Market Insights - Industry Research Report

Fintech-as-a-Service Market

Fintech-as-a-Service Market Size, Share, & Growth Report by Type (Payment, Funds Transfer, Loans), By Technology (API-based, Artificial Intelligence-based, RPA-based, Blockchain-based), By Application (KYC Verification, Fraud Monitoring, Compliance & Regulatory Support), By End Use (Banks, Financial Lending Companies, Insurance) and By Region – Global and Regional Industry Overview, Market Intelligence, Premium Insights, Complete Analysis, Historical Data, and Forecasts 2022 – 2030

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

  1. Fintech-as-a-Service for Payment
  2. Fintech-as-a-Service for Funds Transfer
  3. Fintech-as-a-Service for Loans
  4. Fintech-as-a-Service for Other Types

Fintech-as-a-Service Market by Technology

  1. API-based Fintech-as-a-Service
  2. Artificial Intelligence-based Fintech-as-a-Service
  3. RPA-based Fintech-as-a-Service
  4. Blockchain-based Fintech-as-a-Service
  5. Other Technology based Fintech-as-a-Service

Fintech-as-a-Service Market by Application

  1. KYC Verification
  2. Fraud Monitoring
  3. Compliance & Regulatory Support
  4. Other Applications

Fintech-as-a-Service Market by End Use

  1. Banks
  2. Financial Lending Companies
  3. Insurance
  4. Other End Uses

Fintech-as-a-Service Market by Region

  1. North America
    • United States
    • Canada
    • Mexico
  2. Europe
    • France
    • United Kingdom
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  3. Asia Pacific
    • China
    • Japan
    • India
    • New Zealand
    • Australia
    • South Korea
    • Southeast Asia
    • Rest of Southeast Asia
  4. The Middle East & Africa
    • Saudi Arabia
    • UAE
    • Egypt
    • Kuwait
    • South Africa
    • Rest of the Middle East & Africa
  5. 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

Frequently Asked Questions

The increase in bank investments in cutting-edge technologies for enhancing their products and customer experiences might be attributed to market growth.
According to the report, 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 compound annual growth rate (CAGR) of approximately 16.90 percent over the forecast period.
North America dominated the global market for fintech-as-a-service in 2021 because more e-commerce platforms are being adopted.
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.

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