(MENAFN- GlobeNewsWire - Nasdaq) The embedded finance market in Saudi Arabia is set for continuous growth, driven by Vision 2030 goals, robust digital transformation, and regulatory support for Open Banking. Opportunities exist in diversifying sectors like credit, insurance, and wealth, with telecom and retail ecosystems being key enablers.

Dublin, Oct. 16, 2025 (GLOBE NEWSWIRE) -- The "Saudi Arabia Embedded Finance Market Size & Forecast by Value and Volume Across 100+ KPIs by Business Models, Distribution Models, End-Use Sectors, and Key Verticals (Payments, Lending, Insurance, Banking, Wealth) - Databook Q4 2025 Update" report has been added to ResearchAndMarkets's offering.
The embedded finance market in Saudi Arabia is expected to grow by 12.6% on an annual basis to reach US$20.10 billion by 2025. Saudi Arabia's embedded finance market has experienced robust growth during 2021-2025, achieving a CAGR of 17.7%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 8.9% from 2026 to 2030. By the end of 2030, the embedded finance market is projected to expand from its 2024 value of US$17.85 billion to approximately US$28.21 billion.

Key Trends and Drivers in Saudi Arabia's Embedded Finance

The Saudi embedded finance sector is diversifying beyond payments to include credit, insurance, and wealth. Vision 2030 and Open Banking policies are significant catalysts, fostering financial integration across telecom-retail ecosystems. Embedded finance is expected to grow across various sectors driven by regulatory advancements and user demand for convenient financial services.

Expansion of Embedded Payments via E-commerce and Digital Ecosystem Integrations

• Embedded payment solutions are prevalent across digital commerce platforms like Careem, Noon, and government platforms. As Saudi aims for a 70% non-cash economy by 2025, e-wallets like STC Pay and integration initiatives are gaining momentum.
• Seamless payment integration is expected across consumer interactions, particularly in e-commerce and utilities, with banks transitioning to service enablers providing APIs to fintech partners.
• Embedded payments will likely become standard, with white-label wallet solutions and Payment Facilitator (PayFac) models spreading among mid-sized enterprises.

Growth of Embedded Lending Through BNPL and Merchant Financing

• BNPL offerings by Tamara and Tabby, and merchant-integrated lending are rising. Partnerships with online merchants at checkout points emphasize this growth.
• An active mobile-driven population is boosting demand for embedded credit. Regulatory advancements and strategic partnerships are overcoming traditional credit barriers.
• Embedded lending will diversify into sectors such as healthcare and travel, with emerging integrations in financial processing platforms.

Role of Telecom and Retail Ecosystems in Embedded Finance

• Large telecom and retail firms like STC and Carrefour are tapping into financial services, leveraging customer engagement and proprietary data without full banking capabilities.
• With digital banking licenses, such as those given to STC Bank, consumer trust and engagement are increasing in these platforms' financial offerings.

Open Banking Boosting API-Driven Embedded Finance

• The Open Banking Framework by SAMA allows fintech access to bank data, encouraging API-based models in finance, including budgeting and risk assessment.
• This regulatory step enables banks to adopt Banking-as-a-Service (BaaS) models, creating a fragmented yet unified finance ecosystem through data portability and user consent.

Emergence of Embedded Insurance and Wealth Products

• Platforms like Mrsool offer micro-insurance and investment options, reflecting growing diversification in embedded finance beyond payments.
• Regulation focused on freelance workforce protection is fostering these embedded offerings.

Saudi Arabia's Competitive Embedded Finance Landscape

The country's market is dominated by ecosystem-led platforms, fintechs, and API infrastructure providers, driven by clarity around regulations like BNPL and Open Banking.

Competitive Intensity in Payments, BNPL, and API Sectors

• Competition in Saudi Arabia is intensifying in the embedded finance sector. Non-banks like STC and Careem are becoming significant financial access points.
• Platforms already lead user engagement, making embedded offerings easier to scale compared to standalone products.

Local Fintechs Leading Core Use Cases

• Local fintechs such as Tamara, STC Pay, and Lean Technologies are central to growth, while international players like Amazon Payment Services are embedding across sectors.
• Platforms across food delivery, ride-hailing, and groceries are not just distributors but enablers of financial experiences.

Regulatory Licensing and Open Banking Redefining Competition

• Mandatory regulatory licenses ensure compliance and foster trust, allowing for the expansion of capital into secure entities.
• Anticipated licensing expansions will broaden the market scope, particularly in embedded credit, insurance, and remittances.

Shifting Toward Infrastructure-Led Financial Models

• The transition to modular, infrastructure-led models is underway, with platforms offering niche services without full-stack capabilities.
• Major ecosystems are pursuing super-app strategies to marry embedded finance with daily-use services.

This report provides data-driven insights into Saudi Arabia's embedded finance industry, spanning payments, lending, insurance, banking, and wealth management. It evaluates over 100 KPIs, providing a comprehensive view of the market size, operational efficiency, risk, customer behavior, and user experience.

Reasons to buy

• Comprehensive KPI Coverage: Access over 100 key performance indicators (KPIs), including transaction value, transaction volume, revenue, and average transaction size.
• Complete Vertical Coverage: Structured datasets across all five embedded finance verticals - payments, lending, insurance, banking, and investments & wealth.
• Granular Market Segmentation: Detailed data by business models (platform-based, enabler, regulatory-entity), distribution models (own vs. third-party platforms), and product types.
• Sector-Level Data Tracking: Coverage across B2C end-use markets such as e-commerce, retail, healthcare, travel & hospitality, utilities, automotive, education, gig economy, and others.
• Operational & Performance Metrics: Provides data on efficiency, quality & risk, monetization, customer behavior, and user experience indicators for a rounded view of market performance.

Key Attributes:

Report Attribute	Details
No. of Pages	230
Forecast Period	2026 - 2030
Estimated Market Value (USD) in 2026	$20.1 Billion
Forecasted Market Value (USD) by 2030	$28.21 Billion
Compound Annual Growth Rate	8.9%
Regions Covered	Saudi Arabia

Report Scope
This report provides in-depth, data-centric analysis of the embedded finance market in Saudi Arabia, with exclusive coverage of B2C transactions and adoption metrics.

Below is a summary of key market segments:
Saudi Arabia Embedded Finance Market Size and Growth Dynamics

• Total Transaction Value
• Number of Transactions
• Average Value per Transaction

Saudi Arabia Embedded Finance Financial Performance Indicators

• Total Revenue
• Average Revenue per Transaction / Product

Saudi Arabia Embedded Finance Key Metrics

• Operational Efficiency Metrics: Transaction Success Rate, Automation Rate (Instant Decision %), Average Turnaround / Processing Time
• Quality & Risk Metrics: Fraud Rate, Error Rate
• Customer Behavior Metrics: Repeat Borrowing Rate, Customer Retention Rate, Churn Rate, Conversion Rate, Abandonment Rate, Cross-Sell / Upsell Rate
• User Experience Metrics: Average Transaction Speed, Average Order / Loan / Policy / Investment Size

Saudi Arabia Embedded Payments Market Size and Growth Dynamics

• Total Payment Value (TPV) and Growth Outlook
• Number of Transactions and Usage Trends
• Average Revenue per Transaction

Saudi Arabia Embedded Payments Key Metrics

• Transaction Metrics: Transaction Success Rate, Repeat Usage Rate
• Operational Efficiency Metrics: Chargeback Rate, Fraud Rate, Dispute / Resolution Rate
• Conversion & Retention Metrics: Conversion Rate, Abandonment Rate, Customer Retention Rate
• User Experience Metrics: Average Transaction Speed, Error Rate

Saudi Arabia Embedded Payments Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

Saudi Arabia Embedded Payments Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Saudi Arabia Embedded Payments Market Segmentation by End-Use Markets

• E-commerce & Retail
• Digital Products & Services
• Travel & Hospitality
• Leisure & Entertainment
• Health & Wellness
• Utility Bill Payments
• Other Sectors

Saudi Arabia Embedded Lending Market Size and Growth Dynamics

• Loan Disbursement Value
• Number of Loans Issued
• Average Loan Size

Saudi Arabia Embedded Lending Key Metrics

• Credit Quality & Risk Metrics: Delinquency Rate (30/60/90 Days), Approval Rate, Default Rate, Loss Given Default (LGD)
• Monetization & Unit Economics Metrics: Interest Revenue per Loan
• Adoption & Usage Metrics: Repeat Borrowing Rate
• Operational & Platform Efficiency Metrics: Loan Origination Time (TAT), Automation Rate (Instant Decision %)

Saudi Arabia Embedded Lending Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

Saudi Arabia Embedded Lending Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Saudi Arabia Embedded Lending Market Segmentation by Product Types

• Buy Now, Pay Later (BNPL)
• Point-of-Sale (POS) Lending
• Personal Loans
• Gig Worker Income Advances
• Other Loan Types

Saudi Arabia Embedded Lending Market Segmentation by End-Use Markets

• E-commerce & Retail
• Gig Economy
• Travel & Hospitality
• Healthcare
• Education & EdTech
• Automotive & Mobility
• Other Sectors

Saudi Arabia Embedded Insurance Market Size and Premium Dynamics

• Gross Written Premium (GWP)
• Number of Policies Issued
• Average Premium per Policy

Saudi Arabia Embedded Insurance Key Metrics

• Policy & Premium Metrics: Renewal Rate
• Claims & Risk Performance Metrics: Claims Ratio (Loss Ratio), Claim Frequency, Claim Settlement Time, Fraud Rate
• Platform Monetization Metrics: Embedded Insurance Revenue per User (RIU)
• Distribution & Conversion Metrics: Attachment Rate, Quote-to-Bind Conversion Rate, Cross-Sell / Upsell Rate

Saudi Arabia Embedded Insurance Market Segmentation by Policy Type

• Life Insurance
• Non-Life Insurance (Motor Vehicle, Home/Property, Accident & Health, Others)
• Motor Vehicle
• Home/Property
• Accident & Health

Saudi Arabia Embedded Insurance Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

Saudi Arabia Embedded Insurance Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Saudi Arabia Embedded Insurance Market Segmentation by End-Use Markets

• E-commerce & Retail
• Travel & Hospitality
• Automotive & Mobility
• Healthcare
• Other Sectors

Saudi Arabia Embedded Banking Market Size and Account Dynamics

• Total Deposits / Inflows
• Account Fee Revenue

Saudi Arabia Embedded Banking Key Metrics

• Account Metrics: Account Churn Rate
• Risk & Compliance Metrics: Fraudulent Transaction Rate

Saudi Arabia Embedded Banking Distribution by End-Use Markets

• Gig & Freelance Platforms
• E-commerce & Marketplaces
• Fintech Apps & Neobanks
• Other Platforms

Saudi Arabia Embedded Investments & Wealth Market Size and User Dynamics

• Total Assets Under Management (AUM)
• Number of Investment Transactions
• Average Investment per User

Saudi Arabia Embedded Investments & Wealth Key Metrics

• Returns & Performance Metrics: Annualized Portfolio Return
• Retention Metrics: Account Churn Rate

Saudi Arabia Embedded Investments & Wealth Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

Saudi Arabia Embedded Investments & Wealth Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

Saudi Arabia Embedded Investments & Wealth Market Segmentation by End-Use Markets

• Fintech & Neobank Apps
• E-commerce & Super Apps
• Gig & Freelancer Platforms
• Other Platforms

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• Saudi Arabian Embedded Finance Market

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