The forecast: Embedded-finance-driven business lending will skyrocket in popularity to grow sixfold over the next five years, from $200 million in 2021 to $1.3 billion by 2026, according to research from Bain & Co and Bain Capital.
Data drilldown: The transaction value of embedded finance is projected to surge from $2.6 trillion to $7 trillion in the US by 2026, making up 10% of all US financial transactions, according to the report.
- Revenue opportunities for software platforms and infrastructure providers linked to embedded offerings will more than double, from $22 billion in 2021 to $51 billion in 2026.
- By 2026, consumer payment transactions through embedded platforms will more than double, reaching $3.5 trillion and earning platforms and enablers $21 billion in revenue.
- B2B payments are expected to jump three-fold to hit $2.6 trillion by 2026.