PUBLISHER: The Business Research Company | PRODUCT CODE: 1669625
PUBLISHER: The Business Research Company | PRODUCT CODE: 1669625
Fintech as a Service (FaaS) is a business model that allows organizations to delegate their financial technology (fintech) services to a third party. This approach empowers businesses to utilize fintech services in a flexible and cost-effective manner, enhancing their financial operations.
The primary categories of fintech as a service include banking, payment, insurance, investment, lending, and others. Banking encompasses commercial enterprises handling money, credit, and various financial affairs for both individuals and corporate entities. These services leverage technologies such as artificial intelligence (AI), blockchain, robotic process automation (RPA), application programming interfaces (API), among others. They find applications in various areas such as fraud monitoring, KYC (Know Your Account) verification, compliance and regulatory support, and more. The end-users of fintech as a service span across banks, financial institutions, insurance companies, and other relevant entities.
The fintech as a service market research report is one of a series of new reports from The Business Research Company that provides fintech as a service market statistics, including fintech as a service industry global market size, regional shares, competitors with a fintech as a service market share, detailed fintech as a service market segments, market trends, and opportunities, and any further data you may need to thrive in the fintech as a service industry. This fintech as a service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The fintech as a service (FaaS) market size has grown rapidly in recent years. It will grow from $378.33 billion in 2024 to $441.47 billion in 2025 at a compound annual growth rate (CAGR) of 16.7%. The growth in the historic period can be attributed to digital transformation, mobile and internet penetration, regulatory changes, rise of APIS, demand for efficiency
The fintech as a service (FaaS) market size is expected to see rapid growth in the next few years. It will grow to $906.64 billion in 2029 at a compound annual growth rate (CAGR) of 19.7%. The growth in the forecast period can be attributed to ai and automation, open banking expansion, blockchain and cryptocurrency, globalization of services, data security and privacy. Major trends in the forecast period include embedded finance, AP ecosystem growth, RegTech and compliance solutions, evolving payment solutions, sustainable finance focus.
The anticipated surge in the shift towards digital banking and payments is poised to drive the growth of the fintech-as-a-service market. Digital banking, involving transactions conducted through digital platforms, is eliminating paper-based processes, and fintech as a Service (FaaS) is instrumental in this shift. FaaS contributes significantly to digital banking by offering mobile applications, web-based platforms, APIs, and sophisticated applications leveraging artificial intelligence and machine learning to provide financial advice. Moreover, FaaS provides digital banking solutions that empower companies to furnish their customers with online banking services. For example, as of July 2023, an estimated 93% of Brits utilized online banking in 2022, with an additional 5.3 million (10%) intending to acquire a digital-only bank account in 2023. Projections indicate that by 2028, digital-only bank account holders in the UK will reach 22.6 million (43%). Consequently, the upsurge in the adoption of digital banking and payments is steering the growth of the fintech-as-a-service market.
The increasing concerns regarding security and privacy are expected to drive the growth of the fintech-as-a-service market in the future. Security and privacy involve measures and safeguards that protect information and ensure confidentiality, integrity, and availability. In the rapidly expanding Fintech-as-a-Service market, strong cybersecurity protocols and privacy frameworks are crucial for addressing these concerns, building trust, and ensuring the secure management of financial data in digital transactions and services. For instance, in April 2024, data published by the Department for Science, Innovation, and Technology, a UK-based ministerial department, revealed that around 22% of businesses and 14% of charities reported experiencing cybercrime in the past year, with those figures rising to 45% for medium-sized businesses, 58% for large businesses, and 37% for high-income charities. Therefore, the growing concerns about security and privacy are driving the growth of the fintech-as-a-service market.
Technological innovations have emerged as a prominent trend in the fintech-as-a-service market. Major companies in this sector are directing their efforts toward developing technologically advanced solutions to bolster their market positions. An illustrative example is the April 2023 launch of a fintech innovation platform by Valley National Bank, a regional bank holding company based in the US. This platform, powered by NayaOne, facilitates a straightforward and user-friendly onboarding process. Integrated with the offerings of various financial businesses, it provides a toolkit for generating and utilizing synthetic data. This capability allows Valley and its fintech partners to efficiently test and implement novel solutions within a controlled and secure environment.
Major players in the fintech-as-a-service market are forming partnerships to introduce a global fintech-as-a-service solution, simplifying the integration of financial services into business operations. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefits. An instance of this approach is the collaboration between PayPugs, a US-based financial services company, and Muniy, a UK-based neobank. Through this partnership, a comprehensive global fintech-as-a-service solution has been introduced, enabling businesses to seamlessly integrate diverse financial services, including payments, remittances, and foreign exchange. By combining PayPugs' expertise in online payments with Muniy's proficiency in personal finance, the collaboration aims to enhance operational efficiency, reduce costs, and meet the growing demand for streamlined financial services, thereby contributing significantly to the expansion of the fintech-as-a-service market.
In March 2023, TD Bank Group, a Canada-based banking and financial services business, completed the acquisition of Cowen Inc. for an undisclosed amount. This strategic move strengthens TD Securities' long-term growth strategy in the United States, expanding its current operations with complementary products and services. Cowen Inc., a US-based fintech company, specializes in equity and debt financing, investment banking, and other financial-related services.
Major companies operating in the fintech as a service (FaaS) market include Stripe Inc., Rapyd Financial Network Ltd., Visa Inc., Mastercard Incorporated, Fiserv Inc., Block Inc., Fidelity National Information Services Inc., Global Payments Inc., NCR Corporation, Broadridge Financial Solutions, Worldline SA, Diebold Nixdorf Incorporated, Coinbase Global Inc, WEX Inc., Jack Henry and Associates Inc., Chime Financial Inc., Finastra, Green Dot Corporation, Envestnet Inc., Adyen NV, Temenos AG, Revolut Ltd., Marqeta Inc., Airwallex Pty Ltd., Plaid Inc., Finix Payments Inc., Square Capital LLC, Dwolla Inc., Synctera Inc., Solid Financial Technologies Inc.
North America was the largest region in the fintech as a service market in 2024. The regions covered in the fintech as a service (faas) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the fintech as a service (faas) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The fintech as a service market includes revenues earned by financial services such as white-label E-Wallet platforms, card acceptance, payment acceptance, payouts, and remittances. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Fintech as a Service (FaaS) Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on fintech as a service (faas) market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for fintech as a service (faas) ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The fintech as a service (faas) market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.