DUBLIN--(BUSINESS WIRE)--The "Japan 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 Japan is expected to grow by 38.8% on annual basis to reach US$ 10.66 billion in 2024. The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 27.7% during 2024-2029. The embedded finance revenues in the country will increase from US$ 10.66 billion in 2024 to reach US$ 36.29 billion by 2029.
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.
Japan's embedded finance market has seen significant growth and innovation in recent years, driven by partnerships between traditional financial institutions, tech companies, and startups. Embedded finance, which involves integrating financial services into non-financial platforms, has gained traction in Japan due to its potential to enhance customer experiences and drive revenue growth for businesses.
Best Embedded Finance Platforms in Japan in 2023-2024: The embedded finance market in Japan is still considered to be in its early stages compared to some other countries. This might affect the availability and maturity of some platforms. However, there are still some strong options to consider, including:
- Plaid: This is the easiest way for users connect their bank accounts with an app. Plaid gives developers the tools they need for creating easy-to-use experiences for their users. Plaid has enabled millions of people to connect their accounts to the apps they love. Plaid can be implemented in a matter of minutes with just a few lines of code.
- Stripe: The new standard for online payments. Stripe is the best platform to run an internet business. For forward-thinking businesses all over the globe, the platform handle billions of dollars annually. Stripe creates the most flexible and powerful tools for internet commerce. Whether the customer creating a subscription service, an on-demand marketplace, an e-commerce store, or a crowdfunding platform.
- Wallester: Wallester is a regulated company, holding a financial license. Official Visa partner and Visa Principal Member. Wallester Business provides companies with the solution to open an account and instantly issue an unlimited number of Visa virtual and physical cards, using which the company will be able to manage all corporate expenses with a single smart platform.
- AlphaPoint: AlphaPoint is a global financial technology company providing digital asset infrastructure to power the next generation of exchanges, brokerages, payment networks, and banking. Its full-suite products provide trusted, secure, scalable, and customizable solutions for trading, payments, lending, and custody.
- Spreedly: Spreedly is a platform for payments orchestration, is available on the App Store. Organizations that are rapidly growing, entering new markets, trying to reduce their compliance burden or lowering payments costs, often find they cannot adapt their infrastructure to accept payments as their business requires.
Growth Driver in Japan: The Japanese government has been actively promoting a cashless society to improve efficiency, reduce costs, and enhance transparency in financial transactions. Initiatives such as the My Number system and cashless payment rebates have encouraged businesses and consumers to adopt digital payment methods, creating opportunities for embedded finance platforms. Several key market drivers are fueling the growth of embedded finance platforms in Japan:
Digital payments in Japan: Japan's digital payments market is also evolving, with the government aiming to have 40% of transactions be cashless by 2025. The most popular digital payment service in Japan is PayPay, a joint venture between Yahoo Japan and Softbank established in 2,018. PayPay accounts for nearly 40% of the market while the next closest competitor, NTT Docomo's d-Harai, takes up about 22%. PayPay's strong market share has been attributed partly to cash-back campaigns and providing the service for free to smaller shops to attract interest from both vendors and shoppers.
- High levels of crypto awareness in Japan: Japan is also a well-developed cryptocurrency hub. Though Japan's crypto market has experienced difficulties in the past, such as the hack of the cryptocurrency exchange Coincheck in 2018, government regulation since 2018 has enhanced security and transparency in Japan's crypto ecosystem. Recently, well-known firms including DMM and Rakuten have introduced cryptocurrency wallets and exchange systems of their own. Notably, Rakuten's decision this February to allow Bitcoin and Ethereum to be used to charge users' Rakuten Cash balance has increased the scope for cryptocurrencies to be used in day-to-day transactions. Japan holds a lot of potential for crypto-connected firms wishing to enter its market, not least because of high levels of crypto awareness in Japan.
Major Innovation and Partnership in Japan: There are some unique characteristics of Embedded Finance in Japan. First, enablers are usually license holders. In the Embedded Finance field, the players are ordinarily divided into three categories: brands, enablers, and license holders; however, enablers (as player of the second category) act as license holders (as player of the third category). The second unique characteristic is that financial companies are users of embedded finance. This is because the speed of digital transformation at traditional financial companies is relatively slow, and traditional financial companies seek to utilize embedded finance to accelerate their digital transformation.
- In Nov 2023, Stripe, a financial infrastructure platform for businesses, announced expanded support for JCB, a leading card network in Japan and one of the top payment networks in the world. JCB is now available on Stripe in 39 countries and territories, making it easy for businesses in those markets to accept payments from 154 million JCB cardholders.
- In October 2021, embedded financial services platform, Orenda announced it joined forces with global payments and card issuance leader, Nium in a partnership that will see Orenda leverage Nium's BaaS (Banking-as-a-Service) API suite, to provide a no code, end-to-end serverless banking infrastructure for their clients.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 130 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value (USD) in 2024 | $10.7 Billion |
| Forecasted Market Value (USD) by 2029 | $36.3 Billion |
| Compound Annual Growth Rate | 27.7% |
| Regions Covered | Japan |
Scope
Japan 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
Japan 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
- Brokers/IFAs
- Tied Agents
Embedded Insurance by Insurance Type
- Embedded Insurance in Life Segment
- Embedded Insurance in Non-Life Segment
Embedded Insurance in Non-Life Segment
- Motor Vehicle
- Fire and Property
- Accident and Health
- General Liability
- Marine, Aviation and other Transport
- Other
Japan 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
Japan Embedded Payment Market Size and Forecast
Embedded Payment by Consumer Segments
- B2B
- B2C
Embedded Payment by End-Use 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
Japan Embedded Wealth Management Market Size and Forecast
Japan 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
- SMEs
- Large Enterprises
For more information about this report visit https://www.researchandmarkets.com/r/hgjy8u
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