Embedded finance is gaining a considerable uptick across various global markets, driving strong performances for companies active within the space such as OpenPayd.
The company reported 100% growth for 2023, its second consecutive year in a row. This led to it declaring profitability, driven by annual recurring revenue of €40m. This performance has been largely driven by its partnerships with some prominent brands.
OpenPayd’s current client roster includes e-commerce site eToro, cryptocurrency platform OKX and trading and investment platform Libertex. The firm’s revenues resulted heavily from annual volume processing of €50m as a result of its various partnership activities.
According to the firm, its success is a result of the growing appetite for embedded finance products and services across a number of sectors. Embedded finance is when financial services are incorporated into traditionally non-financial apps and platforms, such as the three companies mentioned above.
Iana Dimitrova, CEO of OpenPayd, said: “Embedded finance is revolutionising how businesses interact with customers, by providing seamless financial services through their platforms.
“At OpenPayd, we are dedicated to empowering our partners with the infrastructure they need to innovate and thrive in this dynamic landscape.”
“Our significant growth reflects the increasing demand for integrated financial solutions and our commitment to delivering unparalleled value and support to our clients. The business, now in a profitable position, is ready to reach new heights in this financial year.”
OpenPayd is confident in its continued growth prospects, based on its projections that the global embedded finance market will continue to grow. The company is not the only observer to note an upsurge in demand for these services, it is important to note.
For example, Juniper Research published a report earlier this year predicting significant growth for embedded finance over the next four years. The report outlined revenue expectations of $228.6bn by 2028, which if proven true would represent a growth rate of 148% on the $92.2bn expected in 2024.
“B2B embedded financial services have strong potential,” said Matt Purnell, Research Author. “Comprehensive product suites are being deployed due to the utilisation of newly developed technologies.”
Embedded finance has also been recognised by traditional banks, including JP Morgan Chase, Goldman Sachs and NatWest, which have respectively partnered with Gusto, Modern Treasury and Vodeno.
Making its own projections, OpenPayd expects market revenues in the UK and Europe to reach €600bn across a global addressable market of over €7trn, based on its research suggesting that three quarters of UK and European businesses will launch embedded finance over the next five years.
