EMBEDDED LENDING MARKET companies

Market Concentration and Competitive Landscape

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The increasing preference of consumers for seamless and customized financing solutions integrated within product purchase flows is a major factor propelling the embedded lending market forward. Customers want the convenience of getting pre-qualified loan decisions in real-time and ability to complete the loan and purchase in a single online transaction. This consumer behavior is encouraging businesses across sectors like retail, auto, real estate, etc. to embed financing solutions into their purchase experience.

Companies are able to boost sales and customer satisfaction by offering instant credit approvals and flexible repayment plans customized to individual needs and budgets. For example, buy-now-pay-later services embedded on e-commerce platforms saw a rise in usage from 52 million users in 2020 to over 100 million users in 2022 according to the World Payments Report 2022 by the World Bank. Consumers found value in dividing large purchases into interest-free monthly installments. Businesses gained by converting more browsing customers into buyers.

This rising preference for embedded buying and instant financing among digital-savvy customers is set to increase going forward. More sectors will look to capitalize on the opportunity by collaborating with lending firms to provide personalized and automated credit approval and disbursement. Technologies facilitating fast underwriting using alternative data sources will further boost embedded lending. Both customers and businesses stand to benefit from the seamless purchase experiences and sales conversions this market enables.

• Affirm
• Afterpay
• Alchemy
• Banxware
• Biz2X
• Finastra
• Hokodo
• Jaris
• Kanmon
• Klarna
• Lendflow
• Liberis
• Migo
• Sivo
• Stripe, Inc.
• Tapwater
• Turnkey Lender
• Zopa Bank Limited