Everything you need to know about embedded finance
Have you ever bought something online and seen the option to “Pay in 3 installments” right on the checkout page? Or maybe you’ve bought travel insurance when booking your plane tickets? If so, you’ve experienced embedded finance, often without even knowing it.
Embedded finance refers to the seamless integration of financial services (payment, credit, insurance, bank accounts, etc.) into a non-financial customer experience. In other words, it is no longer up to the customer to seek out finance, but for finance to come to them.
And this quiet revolution is changing everything.
Much more than a technological trend, embedded finance is redefining customer journeys, accelerating purchasing decisions, and opening up new growth opportunities for fintechs that are able to adapt quickly.
I. Understanding Embedded Finance: More Than a Trend, a Profound Evolution
Behind this transformation lies a technological foundation: APIs. They enable platforms to communicate with each other, paving the way for the seamless integration of financial services into a variety of digital journeys.
Some concrete examples:
- BNPL (Buy Now, Pay Later), integrated directly into e-commerce sites.
- Built-in insurance, offered at the time of purchase of a product or service (e.g., extended warranty, trip cancellation).
- Invisible payments, as in the Uber or Amazon Go apps, where you no longer consciously “pay.”
- Banking as a Service (BaaS), where non-bank brands offer white-label accounts or cards.
Why now?
The rise of open banking, the massive digitization of usage, and consumers who are increasingly demanding simplicity and immediacy in services.
II. A Major Impact on the Customer Experience: Fluidity, Relevance, Personalization
Elimination of friction
No need to redirect the user to another interface: everything is done at the right time, in the right place.
Contextual relevance
Proposer un crédit logement au moment de la signature du compromis, ou une solution de financement pour une formation directement sur le site de l’organisme : c’est plus logique, plus efficace.
Hyper-personalization
Thanks to data (often contextual), offers are tailored to the customer, improving conversion rates… and satisfaction.
Loyalty and inclusion
A seamless experience builds loyalty. And by making services available directly within existing journeys, we also reach audiences that have historically been excluded from traditional financial services.
III. Challenges and Roadmap for the Future
The potential is immense, but it comes with several challenges:
- Security and compliance: Integration must never compromise data confidentiality and compliance (GDPR, PSD2, etc.).
- Choosing the right partners: Not all ecosystems are created equal. Strong alliances are essential.
- Technological excellence: Being integrated also means being reliable, fast, and easy to implement.
- Maintaining customer transparency: Even if the service becomes invisible, trust must remain visible.
Conclusion
Embedded finance is a groundswell. It is redefining the relationship between consumers and financial services. Above all, it is creating a world where the right financial service appears at exactly the right moment, effortlessly and seamlessly.
What about you? How do you imagine your future financial services? Have you ever benefited from an embedded solution without even realizing it?
Share your experiences and expectations—the discussion is open!
To go further:
Reports and Reference Studies:
Trend Watch – October 2023 (Société Générale): View the report (PDF)
Embedded Finance, a new growth driver (Aria): Read the article
Embedded finance: opportunities and challenges (Allnews.ch – French-language perspective): Read the article
Specialized Blog Articles and Analyses:
8 payment trends to watch in 2025 (Codeur.com): Read the article
New payment methods used by French consumers (CA Mon Commerce – Crédit Agricole): Read the article
Embedded finance: what opportunities and challenges for the future of finance? Watch the video summary
