Embedded finance: more than simply convenient

Alex Mifsud at Weavr describes how embedded finance has become a business strategy

 

Not every technology trend lives up to its early hype, but embedded finance (EF) may well be one that does. What started as a fringe innovation within fintech has quietly become one of the most transformative developments in modern business infrastructure.

 

In 2023, McKinsey estimated the embedded finance market in Europe at approximately €30 billion, representing around 3% of total banking revenues. At the time, those figures were promising, but still relatively modest. Fast-forward to 2025, and it’s clear we’re no longer dealing in hypotheticals.

 

The same report suggests that by 2030, the market could surpass €100 billion and account for 10% to 15% of European banking revenue pools. Meanwhile, adoption among software platforms is accelerating. In Weavr’s 2023 research, 72% of SaaS product leaders said they planned to embed financial features within a year. By 2025, that figure has jumped to 92% who now say embedded payments will be live on their platform by the end of the year.

 

In other words, we’re not simply watching a niche geeky trend unfold; we’re witnessing a shift in how financial services are distributed, accessed and experienced. And it’s not just FinTechs that are paying attention.

 

 

From function to foundation

It’s tempting to view EF as just another tech-enabled convenience - the ability to issue a payment from within a rideshare app or offer financing in an online checkout. But this interpretation undersells what’s happening.

 

At its core, embedded finance represents a structural change in how financial capabilities are being integrated into the platforms that people and businesses already use every day. It removes the historical separation between financial transactions and business workflows, turning financial services from standalone functions into embedded features.

 

A company using software to manage procurement can now approve budgets, issue virtual cards, and initiate payments all within the same platform. An HR platform can handle not only payroll, but also benefits distribution, reimbursements and employee expense management, seamlessly and in real time.

 

For the customer, typically a small firm using SaaS to run their business, the effect is transformative. Tasks that once required toggling between systems, manual reconciliation or late-night spreadsheet updates are now invisible or, at least, frictionless. Less obviously, the seamless integration of banking within software not only increases productivity but also reduces the scope for expensive financial errors and even internal fraud.

 

For the SaaS business itself, the benefit is equally powerful: increased user engagement, greater monetisation potential, and significantly reduced churn.

 

 

Why 2025 marks a shift

Every transformation reaches a moment when momentum becomes inevitability. For embedded finance, 2025 is that moment.

 

Three forces are converging to accelerate the shift:

 

1. Maturity of the infrastructure. Until recently, embedding financial capabilities into a product meant navigating regulation, licensing, payment schemes and compliance processes - a headache even for well-funded companies. But modern EF platforms now offer modular, pre-regulated components that are productised for easy integration. The complexity has been abstracted into simple, secure APIs and SDKs - for instance, for push provisioning of cards into mobile wallets, or for strong customer authentication via biometrics - that most software businesses are already familiar with using.

 

2. Rising expectations from users. Whether serving individuals or businesses, software users increasingly expect seamless experiences. They don’t want to switch tools for payments, loans, or expense tracking. Just as we now expect maps, messaging and payments to coexist in a mobile app, we are coming to expect complete workflows inside business platforms too.

 

3. Strategic pressure to grow without expanding costs. In the post-2020 boom years, growth at all costs was the norm. But in 2025, product leaders are being asked to do more with less. Embedded finance offers a way to enhance utility and revenue per user without dramatically increasing operating costs or customer acquisition spend.

 

When 92% of SaaS product leaders say embedded payments will be live in their platform this year, they’re not reacting to a fad; they’re responding to a clear commercial and competitive imperative.

 

 

Embedded finance across industries

Although much of the conversation around EF has focused on fintech and SaaS, the relevance is far broader. We’re seeing uptake across multiple sectors, including:

• Logistics: Platforms are embedding invoice factoring and real-time driver payments to support liquidity across fragmented supply chains.
• Healthcare: Software vendors serving private clinics are embedding insurance claim processing and patient financing options, easing administrative overhead and improving patient experience.
• Construction: Project management tools are integrating budget approvals, supplier payments and subcontractor disbursements, helping firms reduce delays and avoid payment disputes.
• Education: Edtech platforms are embedding tuition payment plans and student wallet systems to simplify fee collection and expand accessibility.

In each case, the financial feature is not the product itself. It’s a means to make the product work better for the user, and to anchor the platform more firmly in the daily operations of the customer.

 

 

Building EF into strategy, not bolting it on

One of the most important lessons from the past two years is that embedded finance should not be treated as a feature to bolt on at the end of a roadmap. To realise its full value, it must be designed as part of the broader user experience. Consider it as an intrinsic part of the solution to the business problem, and also as a key aspect of the product architecture.

 

That starts with identifying moments of friction in your existing workflow. Where do users leave the platform to complete a financial action? What is the operational cost of that exit - in time, risk, or customer satisfaction?

 

From there, consider where you want your platform to sit in your customers’ stack. Are you a point solution, or do you aim to become the central control hub for a particular domain?

 

Embedded finance, when implemented thoughtfully, can help move you up the stack - from tool to infrastructure, from optional to essential.

 

 

A note on responsibility

With the power to transact comes responsibility. Embedding financial features means engaging with risk, regulation and customer protection, even if you’re not a licensed financial institution yourself.

 

Fortunately, the ecosystem is catching up. New EF providers offer compliance-by-design models that allow software companies to act confidently within a regulated framework. But it’s essential to choose partners that treat risk management, security and transparency as core capabilities, not afterthoughts.

 

As embedded finance enters the mainstream, designing for managing risk and enhancing trust will be the differentiator.

 

 

Looking ahead

We’re still in the early chapters of the embedded finance story, but the acceleration is clear. The past two years have moved EF from theory to practice. The next two will determine which companies use it to reshape their category, and which ones fall behind.

 

If you’re a business leader exploring how to enhance your platform’s utility, monetisation or retention, now is the time to make EF part of your strategic plan - not just your product backlog. 2025 may well be remembered as the year embedded finance moved from promise to practice, from experiment to expectation.

 

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Alex Mifsud is CEO and Co-founder at Weavr

 

Main image courtesy of iStockPhoto.com and Suebsiri