Embedded Finance Set to Reach $7.2 Trillion by 2030

Embedded finance is rapidly growing in Latin America, driven by a booming e-commerce market with Mexico leading the way. The market for embedded finance in Latin America is projected to reach $20 billion by 2027, as more than 65% of fintechs and e-commerce platforms in Mexico adopt integrated financial services to enhance customer experience. This growth is supported by the increasing use of digital wallets and buy-now-pay-later (BNPL) options, which are reshaping the financial landscape and expanding access to services for consumers and businesses alike. Globally, embedded finance is expected to reach $7.2 trillion by 2030, highlighting its transformative potential across various sectors, including trade finance, which simplifies access for SMEs. The integration of technologies like APIs, blockchain, and AI is crucial for facilitating real-time data sharing and credit approvals, further empowering businesses. Collaboration between traditional banks and fintech companies is becoming essential in this evolving financial ecosystem, emphasizing a shift towards partnership rather than competition.