Niche market segments captured by integrated payment providers through partnerships

A report has been added to ResearchAndMarkets.com’s offering on “Business and Investment Opportunities in Integrated Finance in Europe – Over 50 KPIs Across Lending, Insurance, Payments and Wealth Segments Integrated – First Quarter 2022 Update”.

The integrated finance industry is expected to grow steadily over the forecast period, registering a CAGR of 21.4% during the period 2022-2029. Integrated financial revenue in the region will grow from US$42,310.2 million in 2022 to US$121,508.7 million by 2029.

The European integrated finance sector is expected to grow by 35.6% on an annual basis to reach US$42,310.2 million in 2022.

In Europe, integrated loans are becoming increasingly popular with consumers due to the growing popularity of the “buy now, pay later” loan model. Consumers are increasingly looking for a convenient and innovative payment option for online purchases.

Integrated loans are most popular in the UK compared to other countries in the European region. The UK is an early adopter of in-app lending options for making purchases. Buyers in the UK find retail financing a convenient way to spread the cost of expensive purchases.

BNPL loan mode is the most popular among consumers due to its affordability and convenience. Some of the major players offering the BNPL service include Klarna, PayPal Credit, and Splitit in the region.

Furthermore, the pandemic has also propelled the demand for embedded loans in crucial industrial segments in European countries. The trust factor is higher for traditional banks. However, convenience and speed are the key factors that have helped integrated lenders compete with traditional banks.

Market players are raising funds to expand their offerings for the business loan segment.

The corporate lending segment offers a significant growth opportunity for post-pandemic integrated lending companies. Market players are raising funds to improve their offering and expand their presence in the business loan segment. This will help lending companies and ecosystem players to capitalize on the overall prospects of this market. In December 2020, UK-based revenue-based funding platform provider Liberis raised £70m, bringing the company’s valuation to £200m. The fund was raised by the company’s former investors including British Business Investments, Paragon Bank, BCI Europe and new investor Silicon Valley Bank.
The newly raised funds will be used to launch new products and enter new markets offering strong growth opportunities.
With businesses, the development of new products should lead to innovations and improved functionality in the integrated lending platform.

The integrated insurance landscape is booming in Europe and countries such as the UK, Germany and France have made a significant contribution to the growth of the integrated insurance business in the region. To remain competitive in the market and keep up with constantly changing customer requirements, European insurers are changing their business models and striving to improve their distribution channels. Moreover, with the growing number of new entrants to the region, the European integrated insurance market is booming. Tremendous increases in new fundraising propel the market to new heights.

According to the publisher’s analysis, European insurtech start-ups exceeded 2020 total capital investment by more than US$1 billion in the first quarter of 2021, with a total of nearly than US$2 billion invested in more than 50 transactions. . Over the next four to eight quarters, increased financial activity is expected to increase demand for integrated insurance. In June 2021, German digital insurance startup Wefox raised a $650 million Series C funding round led by Target Global. Wefox is a digital insurer specializing in personal insurance products such as home insurance, car insurance and liability insurance. With the latest fundraising, the company reached a total value of US$3 billion.
In June 2021, Bought By Many, a London, UK-based pet insurance provider, raised US$350 million in Series D funding, bringing the total company value to more than 2 billion US dollars.
Both companies plan to use these funds to expand their operations in European countries.
The publisher expects the continuation of investment cycles in the integrated insurance sector in Europe over the next four to eight quarters.
The unforeseen market scenario that caused a shift in the payments industry at the start of 2021 persisted throughout the year. These changes have accelerated the development of three major themes that continue to influence the competitive dynamics within the payment ecosystem in European countries: the rapid rise of e-commerce activities, the proliferation of innovative payment methods and the development of next-generation payment infrastructures.

The payment industry in Europe is going through a testing phase, and incumbents of the payment market ecosystem need to evolve to stay relevant in the industry, as ever-changing customer demand renders the current system obsolete. Moreover, European companies have been investing heavily in in-vehicle payment solutions over the past quarters, which has led to market growth. Customers increasingly expect e-commerce platforms to provide a seamless shopping experience. Integrated payment is the solution to these ever-increasing customer demands. It also allows businesses to provide value-added benefits to customers and increase loyalty.

Integrated Payments Providers Capture Niche Market Segments Through Partnerships With increasing competition in the integrated payments market across various industries, integrated payment platform providers are untapped segments. In-vehicle payment providers are collaborating with niche industry players to expand their customer base.

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  • Niche market segments captured by integrated payment providers through partnerships
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