The Rise of Embedded Finance: How Non‑Financial Brands Offer Financial Products

**Introduction: What Is Embedded Finance?**

Embedded finance refers to the integration of banking and financial services into non‑financial platforms such as e‑commerce sites, ride‑sharing apps, and retail loyalty programmes. Instead of referring users to a separate bank or lender, these platforms offer payment, lending or insurance directly within the user experience. This removes friction, increases conversion rates and gives brands greater control over the customer journey.

**Why Embedded Finance Is Booming**

The overall fintech market is expanding rapidly; the global fintech market was valued at about $280 billion in 2025 and is forecast to reach $1.38 trillion by 2034【321787672961870†L88-L114】. Within this market, embedded finance is a standout trend—research suggests embedded finance will grow by 148% by 2028, making it one of the fastest‑growing segments【321787672961870†L164-L171】. Consumers are also increasingly comfortable with fintech; surveys show 88% of Americans now use a fintech product, up from 52% in 2020【811120649643597†L178-L183】. These trends mean customers expect seamless, integrated financial services.

**Benefits for Brands**

• **New revenue streams and loyalty** – By offering payments, buy‑now‑pay‑later or insurance directly, companies earn fees and interest while increasing customer stickiness.

• **Enhanced customer experience** – Embedded finance removes friction at checkout and simplifies onboarding, resulting in higher conversion rates and stronger satisfaction.

• **Deeper data insights** – Integrating payments provides richer data on customer behaviour and spending patterns.

• **Speed to market** – Using a white‑label platform avoids the cost and complexity of building banking infrastructure; vendors handle compliance, security and scalability.

• **Compliance and security** – Working with a regulated provider ensures that KYC, AML and data security requirements are met.

**Key Use Cases**

• **Integrated checkout** – Retailers and marketplaces embed card payments, digital wallets or bank transfers directly into their apps for one‑click purchases.

1. • **Buy Now Pay Later (BNPL) and loans** – Platforms offer short‑term instalment loans at checkout, increasing average order values without the need for separate credit providers.

2. • **Insurance and guarantees** – Ride‑sharing and travel apps bundle micro‑insurance or trip guarantees to reduce risk and increase trust.

3. • **Loyalty and rewards** – Payment cards linked to loyalty programmes and branded wallets drive repeat purchases.

**Getting Started**

• **Select a trusted infrastructure partner** – Choose a regulated provider with an established banking licence, strong compliance programme and robust APIs to ensure reliability.

• **Focus on user experience** – Design flows that make payments invisible, not intrusive. Keep identity verification quick and intuitive.

• **Ensure data security and compliance** – Work with partners that provide built‑in KYC/AML and PCI‑DSS compliance.

• **Plan for scalability** – As adoption grows, your infrastructure must handle increased transaction volumes without latency.

**Conclusion**

Embedded finance allows any company—from e‑commerce to transportation—to become a financial services provider. With consumers embracing fintech at record levels, now is the time to integrate payments, lending and insurance into your product. **Brainbaby Labs** offers the white‑label infrastructure you need to launch quickly, comply with regulations and build any missing features for your unique use case. Contact us to start embedding finance into your customer journey.