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Embedded Payments

A method of securely linking and storing payment information for easy access and use with a single touch. They are widely considered the standard for integrated financing and have been adopted by both individuals who have made the transition to digital platforms and those who have grown up with technology.

Embedded buy now, pay later installment plans

Previously, stores offered layaway plans, where customers could make a partial payment on a product they wished to purchase, and the store would hold the item until the buyer could pay the full amount.

Today, there is the option of "buy now and pay later," where customers can take possession of the product and pay for it in convenient installments, often facilitated by mobile payment options.

Embedded Card Payments

Smart cards, virtual cards, or spending cards allow end users to easily transfer funds electronically and make purchases up to the full cash value on the card. These cards offer a secure option as all user information is encrypted. There is a vast array of platforms that offer such cards.

Embedded Lending

The process of obtaining a personal loan is made simple and straightforward with this option, as there are no extensive underwriting procedures or inquiries into one's credit score required. Users can quickly and easily access loans with a single click, bypassing the need for intermediaries and avoiding lengthy processes. This simplifies the process and reduces the reliance on third parties.

Embedded investments 

Many individuals are often unfamiliar with finance, let alone investing, and may feel overwhelmed by the complexity and perceived risks involved. This can prevent them from becoming financially informed and effectively managing their money.

The integration of investment services simplifies the process, allowing users to invest in various markets such as stocks and retirement plans with ease and confidence. By offering a user-friendly experience, individuals are empowered to take control of their financial future.

Embedded insurance

A seamless and integrated solution to insurance needs within the payment experience. Some companies have already implemented this feature, streamlining the process of obtaining insurance coverage for a wide range of activities, from shopping to travel. With embedded lending, there is no longer a need to rely on third-party insurance agents, making the experience more efficient and convenient.

Types of Embedded Finance

What does Embedded Finance mean?

Embedded Finance (EmFi) transforms the dynamics of businesses and consumers, and the way they interact through financial services.

Consumers are currently a key part of this transformation with their daily activities such as ordering takeout, paying for stream training, or buying a book online.

What does it mean?

Banking as a Service is an end-to-end model that uses APIs to facilitate the connection between third parties and digital banks. This helps non-financial companies to improve their user experience and increase profits as they begin to offer customers personalized and integrated banking services.


BaaS is a provision of complete banking processes such as loans, payments, or deposit accounts as a service, using an existing licensed bank's secure and regulated infrastructure.

An example...

To improve customer experience and drive growth, a department store decides to offer banking services. However, acquiring a license to offer such services can be a complex and time-consuming process.

This is where Banking-as-a-Service (BaaS) comes into play. By utilizing BaaS, licensed banks can integrate their digital banking services directly into the offerings of non-banking companies, such as the department store. With BaaS, the department store can offer digital banking services without obtaining its own banking license, streamlining the process and eliminating the need for extensive resources.

Banking as a Service (BaaS)

Some definitions of Embedded Finance

Mckinsey defined embedded finance as the placement of a financial product into a non-financial customer experience journey or platform.

It is a buzzword in the Fintech world, also known as a disruptive force in financial services. 

According to data from The Fintech Times, the integrated finance industry will be worth $7 trillion globally.

Embedded Finance

Embedded finance integrates any financial service or product into a non-financial environment.

We give businesses the tools to unlock growth

The first entirely cloud-based B2B payment banking provider, empowering businesses to own cutting-edge Fintech capabilities.

We power scalable and secure banking and payment solutions for Marketplaces, PSPs, Corporations, FinTechs, Banks, SaaS, Service Providers and Government Platforms. 

With COMO's Embedded Finance Services, your business can

  • Enable your business to own cutting-edge fintech capabilities 

  • Achieve 100% digitalization and carbon neutrality 

  • Save costs through AI-driven automation and increase profits 

  • Easy access to a comprehensive spectrum of global digital financial products & services 

  • Unlock more revenue from existing customers 

  • Regain control of speed, cost and transparency in cross-border transactions 

COMO's Embedded Finance solution

  • Embedded Multicurrency IBAN account issuing

  • Embedded Payments (PayIn & PayOut)

  • Embedded Accounts Receivable and Payables

  • Embedded KYB & AML

Related books

Chris Skinner
Digital Bank: Strategies to Launch or Become a Digital Bank

“Digital Bank tracks the innovations in banking and how the mobile internet is changing the dynamics of consumer and corporate relationships with their banks. The implication is that banks must become digitised, and that is a challenge as becoming a Digital Bank demands new services focused upon 21st-century technologies. Digital Bank not only includes extensive guidance and background on the digital revolution in banking, but also in-depth analysis of the activities of incumbent banks such as Barclays in the UK and mBank in Poland, as well as new start-ups such as Metro Bank and disruptive new models of banking such as FIDOR Bank in Germany”

Luigi Wewege
The Digital Banking Revolution

“Over the past decade, financial service innovations have contributed to a completely new way in which customers can bank, threatening the status quo of traditional retail banks, and redefining a banking model which has been in place for generations. These new technological advancements have facilitated the rapid emergence of digital banking firms and FinTech companies, leading to established banks being forced to swiftly increase their pace of digital adoption to stay relevant and stop mass client attrition to these agile financial start-ups. These threats come at an inopportune time for banks due to mature markets currently experiencing stagnant growth. This coupled with decreasing profit margins due to the competitive pricing of new entrants, and financial customer loyalty becoming ever increasingly more tenuous”.

James Robert Lay
Banking on Digital Growth: The Strategic Marketing Manifesto to Transform Financial Brands.

“If you're part of a financial brand marketing, sales, or leadership team, you know the entire industry is in the midst of exponential change fueled by new technologies…
In Banking on Digital Growth, James Robert Lay unlocks the secrets of digital growth with a strategic marketing manifesto to transform financial brands. You'll gain clarity with a strategic blueprint framed around 12 key areas of focus that empower you to confidently generate 10X more loans and deposits while finally proving the value of marketing as a strategic growth leader—not a cost center”.

Why do we need Embedded Finance?

With the constant growth of digitization in the world also comes the need to solve an easy and secure way the customers’ online needs. 

Embedded finance integrates any financial service or product into a non-financial environment. 

Corporates and SaaS see value in using a single provider for all their financial needs instead of using separate providers, Embedded finance is hailed as a ‘game changer’ for driving eco-conscious behavior. 

The rise of Embedded Finance

The begining

Embedded finance can be tracked backed to 1919 when Ford launched the first car credit product and sold insurance, when making a deal with selling a car.


A lot of the excitement surrounding embedded finance has been around the fact that the development will allow big tech companies to enter the financial services market.


Uber, Airbnb, and other non-financial service providers are examples of how EmFi is penetrating the market by allowing these companies to generate new revenue streams from integrating (embedding) payments as well as banking services (accounts and lending), etc, in their platforms.

Great opportunity

The demand driving the shift toward embedded finance turns EmFi into a multi-trillion market opportunity, which is for the most part attributable to non-financial companies that incorporate new revenue streams from financial services. According to ABN Amro by 2030 it is expected that the EmFi market will be valued at $7.2 Trillion.


According to the recent research published by Juniper Research, revenue from integrated financial services will exceed $183 billion globally by 2027.

Post COVID-19

The market adoption was triggered by e-commerce and digital adoption that have been growing as a storm in the last 15-20 years but it was potentially the COVID-19 pandemic self-isolation, forcing people to find a way to do the groceries, access services, entertainment, and many other activities online. What that meant for the world of finance is that traditional financial services also had to change to reflect that growth in eCommerce, which led to the disruption of the status quo and the rise of Digital financial services and Embedded Finance.

Embedded finance vs. Banking as a Service  

The fintech industry has two related but distinct concepts: Embedded finance and Banking-as-a-Service (BaaS). 

To understand more about these two financial terms and their relation, it is necessary to understand them separately.  

Embedded Finance

An article published by SAP Fioneer, "Embedded Finance vs. Banking as a Service," Discusses the main objective of embedded finance, which is to provide a practical and seamless financial service experience that goes beyond just payments and loans at the point of sale, through three elements: Context, Elimination, and Personalization.  

According to the article, "Context" involves understanding the user's needs through their context and what leads the user to change their decision to solve a problem. The second element is "Elimination," which begins with a recommendation generated after studying the user's needs. The third element is "Personalization," where the user can create a more personalized experience.  

Banking as a Service (BaaS)

BaaS provides APIs and other tools that allow fintech companies to offer banking services, such as account creation, payments, and transactions, without becoming a licensed bank.   

Returning to SAP Fioneer's article, "In other words, BaaS providers facilitate backend banking functions, and BaaS consumers take care of the interface."  

The critical differences between Embedded finance and Banking as a Service.  

While both embedded finance and BaaS involve integrating financial services into non-financial platforms, embedded finance focuses on creating a seamless user experience by providing access to financial services within a specific platform. In contrast, BaaS focuses on enabling fintech companies to offer banking services as part of their product offering without building a banking infrastructure. 

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