Embedded finance is at the heart of a financial revolution happening in endless companies around the globe today, creating enormous value & improved customer experience.
By seamlessly integrating financial services into non-financial platforms, embedded finance is transforming how businesses engage with their customers. This innovative approach allows companies to offer financial solutions directly within their existing products or services, creating a smoother, more convenient experience.
In this blog, we'll explore what embedded finance is, how it works, and how its use can benefit not only businesses but, more importantly, their customers.
Embedded finance is the integration of financial services within non-financial platforms; it enables non-financial businesses to offer banking, lending, payments, or insurance services directly within their digital ecosystems. This eliminates the need for customers to engage with external financial institutions, creating a more seamless and efficient experience.
For businesses, this means an opportunity to provide financial services without the complexity of building banking infrastructure from scratch. For customers, it enhances convenience—reducing friction and making financial transactions more intuitive.
The embedded finance sector is experiencing rapid expansion and it's projected to reach $291.3 billion by 2033 - presenting an unmissable opportunity for businesses.
Why embedded finance matters for businesses
The rapid adoption of embedded finance is reshaping industries, enabling companies to:
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Deliver a superior customer experience – Users can access financial services instantly without leaving their trusted platform.
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Generate new revenue streams – Businesses can introduce monetisation opportunities by offering financing, insurance, or payment solutions.
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Enhance customer retention – By integrating financial services, companies keep users engaged and reduce churn rates.
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Expand market reach – Embedded finance attracts new customers who value integrated solutions over traditional banking alternatives.
These benefits make embedded finance a compelling opportunity for many businesses. This has led to platform strategy experts forecasting total market demand for embedded finance to grow to more than 7 trillion dollars by 2030.
Several factors will lay the groundwork for this growth, including the increasing consumer demand for seamless financial services, the rise of digital platforms embedding financial products, and advancements in regulatory frameworks that support fintech innovation.
Businesses looking to capitalise on this expansion should focus on strategic partnerships, ensuring regulatory compliance, and leveraging scalable financial solutions that enhance user experience and engagement.
Embedded finance examples
Embedded finance solutions can be tailored to fit bespoke use cases, allowing businesses to develop innovative financial services that directly address customer pain points. By embedding financial tools seamlessly into their platforms, companies can eliminate friction in transactions and create superior user experiences. This flexibility enables businesses to craft solutions that not only meet industry-specific needs but also drive engagement, retention, and customer satisfaction.
Let's take a look at some tangible examples:
Retail
Embedded finance is transforming the retail sector by streamlining payments, offering personalised financial products, and enhancing customer loyalty. Retailers are integrating financial services such as branded payment cards, loyalty-driven financing, and frictionless checkout experiences. This not only improves customer retention but also increases average transaction values.
Branded payment cards
Retailers are launching white-label credit and debit cards, allowing customers to make purchases while staying within their brand ecosystem. These cards often come with exclusive rewards and discounts, incentivising continued spending and brand loyalty.
Loyalty-driven financing
By offering financing solutions such as Buy Now, Pay Later (BNPL) or instalment payments, retailers make products more accessible and increase conversion rates. Research shows that BNPL options boost the likelihood of a sale by 20% to 30% and can increase average ticket sizes by up to 50%.
Frictionless checkout experiences
Retailers leverage embedded finance to create seamless, one-click payment experiences. Whether through digital wallets, QR code payments, or automated subscriptions, reducing payment friction leads to higher customer satisfaction and repeat purchases.
Learn more: Embedded finance in retail
Insurance
Modernising claims payouts
Claims payouts need to be efficient, cost-effective, and adapted to the digital world we live in. However, manual and outdated workflows, slow traditional payout methods, and fraudulent claims are challenges that need to be solved.
Virtual cards are an innovative solution, enabling a seamless experience for policyholders with faster and secure disbursements, while helping insurers improve operational efficiency. These cards can be used for insurance payouts related to home emergency repairs, automotive claims, or health expenses.
Embedded insurance for seamless, customised protection
Embedded insurance solutions enable businesses to integrate coverage options directly into their platforms, providing customers with protection at the point of purchase. This eliminates the need to seek third-party providers, creating a frictionless experience. These solutions can then be tailored to meet specific customer needs, such as travel insurance, purchase protection, or liability coverage. By embedding insurance into digital journeys, businesses enhance trust and deliver added value to their offerings.
Revenue growth through embedded insurance
Integrating insurance into existing services not only benefits customers but also creates new revenue streams. Businesses can partner with insurers to provide seamless protection, while earning commissions or premiums, strengthening customer loyalty, and increasing profitability.
Learn more: Embedded finance in insurance
Fintech & banking
White-label card programs
Fintech companies are transforming financial services by embedding payment and banking solutions directly into their platforms. By leveraging embedded finance, they can offer digital wallets, branded payment cards, and seamless transactions, enhancing customer experience and engagement.
Branded payment cards & digital wallets
Fintechs are increasingly offering branded debit, credit and virtual cards, allowing customers to transact seamlessly while staying within their ecosystem. Digital wallets enhance convenience by enabling users to manage funds, make payments, and access rewards in one place. These solutions boost customer retention and drive engagement.
Seamless payments & lending solutions
Through embedded finance, fintechs provide frictionless payments, peer-to-peer transfers, and embedded lending solutions, helping customers access credit faster. Businesses can offer flexible financing, such as Buy Now, Pay Later (BNPL) or microloans, creating new revenue streams while reducing the complexities of traditional lending.
Enhanced data & risk management
By integrating financial products, fintech companies gain deeper insights into customer spending behaviors. These insights allow them to offer personalised financial products, optimise risk management, and improve credit decisioning, leading to better customer experiences and increased profitability.
Learn more: Embedded finance in fintech
By providing Sprive with a comprehensive technology 
platform – including payment processing, licensing,
regulatory compliance, e-wallets integrations, and
anti-fraud services – we underpin this innovative
mortgage overpayment app.
This has empowered homeowners to save on interest
and become mortgage-free quicker.
Travel
Embedded finance is revolutionising the travel industry by enabling seamless payments and financial solutions that enhance customer experience and operational efficiency.
Seamless payments & multi-currency solutions
Travel companies leverage embedded finance to offer customers frictionless payment options. Whether booking flights, hotels, or activities, users can complete transactions with multi-currency digital wallets and automated foreign exchange solutions, eliminating the hassle of manual currency conversion.
Loyalty & prepaid travel cards
Embedded finance allows travel businesses to offer branded prepaid travel cards that provide travellers with secure, convenient, and budget-friendly payment options. These cards often come with perks such as reward points, travel insurance, and cashback offers, driving customer loyalty.
Embedded lending & flexible payment options
With embedded lending solutions, travel companies can offer financing options such as Buy Now, Pay Later (BNPL) for flights and vacations, making expensive trips more accessible to customers. This not only increases conversion rates but also encourages repeat bookings.
B2B & supplier payments
Online Travel Agencies and Travel Management Companies can leverage virtual cards to simplify and secure payments to suppliers. Virtual cards offer a secure, seamless and efficient way to handle B2B transactions, reducing administrative overhead and increased control. With features like one-time use card numbers and customisable spending limits, virtual cards enhance security by minimising the risk of fraud and unauthorised transactions.
By integrating embedded finance solutions, travel businesses can enhance customer satisfaction, unlock new revenue streams, and streamline their financial operations.
Learn more: Embedded finance in travel
Want to learn more about how SaaS companies leverage embedded finance? Check this out 👉 Read the blog
How to successfully implement embedded finance
The key to successfully embedding financial services lies in choosing the right technology partner. Edenred Payment Solutions provide the financial infrastructure businesses need to integrate payments & account solutions seamlessly.
Steps to get started:
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Define your business need – Determine how embedded finance can enhance your platform and add value to your customers.
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Partner with the right provider – Work with a trusted embedded finance solution to ensure regulatory compliance and seamless integration.
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Ensure a frictionless experience – Optimise the user journey to make financial services intuitive and non-disruptive.
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Monitor and refine – Continuously track user interactions and adjust your offering to maximise engagement and revenue.
The future of embedded finance
As we've covered in this article, the demand for embedded finance will continue to grow, driving new innovation across industries. Companies that embrace this trend will stay ahead by offering frictionless, customer-centric financial experiences.
By leveraging solutions like Edenred Payment Solutions, businesses can scale efficiently, boost engagement, and unlock new opportunities—all without the complexities of traditional banking infrastructure.
How we can help you with embedded finance
Explore how we can integrate financial services and take your product offering to the next level.
