Embedded banking is changing the way companies think about finance, strengthening customer relationships, and driving innovation. The data doesn't lie, research predicts the embedded banking market will grow to $144m by 2034, up from $20m in 2024.
By integrating financial services directly into non-financial platforms, businesses are offering seamless, user-friendly experiences while unlocking new revenue streams and enhancing customer loyalty.
In this article, we'll cover what exactly embedded banking is, why it's generating so much attention, how enterprise businesses can adopt it without taking on the complexity of becoming a bank and more.
What is embedded banking?
At its core, embedded banking means integrating banking services — like payments, accounts, cards or lending — directly into a non-financial company’s digital product or platform. Customers don’t need to leave your app or website to access these services; it’s all part of the experience.
For example:
- A mobile app that issues branded debit cards to its users
- A ride-hailing app that lets drivers receive earnings instantly through in-app accounts
- A B2B SaaS platform that offers its customers a business account with integrated payment tools
This goes beyond offering payments at checkout. It’s about embedding the full stack of banking functionality right where your users already are.
What does embedded banking cover?
- Embedded payments: Seamlessly integrating payment options directly into a platform or service, allowing users to complete transactions without leaving the app or website.
- Embedded lending: Offering loans directly within a platform, enabling users to access credit while using the service. For instance, e-commerce platforms offering instalment payment options at checkout.
- Embedded bank accounts: Allowing users to open and manage bank accounts directly within a non-bank platform. For example, freelancers using a gig economy app that provides integrated banking functionality for their earnings.
- Embedded expense management: Providing expense tracking and management tools within a platform, often combined with spending insights. For instance, a business management app offering e-money accounts with integrated tools to track and categorise company expenses.
Why embedded banking matters for modern businesses
For enterprise leaders, the benefits of embedded banking aren’t just technical — they’re strategic.
First, it creates a more seamless, sticky user experience. When customers can pay, save, or manage money directly within your platform, they’re more likely to stay engaged — and less likely to go elsewhere.
Second, it unlocks new revenue streams. Think interchange fees from branded cards or float revenue from account balances. It’s no longer just about the core product; it’s about monetising financial touchpoints.
Third, it offers greater control. By embedding banking capabilities, businesses can own more of the customer journey — from onboarding to transaction to support — without relying on third-party portals or disjointed flows.
In short: it’s about better user experiences, deeper customer relationships, and new ways to grow.
The difference between embedded banking and becoming a bank
You might be wondering — if embedded banking brings banking services in-house, doesn’t that mean becoming a bank?
Thankfully, no.
Becoming a licensed bank is a long, expensive, highly regulated process. Most businesses don’t want, or need, to go that far.
Instead, you can partner with a provider that offers regulated financial infrastructure — like e-money accounts, payment rails, and APIs — and embed that into your own front-end experience.
It’s a bit like plugging into the pipes of banking without having to build the plumbing yourself.
That’s where Edenred Payment Solutions comes in.
Build your experience with Edenred Payment Solutions
Edenred Payment Solutions helps businesses bring banking-like experiences to life through flexible, compliant e-money infrastructure & scalable, versatile card issuing.
Rather than forcing companies down the path of full banking licences, Edenred Payment Solutions provides:
- E-money accounts that look and feel like bank accounts - create fully compliant UK or EU based e-money accounts, customisable to your requirements.
- Card issuing so you can offer branded physical or virtual cards, choosing between single or multi-use.
- Real-time payments and transfers, enabling instant payouts, salary disbursements, or customer refunds.
- Full regulatory coverage, including anti-money laundering (AML) and Know Your Customer (KYC) processes.
- 20 years of experience - As a trusted payment service provider, we build secure and seamless solutions for businesses of all sizes.
All delivered via modern APIs, so you can build the exact user experience your business needs.
Embedded banking vs banking-as-a-service
It’s worth pausing to clarify a common point of confusion: embedded banking and banking-as-a-service (BaaS) are closely linked, but not the same.
- Banking-as-a-service refers to the underlying infrastructure — the platform that provides banking functionality via APIs.
- Embedded banking is what you build on top — the end-user experience where those services are integrated into your product.
Think of BaaS as the engine, and embedded banking as the custom vehicle you build with it.
Use cases: who’s embedding banking for and why?
Across industries, enterprise companies are finding creative, high-impact ways to embed financial services.
- Insurers are settling claims faster with reliable, secure, scalable virtual card solutions to improve customer satisfaction.
- HR platforms are providing earned wage access and payment cards to support employee financial wellness.
- Logistics firms are creating driver wallets that streamline onboarding and payouts.
- E-commerce platforms are enabling instant refunds, store credit, or branded debit cards to enhance the shopping experience.
- Retailers are offering BNPL, branded gift cards, and loyalty rewards to boost customer retention and spend.
- Online travel agents are embedding financial services—like Buy Now, Pay Later options, travel insurance, and multi-currency travel cards—directly into booking platforms, enhancing convenience, boosting customer loyalty, and unlocking new revenue streams.
In each case, the goal is the same: make financial interactions smoother, more convenient, and more aligned with the core product experience.
Why now? The conditions driving embedded banking forward
Several key trends are accelerating the shift to embedded banking:
- Digital transformation and consumer expectations: The widespread adoption of digital technologies across industries has led consumers to expect seamless, integrated financial services within the platforms they already use. This demand is prompting businesses to incorporate embedded banking solutions to enhance user experience and engagement.
- Cost efficiency and operational benefits: By leveraging embedded banking services, companies can outsource financial functions instead of developing them in-house, leading to cost savings and operational efficiencies.
- Strategic partnerships and ecosystem expansion: Collaborations between traditional banks, fintech companies, and non-financial businesses are expanding the embedded banking ecosystem, facilitating innovation and broader adoption of these services.
This isn’t just a fintech trend. It’s a broader shift in how value is delivered and how businesses interact with money.
What to consider before launching embedded banking
Of course, embedding financial services into your product is a strategic decision. A few things to consider:
- Regulation and compliance: Even if you’re not becoming a bank, you’ll need a partner who handles the standard security practices such as AML, KYC, and ongoing monitoring. But it’s important to look for providers that go beyond the basics, offering advanced tools and proactive support to truly safeguard your business.
- Time to market: How quickly can you bring your product or service to market? Accelerating your launch timeline with efficient, reliable tools ensures speed without compromising quality.
- User experience: It’s not just about functionality — it’s about how seamlessly the solution integrates into your ecosystem. A great user experience should feel native, intuitive, and always on-brand, keeping your customers engaged and satisfied.
- Scalability: Can the solution grow as your business expands? The best tools are designed to scale effortlessly across diverse use cases, markets, and customer segments, ensuring long-term flexibility and success.
These aren’t barriers — they’re strategic levers. With the right partner, you can turn complexity into a competitive edge.
Final thoughts
Embedded banking is reshaping how companies interact with money — making it easier to offer financial services directly within their platforms, while opening up new ways to grow. We’ve explored what embedded banking actually means, why it’s becoming essential for enterprise businesses, how it compares to banking-as-a-service, and what to consider before launching. Most importantly, we’ve shown how Edenred Payment Solutions can help you get there faster…Ready to embed banking-like services within your product?
How we can help you with embedded finance
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