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Philippines Embedded Finance Business Report 2024-2029: Rising Mobile Adoption, Unbanked and Underbanked Population, Major Fintechs Boosting Payment Gateway Ecosystem, Supportive Regulatory Landscape – ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Philippines Embedded Finance Business and Investment Opportunities Databook - 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.

Embedded Finance industry in Philippines is expected to grow by 47.2% on annual basis to reach US$ 1.94 billion in 2024. The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 35.0% during 2024-2029. The embedded finance revenues in the country will increase from US$ 1.94 billion in 2024 to reach US$ 8.74 billion by 2029.

The Philippines is witnessing a surge in the adoption of embedded finance, a revolutionary approach integrating financial services seamlessly within non-financial ecosystems. The Philippines boasts a young, tech-savvy population with high smartphone penetration. This, coupled with a large unbanked segment, creates a fertile ground for embedded finance solutions.

Unveiling the Power of Embedded Finance: Traditional financial institutions often struggle to reach the unbanked and underbanked population in the Philippines. Embedded finance bridges this gap by integrating financial tools like payments, loans, and insurance directly into everyday platforms. Convenience and accessibility are driving growth of embedded finance companies in the Philippines.

Key Drivers of Philippines Embedded Finance Market: Several factors are propelling the Philippines' embedded finance market forward:

Rising Mobile Adoption: With a high smartphone penetration rate, Filipinos are increasingly comfortable conducting financial transactions through their mobile devices. Embedded finance seamlessly integrates financial services within these familiar platforms, fostering convenience and accessibility. Between 2020 and 2023, the usage of mobiles at point of sale in the Philippines increased significantly.

Unbanked and Underbanked Population: A significant portion of the Philippine population remains unbanked or underbanked. Embedded finance offers them an alternative entry point into the financial system, bypassing traditional banking channels. Almost 44 to 50% or 34.3 to 36 million Filipino adults remain unbanked as of 2022, as per the Bangko Sentral ng Pilipinas (BSP) - the Country's central bank. Many of the unbanked live in rural and remote areas and have no access to banking services, such as savings accounts, credit cards, loans, and other forms of digital payments.

Major Fintechs Boosting Payment Gateway Ecosystem in Philippines: In the Philippines, digital payment gateways have emerged as vital stakeholders, revolutionizing the way individuals, businesses, and institutions manage their finances and transact consistently. Some digital payment gateways in the Philippines, includes D24, Dragonpay, PayMongo, PayMaya, and PesoPay.

Demand for Financial Services: Filipinos are increasingly seeking financial services like microloans, insurance, and investment options. Embedded finance caters to these needs by offering them within the context of everyday activities, such as online shopping or ride-hailing services.

Supportive Regulatory Landscape: The Bangko Sentral ng Pilipinas (BSP), the central bank, has adopted a forward-thinking approach to fintech regulation. This fosters innovation and encourages collaboration between traditional financial institutions and fintech players.

Major Deals and Innovation of Philippines Embedded Finance Market:

In Feb 2024, Singapore-based fintech UNOAsia, the primary incorporator of UNO Digital Bank in the Philippines, has raised $32.1 million in a pre-Series B funding round as it inches closer to profitability in 2024. The round brings the total amount raised by the fintech to approximately $75 million, a figure that includes its previously announced $11 million pre-Series A funding, and its largely Creador-backed $33.5 million pre-seed and seed rounds of 2022.

Key Players of Philippines Embedded Finance Market: The Philippines' embedded finance market is a dynamic space with a mix of established players and innovative startups driving growth.

Traditional Financial Institutions:

Banks: Major players like Banco de Oro (BDO), Metrobank, and Land Bank of the Philippines are actively partnering with tech companies to offer embedded financial services within their ecosystems.

Payment Networks: Leading payment processors like Visa and Mastercard are collaborating with businesses to integrate secure and efficient payment solutions.

FinTech and Technology Companies:

E-commerce and Ride-hailing Platforms: Companies like Grab and Shopee are integrating financial services like digital wallets and microloans within their platforms.

Wallet Providers: GCash, PayMaya, and Coins.ph are prominent players offering mobile wallets with embedded financial services like payments, bills payments, and even micro-investing.

FinTech Startups: A growing number of innovative startups are specializing in specific areas of embedded finance, like LendInvest (lending) and Fuse (insurance).

This report provides a detailed data-centric analysis of the embedded finance industry, covering lending, insurance, payment, wealth and asset based finance sectors market opportunities and risks across a range of different sectors. With over 75+ KPIs at the country level, this report provides a comprehensive understanding of embedded finance market dynamics, market size and forecast.

It breaks down market opportunities by type of business model, consumer segment, and distribution models. In addition, it also provides detailed information across a range of different segment in each sector of embedded finance. KPI revenue help in getting an in-depth understanding of end market dynamics.

The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

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.
  • Get insights at segment level, by the distribution model and by business model in key embedded finance segments
  • Insights into the asset based finance market size and by type of assets, by end users. 

Key Attributes:

Report AttributeDetails
No. of Pages130
Forecast Period2024 - 2029
Estimated Market Value (USD) in 2024$1.9 Billion
Forecasted Market Value (USD) by 2029$8.7 Billion
Compound Annual Growth Rate35.0%
Regions CoveredPhilippines

For more information about this report visit https://www.researchandmarkets.com/r/m3c13x

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