What Is Embedded Finance? Explained Simply
What is embedded finance? It's when non-financial companies build financial services directly into their own product — seller payouts, payment cards or accounts — so customers never leave the platform they already use.
Transcript
What is embedded finance? Embedded finance is when non-financial companies build financial services directly into their own products or platform.
For example, a marketplace may offer seller payouts, a travel platform may offer payment cards, or a business platform may include accounts and payment services.
Customers can access these services without leaving the platform they already use.
Behind the scenes, a regulated financial institution or a BaaS provider may supply the accounts, cards, compliance, and financial infrastructure.
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About this episode
Embedded finance is when non-financial companies build financial services directly into their own products or platform. A marketplace may offer seller payouts, a travel platform may offer payment cards, and a business platform may include accounts and payment services.
The defining trait is that customers never leave. Instead of being handed off to a bank or a separate provider, they access the financial service inside the product they were already using, as though it were simply another feature.
Someone regulated is still standing behind it. A licensed financial institution or a BaaS provider supplies the accounts, cards, compliance and financial infrastructure underneath — which is the role Demivolt plays for the platforms it works with.
Key takeaways
- Embedded finance is non-financial companies building financial services directly into their own product or platform.
- Examples include marketplace seller payouts, travel platform cards, and business platforms offering accounts and payments.
- Customers use the service without leaving the platform they are already on.
- A regulated institution or BaaS provider supplies the accounts, cards, compliance and infrastructure behind the scenes.
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