The Embedded Lending Opportunity: Global State of Play

Embedded lending is growing in popularity around the world. It promises convenient, streamlined access to financing for specific expenses from within merchant, business and other platforms. This proves impactful for individuals and microbusinesses and small businesses (MSBs) that want to align their cash flow and expenses.

Across six major world markets, 15% of consumers and 18% of MSBs have recently used this type of lending. We find greater adoption in some countries, however. In the U.S., 17% of consumers have recently taken advantage of embedded lending, for example. In India, 37% of MSBs have used it.

However, users widely experience friction that detracts from their experience. The biggest problem area is the application process, with many consumers and MSBs that recently used this lending reporting issues. Lenders that address these issues will reach and retain many more customers.

“The Embedded Lending Opportunity: Global State of Play,” a PYMNTS Intelligence report commissioned by Visa, explores the state of play for embedded lending across six major economies, examining both the consumer and MSB market segments. The report draws on a 360-degree study of lenders and end users, conducted between Jan. 13 and March 15.

Inside “The Embedded Lending Opportunity: Global State of Play”:

• What embedded lending is and how it differs from traditional products
• How the markets of six major economies compare
• The share of consumers using this type of lending for essential and discretionary purchases
• The share of MSBs using this lending for ongoing costs and growth opportunities
• The pain points consumers and MSBs experience when using this type of lending
• Which consumers and businesses are likely to switch providers to access it
• Which consumers and businesses are more likely to use it
• The obstacles that lenders face in rolling out lending products

This report includes crucial information for lenders looking to become market leaders in embedded lending. Download the report to learn more about what’s next.