Embedded payments are rapidly becoming a key component of the digital economy, allowing businesses to integrate financial services directly into their websites, mobile apps, and software platforms. Rather than directing customers to separate banking or payment providers, companies can now offer seamless payment, banking, lending, and card services within their existing user experiences. According to recent research from OpenPayd, interest in embedded payments and embedded banking solutions is accelerating across Europe as organizations seek faster time-to-market, greater flexibility, and more personalized customer experiences. As open banking initiatives continue to mature and API-driven financial services become more accessible, embedded finance is poised to transform how businesses deliver and monetize financial products.
If you are not familiar with the term, “embedded payments,” it typically If you are not familiar with the term, “embedded payments,” it typically refers to financial service products that are integrated into traditionally non-financial anchor platforms such as merchant mobile apps, websites, or desktop applications. . Those seeking to embed a finance application can partner with fintechs that communicate through APIs and SDKs to deliver a financial service experience.
According to a new report from OpenPayd, 96% of European companies surveyed said they were planning to offer embedded payments to customers in the next five years, or are seriously considering doing so, while 94% reported the same interest in an embedded banking product. Given the origination of Open Banking from PSD2 and the UK’s Open Banking Standard, it makes sense that European companies are highly interested in leveraging products that take advantage of the new regulatory environment. Embedded finance products promise a quick speed to market, flexibility, and an abundance of customizability options to customers.
Mercator Advisory Group recently published a report on a specific embedded finance product called “Credit Card as a Service” that looks deeper into the overall credit market and how organizations are responding to rapidly changing consumer demands.
Overview by Ben Danner, Research Analyst at Mercator Advisory Group