Embedded Payments Market Report Scope & Overview:

The Embedded Payments Market was valued at USD 23.9 Billion in 2024 and is expected to reach USD 192.9 billion by 2032, growing at a CAGR of 29.82% from 2025-2032.

Embedded Payments Market is changing the face of digital commerce as it facilitates quick, integrated financial transactions inside the non-financial platforms. So, a user can make the payments without leaving an app or a platform's native environment, increasing user experience and conversion rates. This growth is mainly driven by the increasing trend of Account-to-Account transactions, which are economical and also facilitate transactions in real-time. The growth of e-commerce and the gig economy, coupled with consumer expectations for quicker checkouts, is also driving embedded payment use cases across verticals such as retail, healthcare, and transportation.

According to reports, over 60% of consumers globally now prefer using digital wallets for embedded payments within apps or platforms, highlighting a shift away from traditional cards.

Market scalability is further strengthened by the integration of API-based payment solutions, digital wallets, and real-time payment infrastructure. From AI-powered fraud prevention to blockchain-enabled transactions that add a layer of trust and security, innovations in payment technology are motivating even more enterprises to embed payments in their platforms.

For Instance, Bank of America reported a 51% increase in clients utilizing APIs for real-time treasury operations over the past year, indicating a strong shift towards API-driven financial management.

The U.S. API-based payment solutions market was valued at USD 3.4 billion in 2024 and is projected to reach USD 29.7 billion by 2032, growing at a CAGR of  31.14% during the forecast period. This growth is driven by the increasing demand for real-time payment systems, open banking integrations, and the rising adoption of digital wallets and mobile payments across industries.

The U.S. digital wallet adoption is also on the rise, with 48% of consumers using their digital wallets for online shopping and 39% using them in-store. This trend reflects a shift towards contactless and mobile payment methods, aligning with the broader adoption of embedded payment solutions.

Embedded Payments Market Dynamics

Drivers

• Increased preference for mobile payments and digital wallets due to convenience and security.

The embedded payments are growing significantly due to the rise of mobile payments and digital wallets. Mobile wallets such as Apple Pay, Google Pay, and Samsung Pay have become the preferred choice among consumers for their convenience, security, and speed. Such devices with digital wallets are used primarily with contactless payments to decrease payment flow friction. Also, e-commerce sites and in-app purchases are integrating digital wallets for simpler transactions, which is facilitating mass adoption. Digital wallets are at the forefront of the embedded payments market transition, thanks to the rise of consumers looking for far more frictionless and secure ways to pay.

According to a 2024 J.D. Power survey, 48% of U.S. consumers reported using digital wallets in the past 90 days, marking a 12 %  increase from 2023.

Restraint

• Growing risks of data breaches and identity theft that can undermine consumer trust.

Although payment systems have become more popular through embedded payments, security is a main concern both for the users and the companies. Digital payment methods contain a great risk of data breaches and identity theft. Cyber threats evolve just like payment systems do, so cyber threats need to adapt, which means constant changes in encryption and data protection protocols. Any breach in security can shake consumer confidence in embedded payments, stalling the growth of the market. To sustain the progress in market traction, trust, privacy, and security of transactions, companies have to introduce advanced cybersecurity measures like biometric authentication and two-factor authentication.

Opportunities

• Open banking and API integration enable customized, seamless, and secure payment solutions.

Open banking is a great opportunity in the embedded payments market. Through the integration of banking data and third-party benefit offerings, open banking encourages innovative payment systems by permitting third-party financial services providers to access banking data. This also allows firms to build more personalized, convenient payment experiences for consumers. By enabling apps, financial institutions, and merchants to transact seamlessly with one another, APIs enhance operational efficiencies. The global adoption of open banking will also accelerate the growth of the embedded payments space at the speed of adoption of businesses and consumers towards more secure, flexible, and tailored payment systems.

Challenges

• Complex and evolving regulatory requirements for payment systems across regions.

Embedded payments regulation is complicated and often fragmented regionally. Compliance with PCI-DSS  and regional laws like GDPR in Europe is expensive and time-consuming for businesses. Shifting regulatory landscape — resulting in new data privacy, cross-border transaction, and financial inclusion requirements — necessitates ongoing refinements to payment solutions. For most companies, this means maintaining agility, hiring legal and compliance experts to keep up with the rapidly changing state of global financial regulation, which challenges their ability to scale services quickly.

Embedded Payments Market Segmentation Analysis

By payment

In 2024, In-App Payments is expected to continue leading the market due to the ability to perform transactions within an application without redirecting to a third-party platform. In e-commerce and subscription-based business models, in-app payment is the most favored option among consumers with the growing mobile commerce and electronic services. In-app payments are likely to maintain their dominance through 2032, owing to continued smartphone penetration and rising demand for mobile-first experiences.

The API based segment is expected to witness the fastest growth over the forecast period, Due to the capability of API-based payments to enable seamless integration between different platforms, offering enhanced interoperability. This enables businesses to provide tailor-made solutions with excellent control over transaction process, making it an ideal fit for fintech startups to large enterprises.

By Deployment

The cloud segment dominated the market and accounted for 76% of revenue share, as it is scalable, flexible, and cost-effective. Cloud solutions have become appealing for retail, finance, healthcare industry, etc.,  due to the possibility to quickly scale payment systems, seamlessly manage data, and implement high-level security without a serious investment in infrastructure.

In 2025, Billtrust, recognized as a leader in the IDC MarketScape for Embedded Payment Applications, introduced AI-powered solutions that facilitate touchless payments and offer dynamic reporting and dashboards. 

The on-premises segment is expected to register the fastest CAGR during the forecast period, as the number of approaches for businesses is growing to strengthen the security of data and ensure compliance with regional data protection laws. The need for more control over data, infrastructure, and security has driven enterprises towards the increased adoption of on-premise solutions. The fears over data privacy and compliance, companies with specific regulatory needs are moving back to on-premise.

By Payment

The digital wallets segment dominated the market and accounted for 32% of revenue share in 2024, owing to their easy-to-use, quick, and secure platform. As staying cashless is the new normal and the number of smartphone users continues to grow, digital wallets allow consumers to make payments in one click with ease. Digital wallets are becoming increasingly popular in several industries, including retail, eCommerce, and mobile applications as end customers are shying away from conventional methods.

The credit and debit cards are projected to hold the fastest CAGR in the embedded payments market due to their large-scale acceptance and merger with several payment platforms. Visa and MC have much more global usage than Diner's Club or AX, and they also offer more security through chip and token technology. The segment is expected to experience rapid growth by 2032, as growing consumer demand for instant, reliable payments continues with increased adoption of contactless payment and card processing technologies fuelling the growth.

For Instance, In May 2024, Visa introduced "Tap to Everything," a service that allows consumers to authenticate identity for online shopping by tapping their card against their mobile device, eliminating the need for manual entry. This feature also supports tap-to-authenticate, tap-to-provision a card, and tap-to-peer-to-peer (P2P) payments, initiating a P2P payment by entering the receiver details and tapping their card against their phone to authenticate and initiate the transfer.

By Industry vertical

The e-commerce segment dominated the market and accounted for a significant revenue share in 2024, a sector that has a higher and growing need for seamless, fast, and secure payment solutions. Consumer trends gravitating towards cashless payments,  the evolution of mobile commerce, and the implementation of innovative payment technologies have all set a fast track for embedded payments solutions to play a pivotal role in e-commerce platforms.

For Instance, in March 2025, Walmart partnered with JPMorgan Chase to accelerate payments for online sellers on Walmart's marketplace. This collaboration enables sellers to manage payments and cash flow through JPMorgan's systems, streamlining financial operations for over 100,000 sellers. 

The healthcare sector is expected to witness the fastest CAGR in the embedded payments industry, due to the increasing demand for better payment solutions among the digitized healthcare system. Including payments in telehealth platforms, health insurance, and patient portals is changing the way patients pay for services.

Regional Landscape

In 2024, North America dominated the market and accounted for 38% of revenue share, owing to the developed digital infrastructure, the extensive penetration of smartphones, and the growing e-commerce ecosystem in the region. The region leads the market, owing to the presence of major payment solution providers, high adoption of digital wallets, and mobile payments. Fintech Innovation North American markets are set to continue leading the pack, driven by easy access to capital, supportive regulatory frameworks, and consumers who respect seamless, secure transactions.

In North America US dominated the market due to the country’s high smartphone penetration, advanced digital infrastructure, and a strong shift toward cashless transactions. The increasing use of mobile wallets, such as Apple Pay and Google Pay, along with the rise of e-commerce, fuels this growth

​According to the Federal Reserve's 2024 "Diary of Consumer Payment Choice," 50% of person-to-person (P2P) payments in the U.S. were made using mobile apps in 2023, highlighting a significant shift toward digital wallets and mobile payment solutions. 

The Asia-Pacific is expected to register the fastest CAGR during the forecast period,  due to increasing implementation of mobile payments, rise in internet access, and the high number of e-commerce transactions. The expanding adoption of digital wallets, cell funds, and cell-first financial solutions in rising markets, particularly China and India, is additionally contributing to gasoline the market growth.

In Asia-Pacific, China dominated the embedded payments market, fuelled by its developed digital infrastructure, government support for cashless initiatives, and the remarkable penetration rate of mobile payment platforms such as Alipay and WeChat Pay. Embedded payments have also been further propelled by the country’s shift to a cashless society, backed by things like the Digital Yuan.

For Instance, in 2024, Ant Group introduced AntChain Station, an all-in-one workstation designed to accelerate blockchain deployment. This device reduces setup time by up to 90%, enabling enterprise clients to implement AntChain within an hour, significantly faster than the previous average of 10 hours. The workstation combines built-in software with a dedicated hardware accelerator, enhancing transaction speed by approximately 30%. ​

Europe's embedded payments market is poised for significant growth, driven by strong consumer demand for seamless, contactless, and mobile payment solutions across the region.

In Europe, the United Kingdom dominated the embedded payments market due to its advanced fintech ecosystem, high mobile payment adoption, and regulatory environment that supports digital transactions. The market’s growth is driven by increasing demand for contactless payments, the rise of mobile wallets, and the growing trend of embedded finance solutions across industries such as retail, e-commerce, and financial services. 

Key Players

The Major Embedded Payments Companies are PayPal, Square, Stripe, Adyen, Worldpay, Alipay, WeChat Pay, Apple Pay, Google Pay, Samsung Pay, and others in the report

Recent Developments

• January 2024: PayPal and Venmo unveiled six new innovations to enhance commerce, including improved QR code capabilities and streamlined business tools. Source: PayPal Newsroom

• July 2024: PayPal introduced a new feature allowing users to pay invoices using its PYUSD stablecoin, facilitating faster and more secure transactions. Source: PayGate Ratings

• May 2024: Stripe announced expanded interoperability with 12 other payment providers, enhancing its compatibility with various platforms. 

• July 2024: Stripe upgraded its billing system to support multiprocessor payments and improved analytics, offering businesses more flexibility.