What is embedded finance?
Embedded finance represents a paradigm shift in the way financial products and services are delivered, integrating them into non-financial platforms. Imagine adding travel insurance through a booking app, securing a small business loan on an accounting platform, or investing in mutual funds via a mobile app—these are all quintessential examples of embedded finance. Here, financial services are not standalone entities but are woven into the fabric of everyday platforms, creating a seamless experience for users.
At its core, embedded finance involves non-banking platforms—such as rideshare apps or travel websites—embedding financial services as value-added offerings. This trend extends to various financial sectors including card issuance, payments, lending, banking, wealth management, and insurance. The outcome is a smooth, integrated experience that aligns perfectly with modern consumers' and businesses' desires for simplicity, convenience, and efficiency.
How does embedded finance work?
The early iterations of embedded finance were often seen in high-value transactions, such as purchasing airline tickets on the carrier’s website or obtaining an auto loan through a car dealership. These initial journeys were typically fragmented, requiring users to be redirected from the merchant's site to a bank's portal to finalize the transaction.
Today, embedded finance has evolved significantly. It now appears in forms like Buy Now Pay Later (BNPL) options on e-commerce platforms, or account onboarding within an app. The entire process is streamlined within the app or site, often completed in just a few clicks.
Embedded finance involves providers who supply the financial products and services; enablers who connect providers of goods or services with distributors, offering the software and regulatory support; and distributors who operate the platforms where consumers shop and interact with built-in financial services.
Think of embedded finance as a smart data platform that brings together the technology infrastructure, industry know-how, licensing and plug-and-play integrations to make payments work behind the scenes.
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Who benefits from embedded finance?
Embedded finance is one of those rare instances where everyone can win. Providers can access a low-cost way to reach more customers; enablers can tap into the growing demand for faster, simpler experiences; distributors can boost engagement on their platforms; and end-users can get real-time, personalized financial services — all within existing consumer experiences or business workflows.
Businesses are leveraging embedded finance tools to streamline customer onboarding processes and enhance user engagement. As expectations for personalized, rapid services rise – and with both public and private sectors advocating for greater financial inclusion – embedded finance stands out as a key enabler for accelerating working capital solutions.
As this trend continues to gain momentum, the financial ecosystem has an opportunity to become more integrated, efficient, and user centric.
Learn more about embedded finance:
Associate at ABB
1wGreat advice
Associate at ABB
1wLove it & thanks for share
Digital Transformation Manager | Go To Market Expert (GTM) | Data Analytics | Customer Happiness | Digital Marketing | PM | Business Growth Hacker | Content Marketing | Disruptive Innovator | IFC - World Bank Group
1wNice share, I have been admiring Visa from afar and hope one day we did get closer. Example of embedded finance is: Uber + Visa Debit Card (Uber Pro Card) What is it? Uber offers its drivers a Visa-powered debit card (called the Uber Pro Card) that is embedded within the Uber Driver app. 1. Instant Earnings: Drivers can receive their earnings instantly to their Uber Visa Debit Card after each trip—no need to wait for bank processing. 2. Embedded Wallet: The card is linked to an in-app wallet, meaning drivers manage their money directly inside the Uber app. 3. Rewards & Perks: The card offers cashback on gas and other driver-related expenses—powered by Visa’s rewards infrastructure. 4. No Need for a Bank: Even if the driver doesn’t have a traditional bank account, they can access and use financial services through the Uber app and the Visa card.
(Coal,Coke,Iron&Steel Trader)
1wVisa I’m compelled to bring to your attention a serious issue regarding HDFC Bank’s non-compliance with Visa’s chargeback policies, specifically under Reason Code 13.1 – Services Not Received. Despite multiple follow-ups and submission of all necessary documentS, has HDFC Bank repeatedly closed disputes based solely on the merchant’s denial — without allowing escalation to Visa Arbitration, as mandated under Visa Core Rules. This contradicts the framework designed to protect cardholders when issuers and acquirers fail to agree. In stark contrast, banks like State Bank of India and AU SMALL FINANCE BANK have upheld customer rights and even successfully escalated similar disputes to arbitration, resulting in favorable outcomes. So why is Visa’s policy being ignored by HDFC Bank Bank? And why is there no accountability? Consumers are being left vulnerable and unfairly burdened with merchant liabilities. I urge Visa to step in, investigate this systemic issue, and ensure your dispute resolution policies are enforced consistently across all issuers. #VisaChargeback #VisaArbitration #ICICIBank #ConsumerRights #ServiceNotReceived
Software Design |Financial Services |Client Relationships |FinTech
1wGreat read! Embedded finance is clearly transforming the delivery of financial services—and from my vantage point in Open Banking, it’s also accelerating a broader shift: from integration as a tech project to integration as a product expectation. We’re seeing how open banking APIs make it possible for FinTechs and banks to plug directly into these embedded experiences with minimal friction. It’s not just about convenience—it’s about enabling choice, real-time connectivity, and interoperability across the financial ecosystem. To keep up with the pace of embedded innovation, Open Banking needs to be more than compliant—it needs to be intuitive, secure, and scalable for the businesses building on it. That’s where the real unlock happens. #OpenBanking #EmbeddedFinance #FinTech #BankingInnovation #APIeconomy