Embedded Finance – The Intersection of FinTech and BigTech


FinTechs are seamlessly embedding finance in technology to facilitate our day-to-day activities. However, there is a new set of companies which does not identify as FinTechs but embeds financial services in offerings to attract and retain customers. Payment solutions such as Visa, Mastercard, Klarna, Apple Pay, Google Pay, and Amazon Pay and e-marketplace service providers such as Shopify, which earns 59% of its revenue from embedded payment products, are not merely FinTech companies.

Embedded finance is estimated to offer a market opportunity of over $7 trillion by 2030. Embedded insurance is estimated to be a $3 trillion market. 

Embedded finance is the native integration of financial services into a traditionally non-financial service or product.

BigTechs have specialized expertise, thorough knowledge of consumer segments, and networked resources that come along with their investments. By embedding finance in their non-financial services business, they provide their customers access to financial services and payments, often in an invisible, seamless way.

Payments, the first financial service to be embedded into non-financial product experiences, has pervaded digital platforms such as Apple Pay, Afterpay, Paytm, and WeChat. Other financial service …