BaaS Platform Revenue Juniper Research

Banking-as-a-Service (BaaS) revenue is expected to increase by $27billion over the course of the next five years; according to the latest figures from Juniper Research

BaaS platform revenue has been forecast to top $38billion by 2027, marking a 240 per cent increase from the $11billion figure recorded in 2022.

This astronomical projection is expected to be driven by BaaS’ ability to deepen relationships between brands and their customers through the provision of user-friendly banking and payment experiences.

BaaS enables non-banking companies to offer their customers financial services without owning a banking licence or infrastructure. This allows brands to generate new revenue without using time and resources to generate new capabilities in-house.

This prediction formed the centrepiece of Juniper’s latest whitepaper, entitled Banking-as-a-Service: Segment Analysis, Competitor Leaderboard and Market Forecasts 2022 – 2027,  which assessed the top 15 BaaS vendors within the global market.

Of the top three vendors in the market today, the research pinpointed vendors Green Dot, Marqeta and Solaris as industry leaders.

Juniper evaluated each vendor based on the same criteria, which included distribution and partnerships, breadth of offering and future business prospects in BaaS.

The research found that Green Dot leads the BaaS market largely due to its strong partnerships; specifically with large retailers such as Apple and Walmart. Additionally, it highlights Green Dot’s banking and payments solutions, including card issuance, custom rewards and payroll services.

Marqeta also ranks well due to its international presence; being able to leverage a competitive position when onboarding multinational customers.

Dominique Tetnowski, research analyst, Juniper Research

Similarly to Green Dot, Solaris’ success stems from its large volume of partnerships that have been achieved through its brand, coupled with the integration and technical support offered by its services.

“As digital banking is becoming increasingly advanced, pressure is on fintechs to innovate their BaaS capabilities to exceed user expectations,” explains research author Dominique Tetnowski.

“Offering a solutions portfolio in BaaS that has all the capabilities needed to offer banking services means that enterprises can focus on delivering a superior user experience, which is critical in an increasingly competitive banking environment.”

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