Embedded finance is becoming increasingly important for the whole digital industry. Fintech elements can be found nowadays in nearly every application, from the gaming industry to e-learning. So, in this blog post, I will focus on the part of the process that interests every business owner: the implementation. 

Embedded finance, like any digital product or feature, is an investment. Still, it is an integral part of retail software or any product that involves funds transfer, such as buying items or paying for services.

Currently, the embedded finance market’s total value is estimated to be over $155 billion, but with a CAGR of 16.8%, it is expected to .

I have compiled this article based on my and my colleagues’ hands-on experience. As this solution’s popularity is soaring, I believe it can bring incremental benefits in nearly any market segment.

What is Embedded Finance

 fintech elements implemented into non-fintech solutions, allowing customers to embed financial services directly into their platforms. For example, a fintech element can be integrated into the platform via an API, which would allow users to pay the bill, buy a service, or perform any other activity associated with financial software.

With such capabilities, embedded finance definition has certain advantages for businesses that decide to implement such features. For example:

• streamlining financial processes,
• ensuring enhanced customer experience,
• reducing the need for intermediaries, which cuts business owners’ costs.

The embedded finance revolution is a transformative shift in which financial services expand into non-financial sectors through strategic partnerships. Collaborating with embedded finance solutions providers allows companies to quickly and cost-effectively offer financial products.

Insights into Embedded Finance Market

The embedded payments market is vast and innovative, but most importantly, it is still expanding. Financial transactions play a crucial role in determining the market size and potential for expansion over the coming years.