Embedded finance allows businesses that are not traditional financial institutions to offer financial features inside their products. For example, a shopping app offering built-in payments, a ride-sharing app offering instant driver payouts, or a software platform offering business loans directly to users.
This reduces friction because users can access financial services in the same place they already interact, without switching apps or opening a separate bank account. Companies use embedded finance to improve user experience, increase loyalty, and create new revenue streams.
There are several major categories of embedded finance:
Behind the scenes, licensed financial institutions and API providers handle compliance, banking operations, and risk. This lets non-financial companies offer financial features without becoming banks themselves.
Embedded finance helps users complete financial tasks faster and more conveniently. It also allows businesses to deliver new services, improve customer engagement, and compete more effectively in digital markets.
It removes extra steps. Instead of redirecting users to external banks or payment pages, financial functions appear directly inside the product. This speeds up onboarding, improves checkout completion, and makes financial services feel like a natural part of the workflow.
E-commerce platforms, SaaS companies, marketplaces, mobility apps, and gig-economy platforms are common adopters. They use embedded finance to offer seamless payments, instant payouts, lending tools, or investment features tailored to their users’ needs.
Banks and licensed fintech partners handle compliance, transaction processing, risk management, KYC/AML checks, and regulatory reporting. API providers connect these systems to the business’s platform, enabling financial features without requiring the company to build banking infrastructure.
A food delivery platform offers instant payouts to drivers through an embedded finance partner. Drivers receive earnings immediately inside the app instead of waiting several days for a traditional bank transfer.
FinFeedAPI’s Currencies API supports embedded finance products by providing accurate exchange rates for cross-border payments, multi-currency pricing, and automatic currency conversions inside digital platforms.
