Examples of embedded finance


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  1. Introduction
  2. What is embedded finance?
  3. How does embedded finance work?
  4. Types of embedded finance
  5. Examples of embedded finance
    1. Payments
    2. Lending
    3. Subscription management
    4. Insurance
    5. Investments
    6. Digital wallets
    7. Bill payments
    8. Identity verification
    9. Currency exchange
    10. Tax services

Embedded finance is a diverse category of solutions that encompasses everything from integrated payment processing within a social media platform to tailored insurance policies activated by specific data inputs. The trend towards businesses of all types embedding financial functionality into their products constitutes a fundamental rethinking of how customers interact with platforms and how their expectations surrounding digital transactions are influencing business economics.

In addition to the way in which embedded finance is redefining customer experiences, it has also upended roles in financial environments that were previously well defined, with non-financial businesses gaining a more active stake in many areas. A 2023 forecast from Statista estimates that the embedded finance market will reach a valuation of more than US$230 billion by 2025, signalling a huge growth opportunity. Whether your business is already using embedded financial solutions or considering it for the first time, this is a topic that is worth your time. Below, we'll look at some of the most popular types of embedded finance and how businesses are using them in different contexts.

What's in this article?

  • What is embedded finance?
  • How does embedded finance work?
  • Types of embedded finance
  • Examples of embedded finance

What is embedded finance?

Embedded finance is the practice of incorporating financial services directly into websites or applications that focused originally on non-financial functions. With this approach, customers can access a range of banking and financial features – including making payments, taking out loans or buying insurance – without having to leave the application. The goal is to offer a more convenient and integrated experience, in which customers can perform both their core activities and financial transactions in one place.

How does embedded finance work?

Imagine that you're using your favourite fitness app and you decide to upgrade to a premium subscription for advanced access to workouts. Instead of being transferred to a separate payment page or website to make the payment, you're able to complete the transaction within the app itself. The chances are that you don't even notice that you're interacting with a separate financial layer.

Embedded finance works by integrating financial services directly into the customer interfaces of apps and websites that do not have an original financial purpose. Think of it as a way to build financial features directly into the software architecture. Customers can access and execute payments, lending options and even insurance in the same environment in which they shop online, hail a taxi or book a holiday rental.

Application programming interfaces (APIs) make embedded finance possible by connecting businesses with financial institutions, thereby creating a more intuitive and less fragmented customer experience. Instead of juggling multiple apps or websites to complete one task, customers can access their financial transactions in the same places that they already spend their time online.

Types of embedded finance

Embedded finance can transform digital businesses from intermediaries into powerful financial hubs. By integrating financial services directly into non-financial digital environments, businesses across a wide range of sectors can streamline the transaction process for customers while simplifying their operations and diversifying their revenue streams.

Embedded finance is an umbrella term that encompasses many types of services. Here's a summary of some of the most popular types of financial services that non-financial businesses are integrating into their online environments for customer use:

  • Payments: direct payment processing removes the need for external payment gateways. This makes transactions more straightforward while opening up new avenues for revenue.

  • Lending: built-in lending options – such as microloans or buy-now-pay-later services – facilitate larger transactions, capturing value that is usually lost to external lenders.

  • Insurance: implementing insurance options can increase transactional confidence and generate additional income through premium collections.

  • Investments: businesses can add features that allow customers to purchase stocks, bonds or cryptocurrency, keeping customers engaged while collecting fees on these sales.

  • Digital wallets: digital wallets keep customers on your website or app by simplifying the management of funds. Customers can store, receive and send funds without leaving your online environment.

  • Subscription management: including a feature that allows customers to oversee their subscriptions can help to retain customers by making it easier for them to manage recurring costs.

  • Bill payments: incorporating utility bill payment options expands the scope of your business, offering customers another reason to engage with your services.

  • Identity verification: identity-verification processes built directly into your website can improve security, providing peace of mind for both customers and administrators.

  • Currency exchange: for businesses with an international focus, currency-exchange features can add considerable value by simplifying cross-border transactions.

  • Tax services: with many businesses operating across jurisdictions, integrated tax calculation or filing capabilities can be a powerful addition (particularly for e-commerce businesses or those dealing with freelance work).

Each type of embedded financial service has the potential to add different forms of value to your business, whether it's a new revenue stream or improved customer engagement. You can leverage financial services to increase the overall convenience of your business offerings – and maximise the revenue potential of every customer relationship.

Examples of embedded finance


As the starting point for many businesses exploring embedded finance, embedded payments simplify the payment process and also present opportunities for advanced data analytics and revenue generation. When a business integrates payments fully into a website or digital platform, making a purchase becomes an effortless part of the customer experience. Redirecting a customer to complete a transaction via a third-party website can lead to friction that – as customer expectations increase – may seem intolerable and result in higher basket abandonment and drop-off.

Embedded payment technology is a combination of APIs and software development kits (SDKs) that form part of the platform's foundational code. Customers make payments directly in the website interface by entering their card details, engaging a digital wallet or using alternative methods, such as QR codes. This means that they can complete transactions without ever leaving the app or website. The immediate benefit is a more straightforward, faster transaction process that's valuable for both customers and businesses. Embedded payments offer customers ease and speed – two factors that can significantly improve customer retention rates. For businesses, embedded payments open the door to an expanded set of data analytics. Transaction data is now processed and stored within the platform, and it can be analysed to identify purchasing trends, customer behaviour and more. Businesses can leverage this advantage to shape product strategy and decision-making processes.

In addition to enhancing customer interactions and offering in-depth data analysis, embedded payments can also bring in additional revenue through transaction fees. Stripe's APIs can help you grow revenue and expand faster while reducing manual processes and compliance risks.

Learn more about embedded payments with Stripe.


Embedded lending provides a fast and integrated way to extend credit to customers directly, within an existing digital platform. While conventional lending can require a lengthy application process and sometimes a trip to the bank, embedded lending deploys algorithms and APIs to assess credit risk on the spot. This delivers instant loan decisions without requiring the customer to navigate away from your website.

Here's what that might look like in action: a customer shops on an e-commerce website and reaches the checkout page. Instead of paying up front, they choose a credit option that is integrated into the checkout interface. APIs work in the background to pull data and assess the customer's credit based on multiple factors, such as transaction history, behavioural metrics and other proprietary indicators. The algorithm calculates the risk and credit limit, and the checkout page offers the customer instant loan options.

For customers, this level of financial convenience means that they don't have to jump between platforms or wait days for credit approval. The speed and ease with which they can gain access to credit can translate to increased transaction completion rates. For businesses, it means increased sales and lower basket abandonment rates.

Embedded lending also provides businesses with immense data analysis opportunities. Every transaction, in addition to every approval or denial of credit, becomes a data point. This data can be mined for valuable insights into customer behaviour, which can guide future marketing strategies, product placement and other key business decisions.

Embedded lending can open up an additional revenue channel through interest rates and loan fees for businesses that might otherwise rely on the sale of goods and services as their main source of revenue.

Learn more about Stripe's embedded lending options.

Subscription management

When integrated directly into digital platforms, subscription management offers a centralised, automated way to handle recurring payments. Subscription management can eliminate most of the hassle associated with manual payment collection, invoice generation and service activation – making the entire process far more agile. While customers gain a more focused and better orchestrated experience, businesses gain a more systematic and largely automated operational workflow.

Imagine the following scenario: a customer signs up for a video streaming service through an app and chooses a monthly subscription. APIs and algorithms embedded within the platform take over, automating everything from payment collection to service activation and renewals. In this situation, customers don't need to worry about due dates or service interruptions for non-payment, because the subscription-management system that powers their account is programmed to remind them about payments, retry their payment method automatically if it fails and even remind them if their payment method is due to expire soon. At the same time, the service provider doesn't have to chase down payments or deal with manual service activations and deactivations.

For the customer, this means less time spent worrying about due dates or renewals. Once they have signed up for a subscription, they can focus solely on using the service. This can lead to increased customer satisfaction, which in turn, can drive down churn rates for the service provider.

For businesses that use subscription-based models, embedded subscription management is a major upgrade in efficiency. Automated billing cycles remove a large chunk of administrative work by ensuring that subscriptions get renewed on time, helping businesses to maintain a stable revenue base. Data analysis gets a serious boost, too. The ability to track a customer's subscription history, from initiation onwards, offers a comprehensive look into customer behaviour. This kind of insight can reveal important information, such as where in a subscription cycle customers are most likely to churn, which can be used to inform a business's targeted retention strategies.

As with other types of embedded finance, subscription management can have a strong positive impact on revenue. It automates the recurring revenue collection and also adds another level of revenue diversification. Businesses can experiment with tiered subscription models, limited-time offers and even loyalty programmes – all managed centrally within the same environment. Over time, these incremental revenue models can add up to a substantial contribution to the bottom line.

Learn more about integrated subscription-management solutions from Stripe.


Implementing insurance options directly into a digital platform can elevate customers' confidence when they make transactions on the platform. For example, an e-commerce business might offer delivery insurance at the point of purchase, offering customers peace of mind in knowing that their purchase is protected against loss or damage. Meanwhile, the business collects insurance premiums – an additional income stream that can grow significantly when scaled across a large customer base.


Integrating investment features, such as buying stocks or cryptocurrency, adds another layer of customer interaction. Without having to switch platforms, customers can diversify their financial portfolio – a strong incentive for maintaining customer engagement. Businesses collect transaction fees from investment activities, which provides a revenue stream that is separate from the primary focus of the business.

Digital wallets

Businesses can integrate digital wallets into their platforms to simplify fund management for customers, allowing them to store, send and receive money without leaving the digital environment. The ease of financial transactions can result in increased customer-retention rates. Businesses can use digital wallets as an opportunity for upselling or cross-selling services, capitalising on the convenience factor.

Bill payments

Including utility bill payment functionality increases a digital platform's overall usefulness. Customers no longer need to juggle between multiple apps or websites to manage their expenses, which leads to higher levels of engagement. Businesses can use this feature as a stepping stone to introduce other financial services, gradually turning their platform into a one-stop shop for their customers' financial needs.

Identity verification

Embedded identity-verification techniques can boost the security measures of a digital platform. Strong identity checks that reduce the risk of fraud reassure customers that their payment information is safe. Administrators also gain from increased security measures, which minimise risks and potentially lower the costs associated with fraud prevention.

Currency exchange

Currency-exchange features can make a big difference for businesses with a global focus. Customers can convert their money to the required currency quickly and easily, removing a common hurdle of cross-border transactions. By charging a small fee for the conversion service, businesses can create an additional revenue stream.

Tax services

Incorporating tax services into a platform can simplify complex financial tasks for customers. For example, an e-commerce business may calculate local taxes automatically during the checkout process. Businesses that operate in multiple jurisdictions will find this feature helpful for compliance purposes. Customers will appreciate the simplicity of automatic calculations, which in turn can lead to increased sales and a lower drop-off rate.

The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accurateness, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent attorney or accountant licensed to practice in your jurisdiction for advice on your particular situation.

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