Adyen and BCG Report Highlights $185 Billion Growth Potential for SaaS Platforms in Embedded Finance

Adyen and BCG Report Highlights $185 Billion Growth Potential for SaaS Platforms in Embedded Finance

(IN BRIEF) A joint report from Adyen and Boston Consulting Group (BCG) reveals a $185 billion market opportunity for Software-as-a-Service (SaaS) platforms through embedded finance, showing a 25% increase since 2022. Driven by favorable interest rates and increased demand from small and medium-sized businesses (SMBs), the market now extends beyond payments to include business accounts, loans, and other financial products. SaaS platforms integrating these offerings could potentially boost their revenues by up to four times. The study highlights strong interest from SMBs, with half indicating a high likelihood of using comprehensive embedded financial services soon. Adyen’s SVP, Blake Breathitt, emphasized the importance of embracing embedded finance to stay competitive, while BCG’s Stefan Dab pointed out the rising demand for integrated financial solutions.

(PRESS RELEASE) AMSTERDAM, 28-Oct-2024 — /EuropaWire/ — A new report by Adyen, a leading financial technology platform, in collaboration with Boston Consulting Group (BCG), has identified a $185 billion market opportunity for embedded finance within Software-as-a-Service (SaaS) platforms. This figure represents a 25% growth since 2022, driven by favorable interest rate conditions and a broader expansion of banking revenue pools. The analysis points to the significant role of embedded finance beyond just payments, marking it as a key growth area for SaaS platforms.

Despite the growing demand, less than 20% of this market has been tapped, highlighting a timely opportunity for platforms to integrate financial products and meet the evolving needs of small and medium-sized businesses (SMBs). Many SMBs, traditionally underserved by conventional banks, are increasingly looking for solutions like business accounts, loans, and issued cards directly integrated within their SaaS tools. The report suggests that platforms adopting these products could see their revenues increase by up to 3-4 times.

Blake Breathitt, SVP of Platforms & Financial Services at Adyen, emphasized, “Embedding financial products offers a dual advantage: SaaS platforms can strengthen user engagement while unlocking new revenue opportunities by catering to the financial needs of SMBs. Our research points to a crucial moment for SaaS platforms to integrate embedded finance, ensuring they remain competitive in a rapidly evolving market.”

The study indicates strong interest from SMBs, with 50% showing a high likelihood of using a full range of embedded financial services in the near future. Stefan Dab, Founder of BCG’s Payments and Fintech practice, added, “We’re seeing growing demand from SMBs for a diverse array of financial services embedded within their SaaS platforms, including loans and current accounts that integrate seamlessly with their business workflows.”

The report also highlights that leading SaaS platforms now derive over 50% of their revenue from embedded payments and finance, positioning these offerings as the next vital growth driver. As competition intensifies, the report advises SaaS platforms to differentiate by incorporating financial services into their product lineup.

Adyen and BCG’s report provides a detailed roadmap for SaaS platforms seeking to capitalize on this opportunity, offering insights on product differentiation, market strategies, and building effective partnerships. The report’s findings are based on research conducted with around 30 leading platforms and 2,000 SMBs across North America, Europe, and Australia, covering sectors like F&B, retail, and hospitality. To read the full report, click here.

About Adyen
Adyen (ADYEN:AMS) is the financial technology platform of choice for leading companies. By providing end-to-end payments capabilities, data-driven insights, and financial products in a single global solution, Adyen helps businesses achieve their ambitions faster. With offices around the world, Adyen works with the likes of Meta, Uber, H&M, eBay, and Microsoft.

About Boston Consulting Group
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact. Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

(1) 2,000 small-and-medium-sized businesses (SMBs) surveyed across eight industries – including Food and Beverage (F&B), Hospitality and Retail – in Europe, North America and Australia.

Media Contact:

press@adyen.com

SOURCE: Adyen NV