• At the latest edition of the Salone dei Pagamenti, Fabrick once again outlined integration pathways for a new world of services that aim to foster the development of new models.
• With its cutting-edge vision and comprehensive platform, Fabrick is among the selected entities in the Call for Proposal by Milan Hub of the Bank of Italy.
Milan, 3 December 2024 – Embedded Finance consolidates its position as a key enabler of innovation, capable of driving value across the entire supply chain, benefitting businesses in all sectors as well as their end customers.
This crucial role and the potential Embedded Finance can unlock in various fields were discussed at the workshop titled "Embedded Finance as a Driver of Cross-Industry Innovation", organised by Fabrick, a company operating internationally in Open Finance, at the recently concluded Salone dei Pagamenti in Milan. Following its previous focus on Embedded Finance as an emerging trend, particularly its impact on payment integration in the evolution of services and customer experience, Fabrick this year presented concrete use cases from Luca Corti, Country Manager at Mastercard, Francesco Cosciotti, CFO of Toyota Financial Services, and Paolo Zaccardi, CEO and Co-Founder of Fabrick. These use cases provided valuable insights and sparked further discussion on the topic.
Paolo Zaccardi, CEO and Co-founder of Fabrick, said: “Embedded Finance today represents the intersection of customers’ growing demand for simple, seamless, and integrated experiences and companies’ need to innovate by streamlining internal processes. Through our Open Finance platform, we support corporates across all sectors in simplifying and optimising payment processes, enabling the easy integration of new solutions and services in a modular way. The use of artificial intelligence and predictive models also allows us to analyse data and create increasingly personalised and enriched experiences for the end customer.”
Thanks to Embedded Finance, companies in any sector can integrate financial services into their offerings and provide payment, banking, and insurance services without the need to build proprietary financial infrastructure or obtain regulatory approvals. This simplifies complex processes both internally and externally, creating an ecosystem of value-added services around payments. Embedded Finance therefore serves as both a growth driver and a catalyst for innovation. Fabrick has supported companies across various industries, including automotive, logistics, energy, and utilities, in integrating financial services into their value chains, creating more personalised and fluid experiences while ensuring continuity across multiple channels. Customers can choose the most suitable payment method while accessing a range of additional services designed to enrich and simplify the overall experience.
In this context, Fabrick and Toyota Financial Services have launched a collaboration in the ‘FinMobility’ sector, aiming to create value from all payment and information flows within mobility ecosystems. Through the "Check IBAN" solution, innovative energy operators simplify the customer onboarding process, while companies like Sorgenia and Iren Luce Gas e Servizi are using transactional data analysis tools to optimise credit scoring. The logistics sector is also seeing innovation and Fabrick has partnered with a leading European distributor of products and services in its sector to streamline B2B collection processes.
Fabrick's forward-thinking vision of this key Open Finance trend is increasingly validated by reputable figures.
Rapidly Growing Market
The global Embedded Finance market was valued at $83.32 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 32.8% until 2030, reaching a total value of $588 billion.
In Europe, McKinsey estimates that the market, which generated revenues between €20 billion and €30 billion in 2023, could exceed €100 billion by 2030, representing between 10% and 15% of the financial sector's revenues. In Italy, the projected CAGR between 2024 and 2029 is 24%, with revenues tripling from €3 billion to €9 billion. Among the main segments of the Embedded Finance market, Embedded Payments is the most mature in Europe, reaching a value of approximately €19 billion in 2022-2023. This segment is expected to grow at a CAGR of about 20% until 2029, reaching approximately €55 billion.
Fabrick Among the Selected Projects in the Call for Proposal by Milan Hub
During the closing plenary session of the Salone dei Pagamenti, the projects selected in the Third Call for Proposals by Milan Hub, the Innovation Centre of the Bank of Italy, were announced. After AI and DLT (Distributed Ledger Technology), this third call focuses on digital payments as a lever for the development of innovative banking, financial, and insurance services and products. Fabrick was selected in the INNOVATION area with the project "Account Tokenization for A2A Payments."
“In our proposed project, which was selected by the Bank of Italy, our commitment is demonstrated concretely. We are developing a solution that could fundamentally transform the in-store experience by using account tokenisation and NFC technology. The goal is to create a standard for account-toaccount payments, combining advanced security and scalability to meet the needs of consumers, businesses, and financial institutions in an increasingly connected ecosystem,” added Paolo Zaccardi.
Fabrick:
Since 2018, Fabrick has been a leading reference for continuous innovation for its clients: businesses, fintech companies, and banks. Through an open platform model, Fabrick simplifies the value chain for companies with easy-to-integrate Open Finance solutions, enabling businesses of any size and sector to incorporate digital financial services into their offerings, with a quick time to market. This allows them to seize new business opportunities or enhance their customer experience. Fabrick is associated with innovative entities such as Codd&Date, Dpixel, Fabrick Solutions Spain S.L., Alternative Payment Ltd (operating under the Judopay brand), and Fintech District, the international reference community for the fintech sector in Italy, with over 300 fintech members. Fabrick is owned by the Sella Group, Mastercard, and the Reale Mutua Group. With offices in Milan, Turin, Biella, and Rome, Fabrick operates internationally through its subsidiaries in Madrid, Lugano, and London. For more information, visit www.fabrick.com.