By “headless banking” I meant the more ubiquitous term “embedded finance.” New market analysis from“The integration of financial services into non-financial websites, mobile applications, and business processes.”
The Lightyear report estimates that embedded finance will grow to nearly $230 billion by 2025, up from $22.5 billion this year.At a five times revenue multiple, embedded finance will create more than $1 trillion of value by 2025.
According to research from Cornerstone Advisors, many consumers younger than 55 are willing to get a checking account from non-banking providers like Amazon, Google, and even Starbucks and Uber.This isn’t very different from research I conducted nearly 20 years ago. The big difference being non-traditional providers didn’t have bank-as-a-service providers to avail themselves of back then.
By expanding into embedded lending, Shopify is strengthening the economic advantages it already enjoys from embedding payments., “Intuit launched QuickBooks Cash, a no-fee business bank account that pays 1% interest when used with QuickBooks software or mobile apps and helps small business owners remove the complexity of managing their finances.”