Brazil's Embedded Finance industry is expected to grow by 45.3% on annual basis to reach US$3,741.9 million in 2022.
The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 27.0% during 2022-2029. The embedded finance revenues in the country will increase from US$3,741.9 million in 2022 to reach US$13,747.5 million by 2029.
The embedded insurance industry has experienced substantial growth in Brazil. This growth in the embedded insurance space can be primarily attributed to the growing number of insurtech firms emerging in Brazil. Notably, the number of insurtech firms has reached more than 200 in 2020, from less than 100 in 2017.
The rising popularity of embedded insurance policies is pushing the Brazilian start-ups to leverage this rapid growth by raising funds. The publisher expects that the market is likely to attract more investment in the next four to six quarters. It is also expected that capital infusion in the embedded insurance sector is projected to support the country's overall insurance penetration rate.
Moreover, insurtech firms are focusing on innovation and integrating new products in the motor insurance sector. The publisher anticipates an increasing number of vehicle owners to adopt auto insurance due to easy availability over the next few quarters. This will subsequently boost the growth of the embedded insurance industry in Brazil from the short to medium-term perspective.
The rising e-commerce industry is also offering a significant growth opportunity for the embedded insurance industry in the country.
In August 2020, Mercado Libre, the online marketplace company, launched a product to insure cell phones in Brazil. The insurance policy allows users to insure their smartphone screens or buy a complete robbery or theft coverage.
The embedded payment market in Brazil is still in the nascent growth stage. However, Brazil's huge population offers massive potential for the growth of the embedded payments market. Furthermore, growing investments in the market are expected to result in the evolution of the embedded payments market in the next four to eight quarters. Currently, the number of embedded payments providers is less in the country. With the growth in fundraising activities, the market is expected to grow from a short to medium term perspective.
Market players are increasingly joining hands to combine their expertise and develop new embedded payments solutions to capture the massive untapped population in Brazil.
In November 2020, Brazil-based fintech company EBANX and ride-hailing app Uber announced a partnership on PIX (a payment system launched by the Brazilian government.
Under this partnership, EBANX will allow Uber clients' needs of payments, localization, and good user experience through their solutions. Since a large population of Brazil does not have a bank account, Uber's clients are anticipated to benefit from the newly introduced instant payment platforms, whereas EBANX is expected to utilize Uber's existing client base.
The embedded lending market in Brazil is still in the nascent stage of growth. However, growing investments in the market are expected to result in the evolution of the embedded lending market in the forthcoming year. Currently, the country has only a handful of embedded lending providers. With the growth in fundraising activities, the market is expected to grow in the upcoming years.
Furthermore, Covid-19 has created a significant capital gap in the MSMEs segment in Brazil. Banks are unable to fill the $480 billion shortfall, which presents a significant opportunity for embedded lending providers in the country. To tap this opportunity, start-ups are entering the market, which is expected to result in the growth of the embedded lending market in Brazil.
In July 2021, Dinie, Brazil's pioneer API-first embedded finance fintech, raised US$3.8 million seed round led by Accion Venture Lab and K50 Ventures. The company plans to expand its reach into the micro, small, and medium enterprises (MSME) segment.
This report provides a detailed data centric analysis of market opportunity across 50+ segments in embedded finance industry covering lending, insurance, payment, and wealth sectors.
Brazil Embedded Finance Market Size and Forecast
Brazil Embedded Lending Market Size and Forecast
Embedded Lending by Consumer Segments, 2020 - 2029
Embedded Lending by B2B Sectors, 2020 - 2029
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, 2020 - 2029
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
Brazil Embedded Insurance Market Size and Forecast
Embedded Insurance by Industry, 2020 - 2029
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 Insurance Type, 2020 - 2029
Embedded Insurance in Life Segment
Embedded Insurance in Non-Life Segment
Embedded Insurance by Type of Offering, 2020 - 2029
Embedded Insurance in Product Segment
Embedded Insurance in Service Segment
Brazil Embedded Payment Market Size and Forecast
Embedded Payment by Consumer Segments, 2020 - 2029
Embedded Payment by End-Use Sector, 2020 - 2029
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
Brazil Embedded Wealth Management Market Size and Forecast