Embedded finance has been on the radar of the payments ecosystem for a while now — but in Europe, it’s safe to say the concept has officially taken root. Whether you’re paying for a ride without leaving the app, getting offered instant insurance when booking a holiday, or managing business finances within a SaaS tool, embedded financial services are quietly changing how we interact with money.
At Edenred Payment Solutions, we’ve been watching this shift closely. Europe has moved beyond experimentation — embedded finance is now a real growth engine for platforms and service providers.
In this blog, we’ll take a look at where things stand today, what’s driving this momentum, the challenges still ahead, and where embedded finance could be heading next.
Embedded finance today: Gaining ground across Europe
Embedded finance in Europe has reached a new level of maturity. It’s no longer just a future-looking concept — it’s already being implemented across a wide range of industries.
By 2030, the embedded finance market could surpass €100 billion and account for 10% to 15% of banking revenue pools.
Adoption is visible everywhere: platforms offering point-of-sale financing, marketplaces providing instant payment solutions for their vendors, and SaaS platforms helping businesses access accounts, cards, and credit lines without needing to log into a bank.
The movement isn’t concentrated in one or two regions either — the UK, France, Germany, and the Nordics are all seeing strong activity. And with over 32 million enterprises across the EU, the addressable market is huge.
What’s enabled this growth?
In large part, it’s the open banking ecosystem that Europe has worked hard to foster. Regulatory frameworks like PSD2 have created more room for innovation by mandating secure data sharing between financial institutions and third-party providers. And with the proposed Financial Data Access (FIDA) framework in the pipeline, embedded finance could soon benefit from even broader access to consumer-controlled financial data — a move that could turbocharge growth further.
"As regulations, such as PSD2, continue to evolve, this enables more innovation within the open banking space and will unlock further use cases to streamline payments."
Vrush Sumanoharan
Product Marketing Manager
Edenred Payment Solutions
Why embedded finance is taking off: The push toward seamless financial experiences
One of the biggest drivers of embedded finance in Europe is the clear demand for better, more convenient user experiences. There’s a growing expectation that financial services should “just work” inside the platforms you're already using and trust. No redirection to a separate banking app. No clunky forms. Just seamless, intuitive access when and where you need it.
"Even in retail, the role of payments is shifting from a utility to an enabler of experiences. Whether it’s social commerce, Buy-Now-Pay-Later, or loyalty, the common thread is embedding financial services seamlessly into the customer journey.
In 2025 and beyond, the best payment providers will be those who are practically invisible but absolutely indispensable."
Alec Donald
Retail Vertical Lead
Edenred Payment Solutions
At the same time, more companies are seeing the business case. Embedded finance isn’t just about UX — it’s also about unlocking new revenue streams.
By embedding financial services into existing propositions, businesses offer added value to users and are able to charge premium rates for their services, generating new revenue.
- A rideshare platform might offer drivers instant access to earnings through payout solutions including virtual cards or in-app wallets.
- A B2B SaaS tool might integrate e-money accounts or payment cards.
- Corporates can embed cards within their workflows via APIs to increase operational efficiency.
These services become part of the core product experience — and they often make the platform stickier as a result.
What’s also making this all possible is the infrastructure. Banking-as-a-Service (BaaS) and modular API platforms have significantly lowered the barrier to entry. Non-financial companies can now integrate financial features without needing a banking licence or direct card scheme membership.
And thanks to Europe’s digitally native user base — with over 90% of EU citizens using the internet regularly — customers are more than ready for this level of convenience.
What's slowing embedded finance down: Fragmentation, trust, and complexity
Of course, it’s not all smooth sailing. One of the biggest hurdles for embedded finance in Europe is the fragmented nature of the market.
While the EU has made great strides in creating a unified financial space, there are still significant differences in regulations, infrastructure, and customer expectations between countries. This can make it tricky for platforms looking to scale across multiple regions.
Then there’s the challenge of implementation. Embedding financial services isn’t as simple as plugging in a widget — especially when you start dealing with KYC, AML, fraud prevention, and local banking compliance. Even with modern APIs, companies often underestimate the operational lift involved.
And let’s not forget about trust. Offering financial services — even in a simple, embedded way — puts a company in a different category in the eyes of the customer. People expect their data and money to be protected to banking-grade standards. That means security, transparency, and regulatory compliance aren’t optional — they’re foundational.
Read our simple guide Embedded Finance explained to learn how we help businesses integrate financial services in an easier way.
What's next in embedded finance down: Growth, diversification, more partnerships
Looking ahead, there’s every reason to believe that embedded finance in Europe will continue its upward trajectory — but the shape of that growth is evolving.
New services are coming into play. While embedded payments, cards, accounts, and financing are already well-established, we’re now seeing more movement in areas like insurance and even payroll.
Embedded insurance, for instance, is growing rapidly across mobility, electronics, and travel — making it easier for customers to protect what they buy at the point of purchase.
Regulatory developments will also shape what’s possible. The anticipated rollout of PSD3 and the finalisation of FIDA are likely to give platforms more clarity and confidence when it comes to integrating financial services.
These rules aim to improve data sharing, increase consumer control, and promote innovation — all key ingredients for the development of the embedded finance space.
And then there’s the rise of artificial intelligence (AI). AI is already being used behind the scenes to personalise financial products. As this technology becomes more accessible, we’re likely to see more intelligent, contextual financial services built directly into digital platforms.
"Embedded finance is not a brand-new concept, but we’re only beginning to tap into its potential. In the years ahead, I expect that nearly all non-financial companies will integrate financial services into their offerings. If they don’t, they risk losing customers to those that do. Additionally, open banking will play a crucial role by fostering increased collaboration within the industry, while unlocking new opportunities for businesses and improved services for consumers.
Finally, the role of generative AI cannot be overstated. It’s often hailed as “the next big thing,” but I’m convinced that it will indeed revolutionise payments - providing hyper-personalised customer experiences.”
Rehana Mitha
Managing Director
Edenred Payment Solutions
Final thoughts
It’s clear that embedded finance is no longer something that’s “coming soon” to Europe. It’s here — and it’s changing the way consumers and businesses interact with financial services.
There’s still plenty to navigate: regulation, scalability, trust. But the momentum is undeniable. For platforms looking to differentiate, drive engagement, or increase value for users, embedded finance is quickly becoming a strategic must-have.
At Edenred Payment Solutions, we’re proud to support the companies building the future of embedded finance — and we’re ready to help them go further.
Curious about how embedded finance could fit into your platform?
Get in touch with our team of experts to evaluate if your product offering is ready to adopt embedded financial solutions and how we can support your journey.
