Global Fintech as a Service (FaaS) Market to 2028: Increase in Adoption of Cloud Computing and Demand for Digital Financial Services to Bolster Growth

Dublin, June 22, 2023 (GLOBE NEWSWIRE) -- The "Global Fintech Industry Report 2023" report has been added to's offering.

During the forecast period, the global FaaS market is anticipated to experience significant growth, with its market size expected to increase from USD 310.5 billion in 2023 to USD 676.9 billion by 2028, reflecting a robust compound annual growth rate of 16.9%

The growth trajectory of the FaaS market is being influenced by crucial factors driving its expansion. These include the AI and Blockchain technologies fueling the drive for innovation in the business landscape. Furthermore, the growing demand for compliance and regulatory solutions has fueled the adoption of FaaS solutions, providing organizations with the expertise and support needed to mitigate risks.

The increasing use of cloud computing technology has also driven the market, as organizations seek Faas solutions to meet the challenging requirements.

By type, the Payment segment holds the largest market size

The increasing adoption of digital payments and the rise of e-commerce have led to a surge in demand for efficient and secure payment solutions.

Additionally, the shift towards cashless transactions and the growing popularity of mobile payment platforms have further propelled the growth of the payments segment. Moreover, advancements in technology, such as real-time payments, mobile wallets, and peer-to-peer transfers, have revolutionized the way people conduct financial transactions, driving the demand for fintech solutions in the payments sector.

Fintech payment solutions have promoted financial inclusion, particularly in underserved or unbanked populations. By leveraging mobile devices and digital platforms, fintech companies have enabled individuals to access financial services and participate in the digital economy.

Consumer preferences have shifted towards convenient, fast, and secure payment options. Digital payment solutions are replacing traditional methods such as cash and checks due to their ease of use and accessibility. This has further fueled the growth of the payments segment in the FaaS market.

By technology, the blockchain segment to hold the largest market size during the forecast period

Blockchain provides transparency, immutability, and decentralization, making it highly appealing for fintech applications. These features are particularly beneficial in secure data storage, smart contracts, and digital identity verification. The potential cost savings, efficiency gains, and enhanced security provided by blockchain have propelled its adoption within the fintech sector.

Furthermore, blockchain technology has gained significant traction in the financial industry, especially in transactions and settlements. By leveraging blockchain, fintech companies can offer faster, more secure, and cost-effective cross-border payments, remittances, and other financial transactions. The ability to streamline and secure financial operations has contributed to the growing market size of the blockchain segment.

Blockchain eliminates the need for intermediaries in financial transactions, reducing costs and enhancing operational efficiency. This decentralized approach to financial processes appeals to businesses and consumers alike, leading to increased adoption of blockchain solutions within the FaaS market.

By application, KYC verification to have the highest CAGR during the forecast period

Financial authorities across the globe impose strict KYC regulations to combat money laundering, fraud, and illicit activities. Fintech companies offering KYC verification services play a crucial role in helping financial institutions adhere to these regulatory requirements.

As the regulatory landscape becomes more complex and stringent, there is a growing need for advanced and efficient KYC solutions, leading to the expansion of the market. Moreover, the increasing incidence of financial crimes and identity theft has necessitated enhanced customer identification and verification processes.

Traditional manual methods for KYC checks are time-consuming, prone to errors, and expensive. Fintech companies leverage innovative technologies, such as artificial intelligence, machine learning, and biometric authentication, to provide automated and efficient KYC verification services. These solutions enable faster customer onboarding, reduced costs, and improved accuracy, making them highly attractive to financial institutions seeking streamlined compliance processes.

The digital transformation in the financial industry has fueled the demand for remote and online services. With the rise of digital banking, fintech platforms, and mobile applications, there is a need for seamless and frictionless customer onboarding experiences. KYC verification services offered by fintech companies help facilitate secure and convenient customer identification and verification remotely.

The combination of regulatory compliance, the need for advanced verification methods, and the demand for seamless digital onboarding experiences have propelled the KYC verification segment to become the largest market within the FaaS industry.

Competitive landscape

Major vendors offering FaaS solutions are PayPal (US), Mastercard (US), Fiserv (US), Block (US), Rapyd (UK), Envestnet (US), Upstart (US), Solid Financial Technologies (US), FIS (US), Synctera (US), Stripe (US), Adyen (Netherlands), Dwolla (US), Finastra (UK), Revolut (UK), FISPN (Canada), Nium (Singapore), Airwallex (Australia), SoFi (US), Marqeta (US), Finix (US), and Synapse (US).

Key Attributes

Report AttributeDetails
Forecast Period2023 - 2028
Estimated Market Value (USD) in 2023$310.5 Billion
Forecasted Market Value (USD) by 2028$676.9 Billion
Compound Annual Growth Rate16.9%
Regions CoveredGlobal

Premium Insights

  • Increase in Adoption of Cloud Computing and Demand for Digital Financial Services to Drive Market Growth
  • Payments to Account for Largest Share Among Types Through 2028
  • Blockchain to Increase Its Lead Over Other Faas Technologies by 2028
  • Compliance & Regulatory Support to Remain Largest Application Through 2023
  • Financial Institutes Closely Follow Insurance Companies as Leading End-users During Forecast Period
  • Asia-Pacific to Emerge as Best Market for Investments in Next Five Years

Market Overview and Industry Trends


  • Operational Flexibility and Scalability with Advent of Cloud Computing Technology
  • Innovation of Ai and Blockchain
  • Growth in Demand for Streamlined Compliance and Regulatory Solutions


  • Complexity Involved in Integration with Legacy Systems
  • Issues Related to Data Security and Privacy
  • Risks Associated with Geopolitical and Macroeconomic Factors


  • Increase in Shift Toward 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

Use Cases

  • Api Portal by Fiserv Enhanced Consumer Experience for Veridian Credit Union
  • Paymytuition Expanded Its Global Foothold by Implementing Rapyd's Cross-Border and Local Payments Technology
  • Home Chef Leveraging Paypal Checkout Button to Boost New Customer Signups and Revenue

Technology Analysis

  • Ai/Ml
  • Blockchain
  • Application Programming Interfaces
  • Cloud Computing
  • Big Data Analytics
  • Robotic Process Automation

Tariff and Regulatory Landscape

  • Payment Card Industry Data Security Standard (Pci-Dss)
  • Know Your Customer (Kyc)
  • Anti Money Laundering (Aml)
  • Consumer Financial Protection Bureau (Cfpb)
  • Financial Stability Oversight Council (Fsoc)
  • Australian Securities and Investments Commission (Asic)
  • European Union General Data Protection Regulation (Eu Gdpr)
  • Office of the Superintendent of Financial Institutions (Osfi)

Company Profiles

Key Players

  • Paypal
  • Mastercard
  • Fiserv
  • Block
  • Rapyd
  • Envestnet
  • Upstart
  • Solid Financial
  • Fis
  • Synctera

Other Key Players

  • Stripe
  • Adyen
  • Dwolla
  • Finastra
  • Revolut
  • Fispan
  • Nium
  • Airwallex
  • Sofi Technologies Inc
  • Marqeta
  • Finix
  • Synapse

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Global Fintech as a Service (FaaS) Market

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