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According to the latest research, the global Banking-as-a-Service (BaaS) market size was valued at USD 5351.25 million in 2022 and is expected to expand at a CAGR of 13.29% during the forecast period, reaching USD 11313.07 million by 2028.
Banking as a service (BaaS) is an end-to-end process ensuring the overall execution of a financial service provided over the web. Such a digital banking service is available on demand and is carried out within a se t time-frame.
Banking-as-a-Service (BaaS) Market Drivers
For banks, they have business needs to develop new customers. However, the cost for banks to fully develop all end-to-end banking digital services is relatively high. This is especially obvious for small and medium banks. Therefore, it is a better choice to cooperate with the BaaS platform. On the one hand, it can expand the business, and on the other hand, it can effectively reduce the cost of expanding the business.
For users, convenient end-to-end digital banking services can effectively improve the convenience of customers in various financial use scenarios and can effectively save users' time and cost. Therefore, BaaS service is a trend in the development of the banking industry in the future, and the needs of users will promote business adjustments and upgrades of banking service providers, and ultimately promote the development of the BaaS industry.
Banking-as-a-Service (BaaS) Market Challenges
The success of BaaS depends to a large extent on how the business capabilities and operational processes that drive them are open as APIs. A good API strategy is the cornerstone of achieving this. APIs need to adopt the best design to ensure that their use and integration is not a cumbersome process. An appropriate middleware platform or API gateway is needed to overcome the architectural limitations caused by the legacy system.
BaaS is a new banking service model that has emerged in recent years. The overall development of the industry is still in the growth stage. Therefore, how to ensure financial security while ensuring rapid growth will become one of the important challenges faced by practitioners. The management of financial security risks is the basis for ensuring the orderly operation of society. Therefore, while developing BaaS business, it is equally important to improve banking business risk management.
Region Overview:
North America had the highest growth rate of all regions.
Company Overview:
The top three companies are PayPal, Sqaure and Gemalto with the revenue market share of 29.50%, 13.06% and 9.47% in 2020.
PayPal
Fueled by a fundamental belief that having access to financial services creates opportunity, PayPal is committed to democratizing financial services and empowering people and businesses to join and thrive in the global economy.
Square, Inc.
Square, Inc. is an American financial service, merchant services aggregator, and mobile payment company based in San Francisco, California. The company markets software and hardware payments products and has expanded into small business services.
Segmentation Overview:
Among different product types, API-based Bank-as-a-Service segment is anticipated to contribute the largest market share in 2027.
Application Overview:
By application, the Banking segment occupied the biggest share from 2017 to 2022.
This report elaborates on the market size, market characteristics, and market growth of the Banking-as-a-Service (BaaS) industry between the year 2018 to 2028, and breaks down according to the product type, downstream application, and consumption area of Banking-as-a-Service (BaaS). The report also introduces players in the industry from the perspective of the value chain and looks into the leading companies.
Key Points this Global Banking-as-a-Service (BaaS) Market Report Include:
Market Size Estimates: Banking-as-a-Service (BaaS) market size estimation in terms of revenue and sales from 2018-2028
Market Dynamic and Trends: Banking-as-a-Service (BaaS) market drivers, restraints, opportunities, and challenges
Macro-economy and Regional Conflict: Influence of global inflation and Russia & Ukraine War on the Banking-as-a-Service (BaaS) market
Segment Market Analysis: Banking-as-a-Service (BaaS) market revenue and sales by type and by application from 2018-2028
Regional Market Analysis: Banking-as-a-Service (BaaS) market situations and prospects in major and top regions and countries
Banking-as-a-Service (BaaS) Market
Banking-as-a-Service (BaaS) Industry Chain: Banking-as-a-Service (BaaS) market raw materials & suppliers, manufacturing process, distributors by region, downstream customers
Banking-as-a-Service (BaaS) Industry News, Policies by regions
Banking-as-a-Service (BaaS) Industry Porters Five Forces Analysis
Key players in the global Banking-as-a-Service (BaaS) market are covered in Chapter 2:
Sqaure
Invoicera
Gemalto
Finexra
Galileo
Ohpen
OANDA
ThoughtMachine
PayPal
Prosper
GoCardless
SolarisBank
Fidor Bank
Mambu
Dwolla
Moven
In Chapter 6 and Chapter 9, on the basis of types, the Banking-as-a-Service (BaaS) market from 2018 to 2028 is primarily split into:
API-based Bank-as-a-Service
Cloud-based Bank-as-a-Service
In Chapter 7 and Chapter 10, on the basis of applications, the Banking-as-a-Service (BaaS) market from 2018 to 2028 covers:
Banking
Online Banks
Geographically, the detailed analysis of consumption, revenue, market share and growth rate of the following regions from 2018 to 2028 are covered in Chapter 8 and Chapter 11:
United States
Europe
China
Japan
India
Southeast Asia
Latin America
Middle East and Africa
Others
In summary, this report relies on sources from both primary and secondary, combines comprehensive quantitative analysis with detailed qualitative analysis, and pictures the market from a macro overview to micro granular segment aspects. Whatever your role in this industry value chain is, you should benefit from this report with no doubt.
Chapter Outline
This report consists of 12 chapters. Below is a brief guideline to help you quickly grasp the main contents of each chapter:
Chapter 1 first introduces the product overview, market scope, product classification, application, and regional division, and then summarizes the global Banking-as-a-Service (BaaS) market size in terms of revenue, sales volume, and average price.
Chapter 2 analyzes the main companies in the Banking-as-a-Service (BaaS) industry, including their main businesses, products/services, sales, prices, revenue, gross profit margin, and the latest developments/updates.
Chapter 3 is an analysis of the competitive environment of Banking-as-a-Service (BaaS) market participants. This mainly includes the revenue, sales, market share, and average price of the top players, along with the market concentration ratio in 2022 and the players' M&A and expansion in recent years.
Chapter 4 is an analysis of the Banking-as-a-Service (BaaS) industrial chain, including raw material analysis, manufacturing cost structure, distributors, and major downstream buyers.
Chapter 5 focuses on Banking-as-a-Service (BaaS) market dynamics and marketing strategy analysis, which include opportunities, challenges, industry development trends under inflation, industry news and policies analyzed by region, Porter's Five Forces analysis, as well as direct and indirect marketing, and the development trends of marketing channels.
Chapters 6-8 have segmented the Banking-as-a-Service (BaaS) market by type, application, and region, with a focus on sales and value from 2018 to 2023 from both vertical and horizontal perspectives.
Chapters 9-11 provide detailed Banking-as-a-Service (BaaS) market forecast data for 2023-2028, broken down by type and application, region, and major countries to help understand future growth trends.
Chapter 12 concludes with an explanation of the data sources and research methods. Verify and analyze through preliminary research to obtain final quantitative and qualitative data.
2022
Banking as a service (BaaS) is an end-to-end process ensuring the overall execution of a financial service provided over the web. Such a digital banking service is available on demand and is carried out within a se t time-frame.
Banking-as-a-Service (BaaS) Market Drivers
For banks, they have business needs to develop new customers. However, the cost for banks to fully develop all end-to-end banking digital services is relatively high. This is especially obvious for small and medium banks. Therefore, it is a better choice to cooperate with the BaaS platform. On the one hand, it can expand the business, and on the other hand, it can effectively reduce the cost of expanding the business.
For users, convenient end-to-end digital banking services can effectively improve the convenience of customers in various financial use scenarios and can effectively save users' time and cost. Therefore, BaaS service is a trend in the development of the banking industry in the future, and the needs of users will promote business adjustments and upgrades of banking service providers, and ultimately promote the development of the BaaS industry.
Banking-as-a-Service (BaaS) Market Challenges
The success of BaaS depends to a large extent on how the business capabilities and operational processes that drive them are open as APIs. A good API strategy is the cornerstone of achieving this. APIs need to adopt the best design to ensure that their use and integration is not a cumbersome process. An appropriate middleware platform or API gateway is needed to overcome the architectural limitations caused by the legacy system.
BaaS is a new banking service model that has emerged in recent years. The overall development of the industry is still in the growth stage. Therefore, how to ensure financial security while ensuring rapid growth will become one of the important challenges faced by practitioners. The management of financial security risks is the basis for ensuring the orderly operation of society. Therefore, while developing BaaS business, it is equally important to improve banking business risk management.
Region Overview:
North America had the highest growth rate of all regions.
Company Overview:
The top three companies are PayPal, Sqaure and Gemalto with the revenue market share of 29.50%, 13.06% and 9.47% in 2020.
PayPal
Fueled by a fundamental belief that having access to financial services creates opportunity, PayPal is committed to democratizing financial services and empowering people and businesses to join and thrive in the global economy.
Square, Inc.
Square, Inc. is an American financial service, merchant services aggregator, and mobile payment company based in San Francisco, California. The company markets software and hardware payments products and has expanded into small business services.
Segmentation Overview:
Among different product types, API-based Bank-as-a-Service segment is anticipated to contribute the largest market share in 2027.
Application Overview:
By application, the Banking segment occupied the biggest share from 2017 to 2022.
This report elaborates on the market size, market characteristics, and market growth of the Banking-as-a-Service (BaaS) industry between the year 2018 to 2028, and breaks down according to the product type, downstream application, and consumption area of Banking-as-a-Service (BaaS). The report also introduces players in the industry from the perspective of the value chain and looks into the leading companies.
Key Points this Global Banking-as-a-Service (BaaS) Market Report Include:
Market Size Estimates: Banking-as-a-Service (BaaS) market size estimation in terms of revenue and sales from 2018-2028
Market Dynamic and Trends: Banking-as-a-Service (BaaS) market drivers, restraints, opportunities, and challenges
Macro-economy and Regional Conflict: Influence of global inflation and Russia & Ukraine War on the Banking-as-a-Service (BaaS) market
Segment Market Analysis: Banking-as-a-Service (BaaS) market revenue and sales by type and by application from 2018-2028
Regional Market Analysis: Banking-as-a-Service (BaaS) market situations and prospects in major and top regions and countries
Banking-as-a-Service (BaaS) Market
Competitive Landscape
and Major Players: Analysis of 10-15 leading market players, sales, price, revenue, gross, gross margin, product/service profile and recent development/updates, etc.Banking-as-a-Service (BaaS) Industry Chain: Banking-as-a-Service (BaaS) market raw materials & suppliers, manufacturing process, distributors by region, downstream customers
Banking-as-a-Service (BaaS) Industry News, Policies by regions
Banking-as-a-Service (BaaS) Industry Porters Five Forces Analysis
Key players in the global Banking-as-a-Service (BaaS) market are covered in Chapter 2:
Sqaure
Invoicera
Gemalto
Finexra
Galileo
Ohpen
OANDA
ThoughtMachine
PayPal
Prosper
GoCardless
SolarisBank
Fidor Bank
Mambu
Dwolla
Moven
In Chapter 6 and Chapter 9, on the basis of types, the Banking-as-a-Service (BaaS) market from 2018 to 2028 is primarily split into:
API-based Bank-as-a-Service
Cloud-based Bank-as-a-Service
In Chapter 7 and Chapter 10, on the basis of applications, the Banking-as-a-Service (BaaS) market from 2018 to 2028 covers:
Banking
Online Banks
Geographically, the detailed analysis of consumption, revenue, market share and growth rate of the following regions from 2018 to 2028 are covered in Chapter 8 and Chapter 11:
United States
Europe
China
Japan
India
Southeast Asia
Latin America
Middle East and Africa
Others
In summary, this report relies on sources from both primary and secondary, combines comprehensive quantitative analysis with detailed qualitative analysis, and pictures the market from a macro overview to micro granular segment aspects. Whatever your role in this industry value chain is, you should benefit from this report with no doubt.
Chapter Outline
This report consists of 12 chapters. Below is a brief guideline to help you quickly grasp the main contents of each chapter:
Chapter 1 first introduces the product overview, market scope, product classification, application, and regional division, and then summarizes the global Banking-as-a-Service (BaaS) market size in terms of revenue, sales volume, and average price.
Chapter 2 analyzes the main companies in the Banking-as-a-Service (BaaS) industry, including their main businesses, products/services, sales, prices, revenue, gross profit margin, and the latest developments/updates.
Chapter 3 is an analysis of the competitive environment of Banking-as-a-Service (BaaS) market participants. This mainly includes the revenue, sales, market share, and average price of the top players, along with the market concentration ratio in 2022 and the players' M&A and expansion in recent years.
Chapter 4 is an analysis of the Banking-as-a-Service (BaaS) industrial chain, including raw material analysis, manufacturing cost structure, distributors, and major downstream buyers.
Chapter 5 focuses on Banking-as-a-Service (BaaS) market dynamics and marketing strategy analysis, which include opportunities, challenges, industry development trends under inflation, industry news and policies analyzed by region, Porter's Five Forces analysis, as well as direct and indirect marketing, and the development trends of marketing channels.
Chapters 6-8 have segmented the Banking-as-a-Service (BaaS) market by type, application, and region, with a focus on sales and value from 2018 to 2023 from both vertical and horizontal perspectives.
Chapters 9-11 provide detailed Banking-as-a-Service (BaaS) market forecast data for 2023-2028, broken down by type and application, region, and major countries to help understand future growth trends.
Chapter 12 concludes with an explanation of the data sources and research methods. Verify and analyze through preliminary research to obtain final quantitative and qualitative data.
Years considered for this report:
Historical Years:
2018-2022Base Year:
2022Estimated Year:
2023Forecast Period:
2023-2028Frequently Asked Questions
This market study covers the global and regional market with an in-depth analysis of the overall growth prospects in the market. Furthermore, it sheds light on the comprehensive competitive landscape of the global market. The report further offers a dashboard overview of leading companies encompassing their successful marketing strategies, market contribution, recent developments in both historic and present contexts.
- By product type
- By End User/Applications
- By Technology
- By Region
The report provides a detailed evaluation of the market by highlighting information on different aspects which include drivers, restraints, opportunities, and threats. This information can help stakeholders to make appropriate decisions before investing.
