Australia Embedded Finance Business and Investment Opportunities Databook – 50+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q1 2023 Update

Australia Embedded Finance Business and Investment Opportunities Databook – 50+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q1 2023 Update
The Australian payments ecosystem has been growing at a steady pace over the last few years. The innovation led by the buy now pay later sector along with the growing adoption of digital payments among consumers during the global pandemic period has driven the growth of the embedded finance industry in Australia. The trend is projected to further continue in the Australian market, as global players and domestic firms continue to invest in the space.

The growth of the sector will be assisted by the increasing prominence of embedded insurance solutions among Australians. With new players entering the market, firms are also raising a funding round to compete and expand their reach among consumers in the country. Overall, the embedded finance industry is expected to record strong growth over the next three to four years in Australia.

Embedded finance firms are raising capital rounds to further accelerate their growth in Australia

The demand for embedded finance solutions has grown significantly among customers as well as businesses, in Australia and overseas. To cater to the growing demand and accelerate their growth, firms are raising funding rounds in the country.

• In September 2022, Shaype, an Australian embedded finance platform, announced that the firm raised an additional A$33 million in a Series C round. The firm is planning to use the capital to further accelerate its growth in the domestic market, while also expanding its geographical footprint from the short to medium-term perspective. In 2022, the firm expanded its embedded financial services for a range of businesses across sectors, including HR, financial services, proptech, and government entities.

PayNXT360 expects more such embedded finance platforms to raise capital from global private equity and venture capital firms to accelerate their growth and international expansion over the next three to four years.

The embedded insurance space is becoming increasingly competitive as more players enter the market

Ever since the pandemic outbreak, the embedded insurance space has recorded strong growth in Australia. Leading the growth in the sector, Cover Genius has changed the way consumers buy insurance policies in the country. As a result of the growing market, more and more firms are entering the space.

• In December 2022, Butter, an Australia-based embedded insurance provider, announced that the firm raised a seed funding round as it plans to enter the market. The firm raised US$1.3 million to launch embedded insurance policies for possessions like smartphones, laptops, earphones, and watches, among others. Along with Australia, the firm is also planning to expand its product offering in New Zealand and other Asian markets from the short to medium-term perspective.

With Gen Z as its major target market, the entry of Butter in the Australian embedded insurance space is projected to further drive the competitive landscape over the next three to four years. This will also support innovation and market growth in the country.

Australian BNPL providers are targeting growth in the travel and tourism space amid pent-up travel demand

The pandemic outbreak resulted in a two-year-long slump in the travel and tourism sector. However, with international borders reopening for tourism, buy now pay later providers are targeting growth in the sector, and are, therefore, entering into a strategic collaboration with travel-focused firms. For instance,

• In November 2022, Zip, the leading BNPL provider, announced a strategic alliance with JetStar, an airline operator. The partnership focuses on offering travelers a flexible payment option during the checkout process. Similar to Zip, Afterpay, another Australian BNPL firm now acquired by Square, also entered into a partnership with Expedia in the United States.
As travel activities continue to grow and travelers look for flexible payment solutions at the checkout, PayNXT360 expects more such collaborations in the growing embedded finance space in Australia from the short to medium-term perspective. This will keep assisting the overall industry growth over the next three to four years in Australia.

According to PayNXT360, Embedded Finance industry in the Australia is expected to grow by 46.4% on annual basis to reach US$4,277.0 million in 2023.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 35.1% during 2023-2029. The embedded finance revenues in the country will increase from US$4,277.0 million in 2023 to reach US$17,748.8 million by 2029.

This report provides a detailed data centric analysis of market opportunity across 50+ segments in embedded finance industry covering lending, insurance, payment, wealth and asset based finance sectors.

Reasons_to_buy
• In-depth Understanding of Embedded Finance Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028).
• Insights into Opportunity by end-use sectors – Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate embedded finance strategy; assess market specific key trends, drivers, and risks in the industry.
• Get Sector Insights: Drawing from proprietary survey results, this report identifies opportunities across embedded lending, embedded insurance, embedded finance, and embedded wealth sectors.

Scope
This report provides indepth, datacentric analysis of Embedded Finance industry in Australia. Below is a summary of key market segments:

Australia Embedded Finance Market Size and Forecast

• Embedded Finance by Key Sectors
Retail
Logistics
Telecommunications
Manufacturing
Consumer Health
Others

• Embedded Finance by Business Model
Platforms
Enabler
Regulatory Entity

• Embedded Finance by Distribution Model
Own Platforms
Third Party Platforms

Australia Embedded Insurance Market Size and Forecast

• Embedded Insurance by Industry
Embedded Insurance in Consumer Products
Embedded Insurance in Travel & Hospitality
Embedded Insurance in Automotive
Embedded Insurance in Healthcare
Embedded Insurance in Real Estate
Embedded Insurance in Transport & Logistics
Embedded Insurance in Others

• Embedded Insurance by Consumer Segments
B2B
B2C

• Embedded Insurance by Type of Offering
Embedded Insurance in Product Segment
Embedded Insurance in Service Segment

Embedded Insurance by Business Model
Platforms
Enabler
Regulatory Entity

• Embedded Insurance by Distribution Model
Own Platforms
Third Party Platforms

• Embedded Insurance by Distribution Channel
Embedded Sales
Bancassurance
Broker’s/IFA’s
Tied Agents

• Embedded Insurance by Insurance Type
Embedded Insurance in Life Segment
Embedded Insurance in NonLife Segment

• Embedded Insurance in NonLife Segment
Motor Vehicle
Fire and Property
Accident and Health
General Liability
Marine, Aviation and other Transport
Other

Australia Embedded Lending Market Size and Forecast

• Embedded Lending by Consumer Segments
Business Lending
Retail Lending

• Embedded Lending by B2B Sectors
Embedded Lending in Retail & Consumer Goods
Embedded Lending in IT & Software Services
Embedded Lending in Media, Entertainment & Leisure
Embedded Lending in Manufacturing & Distribution
Embedded Lending in Real Estate
Embedded Lending in Other

• Embedded Lending by B2C Sectors
Embedded Lending in Retail Shopping
Embedded Lending in Home Improvement
Embedded Lending in Leisure & Entertainment
Embedded Lending in Healthcare and Wellness
Embedded Lending in Other

• Embedded Lending by Type
BNPL Lending
POS Lending
Personal Loans

• Embedded Lending by Business Model
Platforms
Enabler
Regulatory Entity

• Embedded Lending by Distribution Model
Own Platforms
Third Party Platforms

Australia Embedded Payment Market Size and Forecast

• Embedded Payment by Consumer Segments
B2B
B2C

• Embedded Payment by EndUse Sector
Embedded Payment in Retail & Consumer Goods
Embedded Payment in Digital Products & Services
Embedded Payment in Utility Bill Payment
Embedded Payment in Travel & Hospitality
Embedded Payment in Leisure & Entertainment
Embedded Payment in Health & Wellness
Embedded Payment in Office Supplies & Equipment
Embedded Payment in Other

• Embedded Payment by Business Model
Platforms
Enabler
Regulatory Entity

• Embedded Payment by Distribution Model
Own Platforms
Third Party Platforms

Australia Embedded Wealth Management Market Size and Forecast

Australia Asset Based Finance Management Industry Market Size and Forecast
• Asset Based Finance by Type of Asset
Hard Assets
Soft Assets

• Asset Based Finance by End Users
SME’s
Large Enterprises