.1.2. Europe
8.1.3. Asia Pacific
8.1.4. Latin America
8.1.5. Middle East & Africa
8.2. Fraud Monitoring Market Analysis 2017-2030 (US$ Billion)
8.3. Compliance & Regulatory Support Market Analysis 2017-2030 (US$ Billion)
8.4. Others Application Market Analysis 2017-2030 (US$ Billion)
9. Global Fintech-as-a-Service Market End Use Analysis by Region, 2017-2030 (US$ Billion)
9.1. Banks Market Analysis 2017-2030 (US$ Billion)
9.1.1. North America
9.1.2. Europe
9.1.3. Asia Pacific
9.1.4. Latin America
9.1.5. Middle East & Africa
9.2. Financial Lending Companies Market Analysis 2017-2030 (US$ Billion)
9.3. Insurance Market Analysis 2017-2030 (US$ Billion)
9.4. Others End Use Market Analysis 2017-2030 (US$ Billion)
10. Fintech-as-a-Service Market Analysis by Geography, 2017-2030 (US$ Billion)
10.1. North America Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.1.1. U.S. Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.1.1.1. Type
10.1.1.2. Technology
10.1.1.3. Application
10.1.1.4. End Use
10.1.2. Canada Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.1.3. Mexico Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.2. Europe Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.2.1. UK Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.2.1.1. Type
10.2.1.2. Technology
10.2.1.3. Application
10.2.1.4. End Use
10.2.2. France Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.2.3. Germany Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.2.4. Spain Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.2.5. Russia Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.2.6. Italy Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.2.7. Rest of Europe Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.3. Asia Pacific Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.3.1. China Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.3.1.1. Type
10.3.1.2. Technology
10.3.1.3. Application
10.3.1.4. End Use
10.3.2. Japan Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.3.3. South Korea Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.3.4. India Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.3.5. Australia Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.3.6. Southeast Asia Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.3.7. Taiwan Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.3.8. Rest of Asia Pacific Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.4. Latin America Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.4.1. Brazil Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.4.1.1. Type
10.4.1.2. Technology
10.4.1.3. Application
10.4.1.4. End Use
10.4.2. Argentina Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.4.3. Rest of Latin America Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.5. Middle East Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.5.1. Israel Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.5.1.1. Type
10.5.1.2. Technology
10.5.1.3. Application
10.5.1.4. End Use
10.5.2. Turkey Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.5.3. Saudi Arabia Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.5.4. UAE Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.5.5. Rest of Middle East Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.6. Africa Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.6.1. Egypt Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.6.1.1. Type
10.6.1.2. Technology
10.6.1.3. Application
10.6.1.4. End Use
10.6.2. South Africa Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
10.6.3. Rest of Africa Fintech-as-a-Service Market Analysis 2017-2030 (US$ Billion)
11. Company Profiles
11.1. PayPal Holdings, Inc
11.1.1. Company Overview
11.1.2. Financial Performance
11.1.3. Product Benchmarking
11.1.4. Strategic Initiatives
11.2. Block, Inc.
11.3. Mastercard Incorporated
11.4. Envestnet, Inc.
11.5. Upstart Holdings, Inc.
11.6. Rapyd Financial Network Ltd.
11.7. Solid Financial Technologies, Inc.
11.8. Railsbank Technology Ltd.
11.9. Synctera Inc.
11.10. Braintree
12. COVID-19 Impact Analysis
12.1. Global Fintech-as-a-Service Market, 2020 – 2030, Pre-V/S Post COVID 19
12.2. Estimated Impact of The Coronavirus (Covid-19) Epidemic on the Fintech-as-a-Service Market Size In 2022, By Scenario
13. Conclusion
