Embedded finance: Powering seamless business experiences

In today’s digital-first world, expectations have changed. Consumers want everything instantly and at their fingertips. And because those same consumers are also employees, entrepreneurs, and business owners, they increasingly expect the same friction-free experiences in their professional lives too.

If you’re a financial institution, fintech, or a platform provider looking to unlock new growth, deliver seamless customer journeys, or extend financial access in smarter ways, read on. This article explores how embedded finance is transforming business interactions and highlights the key opportunities for each player across the ecosystem.

At the heart of every business interaction lies a fundamental need: the ability to pay and be paid. Yet for many businesses, payments remain fragmented. Multiple systems and manual steps create delays, slow down cash flow, and erode customer satisfaction.

What is embedded finance?

Embedded finance is the integration of financial products and services into non-financial digital platforms, such as software, apps, and business ecosystems. It works in the background, enabling transactions to happen naturally within existing user journeys.

Here’s how it works:

• Financial institutions provide the regulated products, such as payments, lending, or deposits.
• E-commerce platforms or accounting software providers host those services within their user journeys.
• Solution providers sit in the middle, connecting both sides through APIs and open banking technology to ensure integration, compliance, and scalability.

Together, these connections create a faster, more intuitive experience. For instance, accounting software can let SMBs pay suppliers directly, ride-hailing drivers can access earnings instantly, and travel sites can offer insurance at checkout. Embedded finance makes these interactions effortless, removing steps, reducing friction, and building trust.

At Visa, we see this as the next evolution of digital payments. Finance is no longer an add-on but a natural part of the business experience that’s more secure, scalable, and seamless.

As more of the world’s business activity moves online, the boundaries between financial and non-financial services are blurring. Many companies that once built software or marketplaces are becoming gateways to financial experiences. From small businesses managing expenses to platforms facilitating global payments, embedded finance is creating new value at every stage of the digital economy.

The transformation is already underway. Global revenues are forecast to grow by 23.9% annually, reaching US$776 billion by 2029.¹

Evolving customer expectations, regulatory support for open ecosystems, and the commercial advantages for early adopters are driving this growth. Those who act first will define the future; those who hesitate will watch new entrants seize the opportunity.

As embedded finance continues to evolve, three developments are driving the next wave of innovation:

1. Payments are becoming more deeply embedded
   Consumers are more likely to complete purchases when payment options are integrated and personalised within the merchant ecosystem. Brands that own and control their payment process gain loyalty and higher conversion in return.
2. Embedded lending is gaining momentum
   Customers increasingly expect instant credit decisions. Embedded lending delivers on that promise, providing approvals in seconds rather than days and meeting demand for speed and flexibility, particularly in markets underserved by traditional credit models.
3. White-label payment solutions are gaining traction
   Smaller merchants without the scale or budget to build their own embedded capabilities are turning to white-label providers. For financial institutions, this trend opens the door to new partnership models and bundled, value-added offerings.

Together, these shifts point to a future where financial services are no longer standalone but woven into daily business operations.

Embedded finance is reshaping value across the ecosystem. Here’s what each player stands to gain:

Independent software vendors (ISVs)

Embedded finance extends ISV platforms, allowing them to integrate financial services such as payments or lending directly into their software without becoming financial institutions. SMB customers can pay suppliers or reconcile accounts within the platform, eliminating manual steps and improving efficiency. ISVs can also unlock new revenue streams and deepen engagement through value-added experiences that strengthen their position as trusted partners.

Financial institutions (FIs)

Embedded finance opens a new route to scale. Instead of competing solely through their own channels, FIs, such as banks, can integrate their services into third-party platforms, expanding payment volumes, accelerating onboarding, and unlocking new revenue streams. It is also a way to stay relevant in ecosystems increasingly dominated by account-to-account (A2A) and alternative payment rails.

Fintechs

Embedded finance offers greater reach and credibility. By partnering with licensed providers or acting as enablers, fintechs can deliver compliant, in-app payment and lending experiences to larger, established SMBs that already trust their software vendors. Visa’s embedded finance APIs and network support speed, security, and innovation, helping fintechs move quickly while maintaining scale and reliability.

Ultimately, for all groups, embedded finance is about creating smarter ways for businesses to operate through financial tools that feel native, integrated, and value-adding.

At its core, embedded finance is powered by collaboration, bringing financial institutions, fintechs, and platforms together to create new opportunities and deliver greater impact for businesses and their customers. Each plays a distinct yet complementary role in unlocking value. Let’s take a closer look at each below:

Financial institutions (FIs)

Embedded finance creates a pathway to relevance in the digital ecosystems where businesses already operate. Instead of competing for attention through traditional channels, banks can embed payment, lending, or treasury solutions directly into the software customers use every day. This broadens distribution and deepens engagement, keeping banks central to customer workflows. Partnering with platforms and fintechs lets FIs tap into high-volume transaction flows while maintaining compliance, trust, and data integrity. For issuers, it is a chance to capture new payment volumes, expand relationships with SMBs, and future-proof their proposition in a world moving towards integrated, platform-led finance.

Fintechs and enablers

Embedded finance offers reach, scale, and credibility. Acting as the bridge between regulated providers and digital platforms, fintechs can deliver innovative experiences that combine financial utility with simplicity. Whether powering instant lending decisions, virtual card issuance, or white-label payment infrastructure, these providers shape the backbone of modern commerce. Working with partners such as Visa enables them to move faster, build securely, and access global networks that support growth across markets.

Platforms and merchants

Integrating financial services into existing user journeys strengthens loyalty, boosts conversion, and unlocks new revenue streams. For example, an accounting platform that embeds payment acceptance or credit issuance transforms from a tool into a financial hub helping SMBs manage working capital, reconcile transactions, and pay suppliers efficiently. Platforms that achieve this become indispensable, building stronger relationships and standing apart from competitors offering static, disconnected tools.

For end users: businesses and consumers

The biggest impact is on experience. Embedded finance simplifies how businesses and consumers interact with money by reducing manual steps, accelerating access to funds, and creating intuitive, contextual journeys that meet users where they are. From instant disbursements to in-app credit, embedded experiences make finance invisible yet ever-present, helping businesses focus less on processes and more on growth.

In this connected ecosystem, everyone stands to gain. Financial institutions scale reach, fintechs scale innovation, and platforms scale loyalty, while end users benefit from a smoother, more empowering financial journey.