Your resource for understanding embedded finance

Explore and learn more about what embedded finance is and how you can put it to work for you.

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What is embedded finance?

What is embedded finance?

Embedded finance is the delivery of banking, payment and other financial services within the context of a user experience – most often software or app-based. The user encounters the financial service offering at the most relevant point of their business process.

To put this in a real-world scenario: think of a business owner for a small chain of local bakeries placing an order for $10,000 of confectioner’s sugar. Within the order management system, the manager is presented with options to finance the order, based specifically on that bakery’s business data profile.

Why is embedded finance happening now?

The current financial system doesn't fit the needs of people today. Entrepreneurs and small businesses have to jump through hoops to get the services they need.

At the same time, financial technology has made it possible for other types of companies, like software companies, to offer financial services through their platforms.

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Why embedded finance is the next act for software-led payments – and why it matters

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Payments are the proof: Embedded finance is already here

What does embedded finance look like?

Companies are delivering innovative, customer-focused financial service options through their platforms, meeting their own customers where they are. Banks and other traditional service providers are moving to a role that is more strategic partner than end user delivery point.

These new services are resulting in better customer experiences that allow service providers to be the central point for how their customers do business.


Breaking down embedded finance: A look at the possibilities

How does this affect me?

If you’re an ISO or other payments provider, ask yourself where your new audience is and how you can deliver a better customer experience. Can you partner with newer tech-forward companies?

If you’re a software company, ask yourself what financial services are a natural fit for your platform. Can you help your customers smooth their cash flow with access to capital, for example?

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Should you expand further into embedded finance?