Market Size of APAC Banking-As-A-Service Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 144.94 Billion |
| Market Size (2029) | USD 230.58 Billion |
| CAGR (2024 - 2029) | 9.80 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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APAC Banking as a Service (BAAS) Market Analysis
The APAC Banking-As-A-Service Market size is estimated at USD 144.94 billion in 2024, and is expected to reach USD 230.58 billion by 2029, growing at a CAGR of 9.80% during the forecast period (2024-2029).
Asia Pacific region is observing a sharp increase in its economic activities and is emerging as a leading digital transaction adoption market. With the rise in different services and businesses different models of payment are been adopted in the region of which BaaS is an upcoming market. Digital payment transaction volume in the region is observing a continuous increase in the region with digital commerce existing with more than half of the market share. This trend is resulting in different businesses adopting BaaS payment methods either directly through banks or by fintech companies.
BaaS as a system allows fintech companies and other third-party organizations to access the bank’s system via APIs and provide its services to the users without having any bank license. Asia Pacific is an emerging market with a continuously rising value of investment in fintech companies. This increase in the number of fintech companies resulted in the creation of new financial products as well as an increase in partnerships between banks and fintech companies for the service. Fintechs and other third-party players running a digital platform are using APIs and the data which banks provides to create new and innovative financial solutions targeting specific customer needs.
BaaS services provided by banks are resulting in a reduction of their customer acquisition cost and expanding their customer base. India, Singapore, and China are emerging as fintech funding countries in the Asia Pacific region leading the fintech space. Local players such as Paytm and Razorpay in India are resulting in an expansion of financial services access to a large amount of unbanked population. These emerging digital payments, financial inclusion, and expansion of financial services are leading to a significant rise in the Asia Pacific Banking As Service market.
