SAN FRANCISCO , Oct. 28, 2024 /PRNewswire/ -- Adyen , the financial technology platform of choice for leading businesses, has today launched a new report with Boston Consulting Group (BCG) which reveals a game-changing $185 billion market opportunity for SaaS platforms, a substantial 25% increase since 2022. BCG's analysis reveals this market growth is driven by a favorable interest rate environment — due to higher bank revenues from accounts — and an overall expansion of banking revenue pools.
In parallel, the demand for embedded finance from small-and-medium-sized businesses (SMBs) — a sector typically underserved by traditional financial institutions — has broadened well beyond payments. 1 This, coupled with the market's expansion, opens a significant opportunity for SaaS platforms to embed into their offerings more advanced financial products like business accounts, loans, and issued cards. Given typical margins on these products, most platforms have an opportunity to multiply their current revenues by up to three or four times.
"Embedding financial products creates a win-win scenario: SaaS platforms deepen user relationships and unlock new revenue streams by addressing SMBs' overlooked financial needs," says Blake Breathitt , SVP Platforms & Financial Services at Adyen. "Our research underscores the window of opportunity for SaaS platforms to embrace embedded finance to stay competitive, or get left behind. There is an immense market opportunity here for SaaS pla.