Consumers and Smaller Businesses Form an Untapped Embedded Lending Market in Germany

Download the Data Brief The Embedded Lending Opportunity: Germany Edition

Embedded lending is growing in popularity around the world. It promises convenient, streamlined access to financing for specific expenses from within merchant, business and other platforms. This is true for individuals and microbusinesses and small businesses (MSBs) that want to align their cash flow and expenses.

In Germany, 14% of consumers and 10% of MSBs overall have recently used this type of lending. We find much greater adoption among key segments. For example, 20% of millennial consumers have recently taken advantage of embedded lending. Among smaller businesses, 18% of those generating between €1.5 million and €9.3 million in annual revenue have used it.

However, users widely experience friction. The biggest problem area is the application process. The fact may be one factor limiting the adoption of this type of lending in Germany. Lenders that address these issues will reach and retain many more customers.

These are some of the key findings explored in “The Embedded Lending Opportunity: Germany Edition,” a PYMNTS Intelligence report commissioned by Visa. This edition details the state of play for embedded lending in Germany for the consumer and MSB market segments. The report draws on a 360-degree study of lenders and end users, conducted between Jan. 13 and March 15.

Inside “The Embedded Lending Opportunity: Germany Edition”:

What embedded lending is and how it differs from traditional products

How the market in Germany compares to those in other major economies

Which consumers and businesses are more likely to use this type of lending

The critical role of cash flow stability in predicting demand

The pain points consumers and MSBs experience when using this type of lending

The obstacles that lenders in Germany face in rolling out products

This report includes crucial information for lenders looking to become market leaders in embedded lending. Download the report to learn more about what’s next in Germany.