BaaS platform revenue to surge 158% by 2028, exceeding $36.4 billion

A new study from Juniper Research, the foremost experts in fintech markets, forecasts that global BaaS (Banking-as-a-Service) platform revenue generated from account/card issuing and transaction fees will grow by 158% to 2028; up from $36.4 billion this year.

This expansion primarily comes from API deployment across eCommerce and freelance platforms, by connecting consumers to innovative financial tools, and so unlocking additional revenue streams for BaaS providers.

The BaaS business model involves the delivery of digital banking services by licenced banks. Through the APIs (Application Programming Interface), these integrate directly into the products of non-banking businesses.

Rising Cost of Compliance Reduces Competition
Regulatory friction is raising the cost of compliance for BaaS providers, with issues around KYC (Know Your Customer) processes increasing the scope of compliance programmes. This will make it harder for smaller fintech companies from non-traditional backgrounds to succeed in the BaaS space. To maximise revenue in a difficult market, we encourage BaaS providers to integrate their solutions with digital platforms, including eCommerce platforms or travel companies.

BaaS Drives Financial Inclusion
BaaS platforms can cater to the financial needs of gig workers and freelancers offering specialised banking products such as short-term loans, or income-soothing solutions tailored to users with irregular income streams. What separates this from accessing traditional loans is that workers loan directly from the platform, or they can access their accrued wages early.

Research author Daniel Bedford commented: “Financial inclusion is driven by accessibility, and BaaS helps serve specific industries or demographics overlooked by traditional banks’ all‑encompassing approach. This allows businesses to stand out and focus on being inclusive to their specific audience; driving growth.”

The Research Suite
The new market research suite offers the most comprehensive assessment of the BaaS market to date; providing analysis and forecasts for over 21,000 datapoints covering 60 countries over the next five years. It includes a ‘Competitor Leaderboard’, and an examination of current and future market opportunities. Juniper Research