Banking-as-a-service: The $1T market to build the Twilio of embedded finance

Hi everyone 👋

Today, we launched our report on Banking-as-a-Service: The $1T Market to Build the Twilio of Embedded Finance. We’d love for you to read it and let us know what you think.

Key to the value proposition of banking-as-a-service is the idea of "free". If companies can monetize their products on the back-end, whether by collecting interchange fees or lending, they can grow fast by offering them to the end-user for free: hence products like Cash App, Ramp and Klarna.

But with the competitive threat posed by Marqeta and its $60B/year in transaction volume, there's a chance that the best BaaS companies won't go after the Klarnas and Squares of the world at all—or even target fintechs at all.

Instead, like Twilio did with communications, they may focus on helping the long tail of developers everywhere unlock the potential product value of embedded finance.

Click through to read our full report on banking-as-a-service. 

Thank you!

Jan