China Embedded Finance Market Report 2025: 100+ KPIs by Business Models, Distribution Models, End-Use Sectors, and Key Verticals - Forecasts to 2030

Dublin, Oct. 20, 2025 (GLOBE NEWSWIRE) -- The "China Embedded Finance Market Size & Forecast by Value and Volume Across 100+ KPIs by Business Models, Distribution Models, End-Use Sectors, and Key Verticals (Payments, Lending, Insurance, Banking, Wealth) - Databook Q4 2025 Update" report has been added to ResearchAndMarkets.com's offering.

The embedded finance market in China is expected to grow by 7.3% on an annual basis to reach US$164.70 billion by 2025. China's embedded finance market has experienced robust growth during 2021-2025, achieving a CAGR of 10.4%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 5.2% from 2026 to 2030. By the end of 2030, the embedded finance market is projected to expand from its 2024 value of US$153.56 billion to approximately US$201.56 billion.

Key Trends and Drivers Shaping Embedded Finance in China

Embedded finance in China is evolving into a multi-stakeholder ecosystem driven by platforms, banks, regulators, and sector-specific apps. The initial dominance of unregulated platform-led models is giving way to more structured, compliant, and partnership-driven ecosystems.

Over the next 2-4 years, we expect the most significant growth to occur in lifestyle credit, B2B supply chain finance, and embedded insurance, particularly as consumer expectations for seamless financial experiences persist and regulatory clarity improves. The maturity of China's digital infrastructure ensures that embedded finance will remain a key pillar of financial services distribution, albeit within a more tightly governed environment.

E-Commerce Ecosystems Are Expanding Embedded Finance Offerings Across Credit, Insurance, and Wealth

• China's e-commerce platforms most notably Alibaba's Ant Group and JD.com's JD Technology are embedding financial services deeply within their ecosystems, going beyond payments to offer credit, wealth management, and insurance at the point of commerce. These services are tightly integrated within platforms like Alipay and JD Wallet, enabling consumers and merchants to access loans, buy insurance, or invest in money market funds without leaving the platform.
• The scale of China's e-commerce sector (total online retail sales reached over CNY 15.4 trillion in 2023 per NBS) provides a large, transaction-rich environment for embedding finance. Additionally, user familiarity with superapps and trust in platform-integrated financial tools has lowered adoption barriers for embedded services.
• This trend is expected to intensify as platforms seek to retain users and drive monetization through financial products. Regulatory tightening has curbed aggressive lending growth, but embedded wealth and insurance services are likely to grow steadily, especially via API integrations with licensed third-party providers.

Financial Institutions Are Partnering with Technology Platforms to Regain Distribution Control

• Chinese banks and insurers are increasingly using embedded finance channels to reassert their role in consumer financial journeys. For instance, ICBC, Bank of China, and Ping An Bank have integrated APIs with digital platforms such as Meituan (food delivery) and Xiaohongshu (social commerce) to offer installment lending and insurance products at checkout.
• Post-Ant Group crackdown and regulatory push for platform neutrality (notably the 2021 "anti-monopoly" enforcement in platform economies), banks have been empowered to build their own digital rails or co-develop embedded services with platforms. This has reshaped the dynamics from platform-dominant to co-regulated partnerships.
• Embedded finance will shift towards a regulated co-creation model, where banks control underwriting and data governance while tech partners manage front-end experience. This will create more balanced market power and potentially more diversified financial product offerings.

Embedded Credit in Transportation and Lifestyle Apps Is Normalizing Everyday Credit Use

• Embedded credit offerings have become commonplace in ride-hailing, bike-sharing, and food delivery apps. For example, DiDi Chuxing offers credit lines and installment loans through its DiDi Finance arm, while Meituan Monthly Pay allows users to consolidate lifestyle spending and repay monthly.
• China's urban consumers especially Gen Z and younger millennials exhibit high frequency of micro-transactions. Embedded finance models that offer flexible credit for low-ticket, high-frequency use cases have seen higher adoption. Additionally, real-time behavioral data from these platforms allows for dynamic credit scoring.
• Usage of embedded credit in transportation and food delivery will continue to expand, especially as platforms shift toward monetizing financial services amid tightening core business margins. Risk controls will become stricter under People's Bank of China (PBoC) lending guidelines, but embedded credit will likely remain a key growth lever in the mobility sector.

B2B Embedded Finance Is Emerging Within China's Industrial Internet and SME Ecosystems

• Embedded finance is extending to small businesses and manufacturers via procurement platforms like LianLian DigiTech, JD Industrial, and AntChain. These platforms offer working capital loans, receivables financing, and embedded factoring directly within enterprise transaction systems.
• The push towards digital transformation in supply chains, a national policy priority under the "Industrial Internet" framework, is enabling financial institutions to reach SMEs via digital trade ecosystems. Lenders leverage transaction histories, logistics data, and contract flows to underwrite and disburse loans automatically.
• B2B embedded finance is expected to become a mainstream credit delivery model for small enterprises in logistics, wholesale, and manufacturing. Embedded financial infrastructure in supply chain platforms will accelerate, especially with backing from policy banks and local government pilots.

Regulatory Restructuring Is Driving Standardization and Compliance in Embedded Finance

• China's embedded finance market is being reshaped by regulatory changes that target data use, lending caps, platform neutrality, and consumer protection. The introduction of financial holding company rules, data security laws, and the PBoC's risk classification system for fintech credit have had direct implications on embedded finance players.
• The government's efforts to rein in systemic financial risks from fintech expansion particularly following the halted Ant Group IPO have led to a restructuring of how embedded financial services are offered. Platforms must now work with licensed financial institutions, and embedded services must comply with uniform disclosure and risk evaluation protocols.
• The industry will see increased formalization, with embedded finance products becoming more aligned with traditional banking standards. Larger players will adapt by restructuring or obtaining licenses (e.g., Ant Group's financial holding license), while smaller players may consolidate or exit due to compliance burdens.

Competitive Landscape of Embedded Finance in China

China's embedded finance market is moving from platform-dominated growth to regulated partnership-driven maturity. The competitive landscape is undergoing a structural realignment where control is shifting from unlicensed fintechs to licensed institutions and compliant platform collaborators.

Over the next 2-4 years, success will depend on firms' ability to comply with evolving licensing norms, build open and secure APIs, and deliver embedded financial services within sector-specific platforms like healthtech, mobility, and supply chains. The intensity of competition will remain, but it will be shaped more by governance, compliance, and infrastructure sophistication than by user acquisition alone.

This report provides a detailed data-centric analysis of the embedded finance industry in China, covering five major verticals: payments, lending, insurance, banking, and investments & wealth management. It covers more than 100 KPIs, including transaction value, transaction volume, average transaction size, revenue indicators, and financial performance measures.


Key Attributes:

Report Scope

This report provides in-depth, data-centric analysis of the embedded finance market in China, with exclusive coverage of B2C transactions and adoption metrics. Below is a summary of key market segments.

China Embedded Finance Market Size and Growth Dynamics

• Total Transaction Value
• Number of Transactions
• Average Value per Transaction

China Embedded Finance Financial Performance Indicators

• Total Revenue
• Average Revenue per Transaction / Product

China Embedded Finance Key Metrics

• Operational Efficiency Metrics: Transaction Success Rate, Automation Rate (Instant Decision %), Average Turnaround / Processing Time
• Quality & Risk Metrics: Fraud Rate, Error Rate
• Customer Behavior Metrics: Repeat Borrowing Rate, Customer Retention Rate, Churn Rate, Conversion Rate, Abandonment Rate, Cross-Sell / Upsell Rate
• User Experience Metrics: Average Transaction Speed, Average Order / Loan / Policy / Investment Size

China Embedded Payments Market Size and Growth Dynamics

• Total Payment Value (TPV) and Growth Outlook
• Number of Transactions and Usage Trends
• Average Revenue per Transaction

China Embedded Payments Key Metrics

• Transaction Metrics: Transaction Success Rate, Repeat Usage Rate
• Operational Efficiency Metrics: Chargeback Rate, Fraud Rate, Dispute / Resolution Rate
• Conversion & Retention Metrics: Conversion Rate, Abandonment Rate, Customer Retention Rate
• User Experience Metrics: Average Transaction Speed, Error Rate

China Embedded Payments Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

China Embedded Payments Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

China Embedded Payments Market Segmentation by End-Use Markets

• E-commerce & Retail
• Digital Products & Services
• Travel & Hospitality
• Leisure & Entertainment
• Health & Wellness
• Utility Bill Payments
• Other Sectors

China Embedded Lending Market Size and Growth Dynamics

• Loan Disbursement Value
• Number of Loans Issued
• Average Loan Size

China Embedded Lending Key Metrics

• Credit Quality & Risk Metrics: Delinquency Rate (30/60/90 Days), Approval Rate, Default Rate, Loss Given Default (LGD)
• Monetization & Unit Economics Metrics: Interest Revenue per Loan
• Adoption & Usage Metrics: Repeat Borrowing Rate
• Operational & Platform Efficiency Metrics: Loan Origination Time (TAT), Automation Rate (Instant Decision %)

China Embedded Lending Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

China Embedded Lending Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

China Embedded Lending Market Segmentation by Product Types

• Buy Now, Pay Later (BNPL)
• Point-of-Sale (POS) Lending
• Personal Loans
• Gig Worker Income Advances
• Other Loan Types

China Embedded Lending Market Segmentation by End-Use Markets

• E-commerce & Retail
• Gig Economy
• Travel & Hospitality
• Healthcare
• Education & EdTech
• Automotive & Mobility
• Other Sectors

China Embedded Insurance Market Size and Premium Dynamics

• Gross Written Premium (GWP)
• Number of Policies Issued
• Average Premium per Policy

China Embedded Insurance Key Metrics

• Policy & Premium Metrics: Renewal Rate
• Claims & Risk Performance Metrics: Claims Ratio (Loss Ratio), Claim Frequency, Claim Settlement Time, Fraud Rate
• Platform Monetization Metrics: Embedded Insurance Revenue per User (RIU)
• Distribution & Conversion Metrics: Attachment Rate, Quote-to-Bind Conversion Rate, Cross-Sell / Upsell Rate

China Embedded Insurance Market Segmentation by Policy Type

• Life Insurance
• Non-Life Insurance (Motor Vehicle, Home/Property, Accident & Health, Others)
• Motor Vehicle
• Home/Property
• Accident & Health

China Embedded Insurance Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

China Embedded Insurance Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

China Embedded Insurance Market Segmentation by End-Use Markets

• E-commerce & Retail
• Travel & Hospitality
• Automotive & Mobility
• Healthcare
• Other Sectors

China Embedded Banking Market Size and Account Dynamics

• Total Deposits / Inflows
• Account Fee Revenue

China Embedded Banking Key Metrics

• Account Metrics: Account Churn Rate
• Risk & Compliance Metrics: Fraudulent Transaction Rate

China Embedded Banking Distribution by End-Use Markets

• Gig & Freelance Platforms
• E-commerce & Marketplaces
• Fintech Apps & Neobanks
• Other Platforms

China Embedded Investments & Wealth Market Size and User Dynamics

• Total Assets Under Management (AUM)
• Number of Investment Transactions
• Average Investment per User

China Embedded Investments & Wealth Key Metrics

• Returns & Performance Metrics: Annualized Portfolio Return
• Retention Metrics: Account Churn Rate

China Embedded Investments & Wealth Market Segmentation by Business Models

• Platform-Based Model
• Enabler-Based Model
• Regulatory-Entity Model

China Embedded Investments & Wealth Market Segmentation by Distribution Models

• Own Platforms
• Third-Party Platforms

China Embedded Investments & Wealth Market Segmentation by End-Use Markets

• Fintech & Neobank Apps
• E-commerce & Super Apps
• Gig & Freelancer Platforms
• Other Platforms

For more information about this report visit https://www.researchandmarkets.com/r/59qdej

About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Attachment

• Chinese Embedded Finance Market