Home Finance & Fintech Fintech as a Service (FaaS) Market to Reach $676.9 Billion by 2028

Fintech as a Service (FaaS) Market to Reach $676.9 Billion by 2028

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With increasing acceptance by traditional financial institutions, service expansion, integration of AI and automation, emphasis on data analytics, global expansion, and improved security and compliance, the future of the Fintech as a Service (FaaS) business looks promising. These trends indicate that FaaS will continue to grow and thrive as the financial services sector progresses.

Promising Future and Growth Prospects for Fintech as a Service (FaaS) Market

According to a recent report by MarketsandMarkets™, the Fintech as a Service (FaaS) Market is expected to witness significant growth, projected to rise from USD 310.5 billion in 2023 to USD 676.9 billion by 2028, with a compound annual growth rate of 16.9% during the forecast period. The growth of the FaaS market is driven by factors such as the emergence of cloud computing technology, which enables operational flexibility and scalability for businesses, as well as the increasing market demand for efficient compliance and regulatory solutions.

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Here are the key details from the report:

  • Market size available for years: 2017-2028
  • Base year considered: 2022
  • Forecast period: 2023–2028
  • Forecast units: Value (USD Billion)
  • Segments Covered: Type, Technology, Application, End User, and Regions
  • Geographies covered: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America
  • Major vendors in the global FaaS market include PayPal, Mastercard, Fiserv, Block, Rapyd, Envestnet, Upstart, Solid Financial Technologies, and more.

Dominance of Payment Segment in the FaaS Market

Based on the FaaS market analysis, the Payment segment is expected to hold the largest market share during the forecast period. Payments are crucial for financial transactions, and businesses and individuals rely on payment capabilities. The payment segment encompasses various services such as payment processing, digital wallets, peer-to-peer transfers, and mobile payments. The growth of e-commerce and the digitization of financial transactions have fueled the demand for payment services. Fintech companies have introduced innovative payment solutions that challenge traditional methods, offering improved user experiences, faster transactions, lower costs, and enhanced security. Payment services have a global reach, allowing FaaS providers to cater to customers worldwide and expand their market size and revenue potential.

Growing Market Size of Compliance & Regulatory Support in the FaaS Industry

In terms of application, Compliance & Regulatory Support is expected to hold a larger market size during the forecast period. Compliance and regulatory support are essential in mitigating risks associated with financial transactions and ensuring the security and integrity of customer data. FaaS providers offer solutions to help financial institutions comply with regulations more efficiently, including software, services, and data for automating compliance processes, identifying and mitigating risks, and tracking compliance status. The adoption of fintech as a service solution for compliance and regulatory support is growing rapidly as financial institutions seek to reduce costs and complexity. The demand for FaaS solutions in the market is expected to continue growing.

Expanding FaaS Market Potential in Asia Pacific Region

Asia Pacific is projected to grow at the highest compound annual growth rate (CAGR) during the forecast period. Governments in the Asia Pacific region are supportive of fintech innovation, creating a favorable environment for growth. The rising smartphone penetration, increasing demand for convenient and secure payment methods, rapid economic growth, and the need for financial services contribute to the growth of the FaaS market in this region.

Fintech as a Service (FaaS) Market Dynamics:


  • Operational flexibility and scalability with the advent of cloud computing technology
  • Innovation of AI and blockchain
  • Growing demand for streamlined compliance and regulatory solutions


  • Complexity involved in integrating with legacy systems
  • Data security and privacy concerns
  • Risks associated with geopolitical and macroeconomic factors


  • Increasing shift towards digital banking and payments
  • Leveraging technology to improve operational efficiency
  • Expansion of cross-border payments and remittances


  • Lack of interoperability and standardization
  • Complexity and cost associated with financial regulations
  • Scalability and infrastructure challenges of FaaS

Key Companies in the Fintech as a Service (FaaS) Market:
PayPal, Mastercard, Fiserv, Block, Rapyd, Envestnet, Upstart, Solid Financial Technologies, FIS, Synctera, Stripe, Adyen, Dwolla, Finastra, Revolut, Fispan, NIUM, Airwallex, SoFi, Marqeta, Finix, Synapse, and others.

Recent Developments:

  • In May 2023, Rapyd announced a strategic partnership with Belvo to unlock new business opportunities across the region by merging their payment infrastructure with Belvo’s expertise in Open Banking.
  • In April 2023, Block launched Tap To Pay for Android, enabling sellers to accept payments directly from their phones without additional hardware.
  • In April 2023, Fiserv collaborated with Equifax to launch commercial solutions that enhance business authentication, expedite account acquisition, and improve risk evaluation using new analytics.
  • In March 2023, Mastercard acquired Baffin Bay Networks to strengthen its ability to address the evolving cyberattack landscape and assist businesses in combating threats.
  • In February 2023, Upstart partnered with The Bank of Denver to provide customers with a wider range of financial solutions through Upstart’s platform.

Advantages of Fintech as a Service (FaaS) Market:

  • Enables quick start and scalability of financial services operations by leveraging existing infrastructure and technology provided by FaaS providers.
  • Eliminates the need for substantial upfront investments in infrastructure, technology, and personnel, allowing businesses to adopt cost-effective ready-to-use solutions.
  • Provides highly scalable platforms that can accommodate growing transaction volumes and user bases, allowing businesses to expand without infrastructure constraints.
  • FaaS providers specialize in navigating regulatory environments, ensuring compliance and minimizing risks and expenses associated with compliance.
  • Allows businesses to focus on their core capabilities and strategic goals by outsourcing the management and maintenance of financial operations and infrastructure.

Report Objectives:

  • Define, describe, and forecast the FaaS market based on type, technology, application, end user, and regions.
  • Provide detailed information about the factors influencing the growth of the fintech as a service market.
  • Forecast the market size of FaaS across North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
  • Analyze subsegments for individual growth trends, prospects, and contributions to the overall market.
  • Profile key players in the market and analyze their market size and core competencies.
  • Identify high-growth segments of the market and opportunities for stakeholders.
  • Track and analyze competitive developments such as product enhancements, new product launches, acquisitions, and partnerships in the global fintech as a service market.

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