(MENAFN- GlobeNewsWire - Nasdaq) Australia's embedded finance market offers opportunities in personalization, multi-vertical expansion, and B2B partnerships. Growth is driven by open banking, real-time payments, and regulatory changes. Fintechs and non-financial platforms can differentiate through APIs, streamlined integrations, and compliance-ready models.

Dublin, Nov. 20, 2025 (GLOBE NEWSWIRE) -- The "Australia 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 Australia is expected to grow by 9.4% on an annual basis to reach US$11.51 billion by 2025. The embedded finance market in the country has experienced robust growth during 2021-2025, achieving a CAGR of 13.4%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 6.6% from 2026 to 2030. By the end of 2030, the embedded finance market is projected to expand from its 2024 value of US$10.52 billion to approximately US$14.86 billion.

Embedded finance in Australia is evolving beyond BNPL into a multi-vertical, API-driven ecosystem shaped by open banking, real-time payments, and regulatory recalibration. Fintechs are adapting to a partnership-led model, while non-financial platforms increasingly see embedded finance as a differentiation strategy. Over the next 2-4 years, Australia's embedded finance market is likely to deepen in personalization, formalize under new compliance norms, and diversify across sectors as APIs and payment rails mature.

Australia's embedded finance landscape is becoming more layered and infrastructure-driven. Competitive intensity is rising not just at the consumer-facing level but also among B2B providers offering modular, compliant financial services to enterprises. Strategic partnerships and regulatory licenses have become key differentiators, and the next phase of competition will center on trusted infrastructure, data integration capabilities, and embedded compliance. Over the next 2-4 years, consolidation, convergence with banking, and infrastructure expansion will reshape the competitive map.
Embedded Finance Use Cases Are Expanding Across Retail, Mobility, and Property Sectors

• Embedded finance in Australia is moving beyond fintechs and banks into traditionally non-financial sectors like retail, mobility, and property services. Buy Now, Pay Later (BNPL) products remain one of the most visible forms of embedded finance, but newer use cases now include embedded lending for SME platforms, insurance products embedded within online travel and mobility platforms, and fractional investment offerings on property and equity platforms.
• Sectoral digitization, consumer expectation for seamless financial experiences, and increasing collaboration between fintechs and industry-specific platforms are fueling this expansion. For example, companies like Market placer and Zip have partnered to embed financing options within retail marketplaces, while PropHero and BrickX integrate investment and fractional property finance features within their digital interfaces.
• This trend is expected to intensify as more non-financial platforms embed financial offerings directly into user journeys. As open banking under the Consumer Data Right (CDR) matures and APIs become standardized, integration costs will decline, accelerating adoption among second-tier platforms and verticals like automotive, real estate, and B2B procurement.

Strategic Fintech-Enterprise Partnerships Are Accelerating Embedded Product Rollouts

• Fintechs in Australia are increasingly embedding their services through white-label partnerships with large enterprises rather than going direct-to-consumer. These collaborations are driving the rapid deployment of embedded finance at scale, especially in credit and payments.
• Regulatory pressure on consumer-facing fintechs, such as ASIC scrutiny of BNPL operators, is prompting fintechs to shift toward B2B2C partnerships. Additionally, corporates are prioritizing embedded finance as a loyalty and engagement lever. Notable examples include Zip's partnership with Qantas Loyalty and Zepto's merchant-embedded payment APIs for retailers and subscription platforms.
• More fintechs are expected to move toward B2B partnerships, embedding their infrastructure within sectors like telecom (e.g., Optus), travel (e.g., Webjet), and utilities. The fintech value proposition will become increasingly infrastructure-centric, reducing direct brand visibility but expanding reach and resilience.

Open Banking via Consumer Data Right (CDR) Is Enabling Deeper Personalization

• Australia's CDR regime is enabling more secure, consent-driven data sharing, allowing embedded finance providers to tailor products to individual user profiles. This is particularly relevant for personal lending, cash flow forecasting, and spend-based loyalty products embedded within apps.
• Over 110 data holders (including major banks) are now accredited under CDR. This data access, combined with maturing fintech stacks, allows embedded finance platforms to offer hyper-personalized experiences. Frollo, an early adopter of open banking APIs, has helped multiple enterprise clients embed financial dashboards and credit tools using consented data.
• As CDR Phase 3 (action initiation) progresses, embedded finance products will increasingly incorporate dynamic credit limits, real-time budgeting tools, and usage-based pricing models. This will deepen user engagement and create regulatory advantages for CDR-compliant players.

Real-Time Payments Infrastructure Is Unlocking New Embedded Finance Use Cases

• The continued rollout and expansion of Australia's New Payments Platform (NPP), especially PayTo, is enabling real-time payment use cases within embedded environments from subscription billing to instant merchant settlements.
• The wide availability of NPP rails and bank adoption of PayTo mandates is reducing friction for recurring and dynamic payments. Zepto and Monoova are among the players embedding real-time payment options into retail and B2B platforms, offering an alternative to card-based payment systems.
• As real-time payment integrations become the norm, embedded finance will increasingly center around dynamic payment experiences such as usage-based billing, just-in-time payments, and cash flow-based credit disbursements. The infrastructure shift will also benefit embedded treasury and B2B finance use cases.

Competitive Intensity Is Rising as Embedded Finance Becomes a Strategic Priority Across Verticals

• The embedded finance space in Australia is shifting from niche fintech-led activity to a broader competitive field involving banks, infrastructure providers, enterprise platforms, and even telcos. The sector is not yet saturated, but competition is intensifying, especially in segments like embedded payments, BNPL, and SME credit.
• Fintechs such as Zepto, Monoova, and FrankieOne offer B2B APIs for payments, onboarding, and compliance. BNPL players like Zip and Afterpay remain active but are undergoing regulatory realignment. Meanwhile, incumbent banks including CBA and NAB are entering embedded use cases through open banking APIs and partnerships.
• As embedded finance gains traction beyond consumer finance into business services and operational platforms, the market will witness more players bundling payments, credit, and identity solutions. This could lead to overlap between fintechs, banks, and SaaS providers, raising the intensity of B2B infrastructure competition.

Zepto, FrankieOne, and Monoova Are Emerging as Key Infrastructure Enablers

• Zepto has positioned itself as a real-time payments enabler using the New Payments Platform (NPP) and PayTo. Its solutions are embedded in subscription platforms and marketplaces. FrankieOne provides onboarding and fraud prevention APIs, embedded by fintechs and digital banks for compliance-heavy flows. Monoova, backed by Moneytech, delivers payment automation APIs, especially in SME and payroll-linked use cases.
• Newer entrants are focusing on modular infrastructure-as-a-service offerings. For example, Shaype (formerly Hay-as-a-Service) allows enterprises to embed accounts and card issuing features. Meanwhile, 10x Banking has partnered with Westpac to offer core banking and embedded service delivery at scale.
• These players are not directly competing with consumer-facing fintechs but are enabling broader adoption of embedded finance among platforms, corporates, and regulated financial institutions. Their infrastructure is shaping the pace and structure of market rollout.

Strategic Partnerships and B2B Integrations Are Defining Competitive Differentiation

• Zip divested parts of its international operations and restructured its local business, while Latitude Group exited some BNPL offerings amid regulatory tightening. There has not been significant M&A among infrastructure providers, but strategic investments (e.g., from Mastercard and Visa in open banking and KYC platforms) indicate future consolidation interest.
• The most competitive edge lies in the ability to offer compliance-ready, API-first solutions that meet both consumer and enterprise use case demands. Those with early partnerships in regulated verticals such as payroll, wealthtech, and utilities are gaining traction faster.

For more information about this report visit

About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Attachment

• Australian Embedded Finance Market

CONTACT: CONTACT: Laura Wood,Senior Press Manager... For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900

MENAFN20112025004107003653ID1110373843