Embedded Finance Examples: Real-World Use Cases Across Industries

The embedded finance market is projected to reach $320 billion in revenue by 2026, fundamentally changing how consumers and businesses access financial services. Rather than visiting a bank or downloading a separate app, users now complete loans, make payments, and buy insurance without ever leaving the platforms they already use daily.

Embedded finance refers to the integration of payments, lending, insurance, and investments directly into non-financial apps like ride-hailing services, e-commerce stores, and productivity tools. This article walks through concrete examples of embedded finance across industries—from Uber and Shopify to Apple Pay and beyond—so you can see exactly how these integrations work in practice.

What is embedded finance? (quick definition + core components)

Embedded finance is the seamless integration of banking services, payments, lending, insurance, and investing directly into non-financial digital experiences. Instead of redirecting customers to a bank’s website or a third-party app, platforms keep users inside their own ecosystem to complete financial transactions.

When you pay for a rideshare without pulling out your wallet, apply for a loan inside an e-commerce checkout, or buy travel insurance while booking a flight, you’re experiencing embedded financial services. The entire process happens within the original app or website, eliminating friction and keeping customer engagement high.

The most common types of embedded finance include:

• Embedded payments: Storing payment methods and processing transactions within apps
• Embedded lending: Offering credit, installment plans, or working capital inside purchase flows
• Embedded banking: Providing account-like features such as balances, cards, and payouts
• Embedded insurance: Presenting coverage options at the point of sale or booking
• Embedded investments: Enabling stock purchases, savings, or portfolio management within everyday apps

These capabilities are powered by APIs and Banking-as-a-Service (BaaS) providers that allow retailers, SaaS companies, and digital platforms to plug in regulated financial services without building banking infrastructure from scratch. Licensed financial institutions handle the compliance and risk management behind the scenes, while the host platform manages the customer experience.

How embedded finance works behind the scenes

Picture a customer ordering dinner through a food delivery app. They tap their order, confirm their address, and hit “Pay.” Within seconds, the transaction is authorized, the restaurant is notified, and the driver is dispatched. The customer never sees the complexity underneath—the payment processing, fraud checks, and settlement happening in real time.

This seamless experience relies on a layered architecture. At the front end sits the platform the customer interacts with—the app or website. Behind it, an embedded finance enabler connects the platform to financial infrastructure through APIs and software development kits. At the deepest layer, traditional financial institutions or licensed partners handle the regulated activities: holding funds, issuing credit, underwriting insurance, or executing trades.

The magic happens in the data flows between these layers:

• Transaction data moves from the platform to payment processors for authorization
• KYC and AML checks verify customer identity in the background
• Risk scoring models assess credit risk for lending decisions
• Settlement systems move money between buyers, sellers, and the platform

Regulatory and compliance considerations shape every step. Payment processing must meet PCI DSS standards. Lending requires adherence to local credit regulations. Insurance offerings need licensed underwriters. These constraints explain why most non-financial platforms partner with embedded finance companies rather than building everything themselves.

Embedded payments: everyday examples

Embedded payments are the most visible form of embedded finance, letting users pay inside apps with stored payment details or digital wallets. Every time you complete a purchase without entering card numbers or getting redirected to a bank portal, you’re using embedded payment technology.

This section covers real-world examples across ride-sharing, e-commerce, food delivery, and streaming—each demonstrating how embedded payments reduce friction and improve customer experience.

The benefits are measurable: retailers report 20-30% higher conversion rates when checkout friction decreases, and platforms see stronger customer loyalty when payment capabilities become invisible.

Consider the difference between traditional and embedded payment flows. Before embedded payments, an online checkout process might involve entering card details, waiting for a redirect, completing 3D Secure authentication on a separate page, then returning to the merchant site. After embedded payments, the same purchase happens with a single tap—payment method stored, authentication handled via biometrics, confirmation displayed instantly.

Ride-sharing and mobility apps

Uber and Lyft transformed transportation by embedding payments into their core experience. When a ride ends, the fare is automatically charged to a stored card, bank account, or digital wallet. No cash changes hands, no card swipes required.

Before these apps existed, taxi rides often ended with fumbling for cash, waiting for card machines, or arguing over fares. Now the financial transaction is nearly invisible—improving safety for drivers (less cash on hand) and convenience for riders (no payment friction at the end of a journey).

The same embedded payments infrastructure handles tipping, split fares with friends, and loyalty rewards. Everything stays within the app, keeping the entire process unified. Riders can add multiple payment methods, set default cards, and receive receipts automatically—all without visiting a bank or third-party payment site.

Beyond basic transactions, this transaction data opens doors for additional embedded financial services. Ride-sharing platforms now offer drivers debit cards linked to their earnings, instant payouts instead of weekly deposits, and savings tools. The embedded finance platform knows a driver’s income patterns, enabling personalized offers that traditional banks couldn’t match.

E-commerce and marketplaces

Amazon’s one-click purchasing, launched in the late 1990s, pioneered the embedded payments concept. By storing payment details and shipping addresses, Amazon collapsed the online checkout process into a single button. The patent expired in 2017, and the concept has since spread across e-commerce platforms worldwide.

Shopify-based stores embed checkout, card vaulting, and support for digital wallets like Apple Pay and Google Pay directly into product pages. Customers shopping online can complete purchases without leaving the merchant’s site, dramatically reducing cart abandonment.

Embedded payments help merchants in several ways:

• Higher authorization rates through optimized payment routing
• Subscription billing handled automatically for recurring products
• Multi-currency support for international customers
• Saved payment methods that enable faster repeat purchases

In marketplace scenarios like Etsy or eBay, embedded payments handle both sides of the transaction. Buyers pay through the platform, sellers receive payouts to their linked accounts, and the marketplace takes its fee—all processed through the same embedded infrastructure. This two-sided flow would be nearly impossible to manage without APIs connecting payment rails, bank transfers, and platform accounts.

Food delivery, streaming, and on-demand services

Apps like DoorDash and Deliveroo store payment services and enable one-tap reorders. A customer can schedule deliveries, add items to favorites, and pay automatically without re-entering any details. This frictionless approach increases order frequency—fewer steps mean more spontaneous purchases.

Subscription services demonstrate another embedded payments pattern. Netflix, Spotify, and dozens of streaming platforms handle recurring billing entirely within their ecosystems. Users sign up, add a payment method once, and renewals happen monthly without intervention. Failed payments trigger automatic retry logic and customer notifications—all handled by embedded payment processing infrastructure.

These platforms also embed upsell payments seamlessly. Adding premium tiers, purchasing add-ons, or extending subscriptions happens with a tap. The stored payment method handles the charge instantly, removing the decision friction that might cause customers to reconsider.

The business impact is substantial. Reduced friction increases customer lifetime value, with some platforms reporting that customers who save payment methods order 30-40% more frequently than those who enter details manually each time.

Embedded lending and financing: BNPL, POS credit, and working capital

Embedded lending makes credit available inside non-financial journeys—at online checkout, during B2B procurement, or within SaaS billing dashboards. Instead of applying to a bank separately, business customers and consumers access financing exactly when they need it.

Global buy now pay later volumes surged in the early 2020s, with providers partnering with major retailers across the US, Europe, and Asia-Pacific. The COVID-19 pandemic accelerated adoption as online shopping exploded and consumers sought flexible payment terms.

The key benefits of embedded lending include:

• Instant credit decisions (often under 30 seconds)
• Higher average order values for merchants
• Access to financing for users who avoid traditional credit cards
• Underwriting powered by transaction history and behavioral data

Credit scoring models used in embedded lending often leverage platform data that traditional banks don’t see. A merchant’s sales history, chargeback rates, and customer reviews can inform lending decisions faster and more accurately than traditional credit bureau scores alone.

Buy Now, Pay Later at checkout

BNPL options now appear at checkout on fashion, electronics, and home goods websites worldwide. A customer purchasing a $300 pair of sneakers can split the purchase into four interest-free installments of $75, paid over six weeks.

The entire process—eligibility check, approval, repayment schedule display—happens within the retailer’s website or app. The customer never leaves the checkout page. Financial data flows through APIs to the BNPL provider, which runs a soft credit check, approves the plan, and returns the terms in seconds.

Major global retailers began rolling out BNPL at scale between 2019 and 2021, driven by partnerships with providers like Klarna, Afterpay, and Affirm. The e-commerce boom during the pandemic accelerated adoption across categories from apparel to travel.

For merchants, BNPL drives conversion and larger cart sizes—retailers report 20-30% increases in average order value when BNPL is available. For customers, the appeal is budget flexibility without credit card interest or applications.

Micro case study: A customer adds a $400 jacket to their cart on a fashion retailer’s site. At checkout, they see an option to “Pay in 4.” Clicking it triggers an instant eligibility check using their email and basic details. Within 10 seconds, they’re approved for four $100 payments. They complete checkout, pay the first installment immediately, and receive the jacket. The remaining three payments are automatically charged to their card every two weeks.

Point-of-sale financing in retail and consumer electronics

Large retailers in furniture, home improvement, and electronics embed longer-term financing directly into checkout—both online and in physical stores. These point of sale financing options typically offer 6, 12, or 24-month payment plans for bigger purchases.

Consider a customer buying a $1,200 laptop. On the product page, they see “As low as $100/month for 12 months.” Clicking the offer opens an embedded application that captures basic information. Real-time APIs connect the retailer’s system with a lending partner, returning approval and terms in seconds.

The customer journey looks like this:

• Select the laptop and add to cart
• Choose “12-month financing” at checkout
• Enter name, income, and last four digits of SSN
• Receive instant approval with monthly payment amount
• Complete purchase with first payment

These offers are often white-labeled under the retailer’s brand. Customers might see “Store Name Financing” without realizing a separate financial institution is handling the credit. This creates a seamless experience while licensed financial institutions manage the regulatory requirements and credit risk.

Embedded working capital for small businesses

Payment processors, e-commerce platforms, and gig-work marketplaces now offer small business owners financing directly inside their dashboards. Rather than applying to a bank, merchants receive pre-qualified offers based on their platform activity.

Shopify Capital exemplifies this model. An online seller with 12 months of sales history might log into their Shopify dashboard and see an offer: “You’re eligible for up to $25,000. Repay as a fixed percentage of daily sales.” There’s no lengthy application, no collateral requirements, no waiting weeks for decisions.

The underwriting relies on observed platform data:

• Historical sales volume and trends
• Chargeback and refund rates
• Seasonality patterns
• Customer concentration and repeat purchase rates

Toast Capital offers similar embedded working capital to restaurants through its POS system. Amazon Lending extends credit lines to third-party sellers based on their marketplace performance. In each case, the platform’s transaction data enables faster, more accurate underwriting than traditional bank applications.

This type of funding launched at scale in the mid-to-late 2010s and has expanded across the US, Europe, and other regions. For platforms, it creates an additional revenue stream through interest and fees. For small business owners, it provides cash flow financing precisely when they need it—often within hours rather than weeks.

Embedded banking and digital wallets

Embedded banking offers account-like features—balances, stored value, cards, and payouts—inside non-bank platforms. A marketplace seller might see their earnings accumulate in a platform “balance” and spend those funds using a platform-branded debit card, all without opening a separate bank account.

This is typically powered by licensed banks and BaaS providers working behind the scenes. The host platform controls the front-end experience while the banking partner handles regulatory requirements like funds safeguarding, KYC for account holders, and card scheme compliance.

Practical examples of embedded banking include:

• Digital wallets storing funds and payment methods
• Platform balances for gig workers and marketplace sellers
• Branded debit cards issued through non-bank platforms
• Instant payouts to linked accounts or cards

Digital wallets inside super-apps and mobile devices

Super-apps in Southeast Asia and Latin America bundle ride-hailing, food delivery, bill payments, and peer-to-peer transfers under one wallet balance. Users add funds once and spend across multiple services without repeated payment entries.

Apple Pay and Google Pay function as embedded wallets on smartphones. Users store cards from multiple banks in a single interface, then pay in apps, online, or via NFC at physical terminals. The wallet handles tokenization (replacing real card numbers with secure tokens), device-based security, and biometric authentication.

Adding a card to Apple Pay takes about 30 seconds:

1. Open the Wallet app
2. Tap the “+” button
3. Scan the card or enter details manually
4. Verify with the card issuer via text or app
5. Start using the card for contactless payments

These wallets increasingly blur lines between finance and daily life. Users can store transit passes for subways and buses, event tickets, loyalty cards, and even car keys. The embedded finance infrastructure enables all of these to coexist in one place, accessible with a tap.

Platform accounts for sellers, creators, and gig workers

Marketplaces for crafts, freelance work, and ride-sharing provide in-platform balances where earnings accumulate in near real time. A driver completing a ride sees the fare added to their balance immediately, rather than waiting for a weekly bank transfer.

Options for accessing funds have expanded dramatically:

• Standard payout to a linked bank account (1-3 business days)
• Instant payout to a debit card (minutes, for a small fee)
• Spending directly from the platform balance using a virtual or physical card
• Transfer money to other platform users

Platforms report 15-25% higher driver retention when offering instant payouts versus weekly pay cycles. The embedded banking infrastructure—connecting real-time payment rails with platform accounts—makes this possible.

Some platforms go further, offering budgeting tools, tax estimators, and savings “buckets” inside the same interface. A freelancer might see estimated quarterly tax obligations calculated automatically based on their earnings, with the option to set aside a percentage in a dedicated savings account.

Embedded insurance across travel, retail, and platforms

Embedded insurance is coverage offered at the point of purchase or usage of another product, without requiring customers to visit an insurance company website or office. The insurance options appear contextually—trip protection during flight booking, device coverage during phone purchase, income protection during gig work sign-up.

Underwriting and policy issuance happen behind the scenes. An insurer assesses risk and issues policies through API connections, while the front-end offer appears as a simple checkbox or toggle in a shopping cart or booking flow.

User benefits include:

• Contextually relevant offers (coverage matches what you’re buying)
• Faster purchase (no separate applications)
• Fewer forms to fill out
• Policy documents accessible through familiar platforms

Travel booking and ticketing platforms

Airline and online travel agency websites embed trip cancellation and medical coverage at checkout. A traveler booking a round-trip flight from New York to London sees an offer: “Protect your trip for $45” with a brief description of what’s covered.

Clicking “Add protection” adds the policy to the booking. The traveler completes checkout, and policy documents arrive via email alongside their flight confirmation. If they need to file a claim later, they can often do so through the same booking portal rather than navigating a separate insurer’s website.

British Airways and other major carriers bundle travel insurance directly into their booking flows. Dynamic pricing can adjust coverage costs based on destination (higher for certain countries), trip length, and traveler age—all calculated in real time through APIs connecting the booking system with insurance underwriters.

This embedded approach increases policy sales dramatically. When insurance is offered at the moment of relevance (booking a trip), conversion rates are significantly higher than when customers must seek out coverage separately.

E-commerce product protection and extended warranties

Online retailers selling electronics, appliances, and high-value goods embed extended warranties and accidental damage protection on product pages and in carts. A customer purchasing a $1,000 smartphone sees an offer: “2-year protection plan—$89.”

The protection is underwritten by a specialist insurer but branded within the store’s experience. If the phone screen cracks in month 14, the customer files a claim through the retailer’s app or website. They never need to log into an insurance industry portal or mail paper forms.

Embedded insurance can also cover:

• Shipping loss or damage from order placement through delivery
• Theft protection for high-value items
• Accidental damage from drops, spills, and other mishaps
• Mechanical breakdown beyond manufacturer warranty

For retailers, these offerings create incremental revenue while building customer trust. Knowing that a purchase is protected reduces buyer hesitation, particularly for expensive items. The insurer handles claims processing, but the retailer gets credit for providing the peace of mind.

Insurance and protections for gig and platform workers

Some ride-hailing, delivery, and freelancer platforms embed income protection, accident coverage, or health benefits directly into their apps. A courier can opt into per-delivery insurance coverage, with premiums deducted automatically from earnings.

This usage-based approach enables micro-duration policies triggered by app events. When a driver goes “online” for shifts, coverage activates. When they log off, coverage pauses. The financial operations happen automatically—no separate premium payments, no annual renewals.

This pattern has grown with the platform economy since the late 2010s, particularly in regions with large gig-work populations. Platforms offering embedded protections can retain customers better while helping workers access coverage that traditional employment might otherwise provide.

For example, a delivery driver might see an offer in their app: “Injury protection—$0.25 per delivery.” Opting in means that each completed delivery triggers a small deduction and corresponding coverage. If they’re injured while working, they can file a claim through the same app they use for deliveries.

Embedded investments and wealth tools

Investments are no longer limited to standalone brokerage accounts. Many apps now embed investing into banking, commerce, or savings experiences. Users can buy stocks, build portfolios, and track performance without downloading separate financial apps or visiting a broker’s website.

Commission-free trading and micro-investing gained traction from around 2015 onward, especially among younger demographics comfortable with digital platforms. Embedded investing features can live inside banking apps, neobanks, rewards programs, or even payroll platforms.

Regulatory considerations shape these offerings. Securities licensing, suitability requirements, and disclosure rules apply even when investments are embedded in non-financial apps. Most platforms partner with licensed broker-dealers who handle the compliance while the host app manages the customer journey.

Trading and investing within everyday apps

Cash App, originally a peer-to-peer payment app, now lets users buy stocks and Bitcoin directly from the same interface used for sending money to friends. Revolut embeds stock, ETF, and cryptocurrency trading alongside its banking features.

A typical embedded investing workflow:

1. User opens their banking or payments app
2. Navigates to an “Invest” or “Stocks” tab
3. Browses available securities or searches for a specific company
4. Enters an amount—as little as $1 for fractional shares
5. Confirms purchase with a tap
6. Tracks performance in the same app over time

Behind the scenes, embedded finance infrastructure handles order routing to exchanges, custody of shares, regulatory reporting, and tax documentation. The user sees a simple, consumer-friendly interface while licensed broker-dealers manage the complexity.

Some platforms add social features to increase engagement: watchlists shared with friends, news feeds about held stocks, or the ability to copy investment strategies from other users. These features keep users returning to the app, deepening customer relationship and increasing platform stickiness.

Round-up and micro-investing features

Round-up investing transforms everyday spending into automatic investing. When a user makes a purchase—say, a $3.60 coffee—the app rounds up to $4.00 and invests the $0.40 difference into a pre-selected portfolio.

Over time, these small amounts accumulate. A user making 30 purchases per month at an average round-up of $0.50 would invest $15 monthly without any deliberate action. After a year, that’s $180 plus any investment returns.

This pattern has been widely adopted since the late 2010s in markets like the US, UK, and Australia. Apps connect transaction processing (seeing each purchase), portfolio management (selecting investments), and recurring micro-transfers (moving the round-ups) seamlessly within one interface.

For users, round-up investing requires minimal behavioral change. They don’t need to remember to invest or make deliberate decisions about amounts. The embedded finance infrastructure handles everything automatically, turning financial processes that once required active management into passive wealth-building.

Other emerging embedded finance examples

Beyond payments, lending, and insurance, embedded financial products are appearing in unexpected places. Bill payments, tax services, identity verification, and currency exchange are all being integrated into apps where customers already spend time.

These newer categories may not be as visible as BNPL or digital wallets, but they’re removing friction from everyday money management and financial control for both consumers and businesses.

Embedded bill payments and subscription management

Utility apps, neobanks, and super-apps allow users to pay electricity, water, internet, and mobile bills directly from unified interfaces. Instead of logging into five different utility portals, customers handle all supplier payments in one place.

Common features include:

• Automatic debits on due dates
• Reminders before bills are due
• Bill history and spending analytics
• One-tap payment for recurring charges

Some apps go further with subscription management. Users can view all their recurring charges—streaming services, gym memberships, software subscriptions—in a single dashboard. They can cancel unwanted subscriptions, get alerts about price increases, or see when free trials are ending.

For businesses, embedded bill payments reduce administrative burden and improve cash flow predictability. For consumers, the convenience of managing all financial transactions in one place builds loyalty to the platform offering it.

Identity verification and fraud prevention as embedded services

Identity verification and fraud checks are critical embedded finance components, integrated into onboarding and checkout flows across industries. These services run behind the scenes, often invisible to users while protecting both platforms and customers.

A user opening an account inside a budgeting or investment app might capture an ID document with their phone camera, take a selfie, and complete verification in under a minute. AI-powered systems compare the document to the selfie, check databases for fraud signals, and return a pass/fail result—all through APIs connecting the app to identity verification providers.

For payments, transaction risk-scoring runs continuously. Each card payment, ACH transfer money request, or instant payout is assessed for fraud indicators. Suspicious transactions can be flagged, blocked, or stepped up for additional authentication.

Strong identity checks improve trust across the ecosystem. Platforms with robust verification experience fewer fraudulent accounts. Customers gain confidence that their accounts are protected. The embedded approach means this security doesn’t add friction—users complete verification once and transact freely afterward.

Embedded currency exchange and cross-border payments

Global e-commerce sites and travel apps show prices in local currencies and handle FX conversion during checkout. A customer in Germany shopping on a US-based website sees prices in euros and pays without calculating exchange rates or worrying about foreign transaction fees.

Some digital wallets allow users to hold balances in multiple currencies. A freelancer in Europe paid by a US company receives USD into their wallet, then converts to EUR instantly when ready—often at better rates than traditional bank transfers would offer.

Example scenarios:

• A UK customer buys from a Japanese retailer and pays in pounds, with FX handled invisibly
• A digital nomad holds USD, EUR, and GBP in one wallet, converting as needed
• A small business receives payments in multiple currencies and consolidates to their home currency weekly

Embedded FX capabilities help technology providers and platforms expand internationally. A marketplace can accept buyers and sellers from dozens of countries without building complex banking relationships in each jurisdiction. The embedded finance partners handle currency conversion, compliance, and settlement behind the scenes.

How businesses can start offering embedded finance

Embedded finance represents an opportunity for platforms, marketplaces, SaaS products, and brands to deepen customer engagement and unlock new revenue streams. Adding financial services to your core product can increase customer lifetime value, create switching costs, and open additional monetization paths.

Three main approaches exist for companies looking to offer embedded finance:

1. Partner with embedded finance platforms: Work with turnkey providers who offer pre-built solutions for payments, lending, or banking
2. Use BaaS providers: Connect to Banking-as-a-Service infrastructure that provides regulated capabilities via APIs
3. Build custom integrations: Partner directly with banks and insurers for tailored solutions

For most non-financial companies, partnering and using APIs is faster and cheaper than building regulated infrastructure from scratch. A company can launch embedded payments in weeks rather than the years it would take to obtain banking licenses.

Key decision factors to consider:

• Target customers: Are you serving retail customers, small business owners, or enterprises?
• Regulatory footprint: Which countries do you operate in, and what licenses are required?
• Risk appetite: Are you willing to take balance sheet risk, or prefer a referral model?
• Product set: Do you need payments only, or the full spectrum of financial tools?

Steps to get started:

• Define your embedded finance use case based on customer pain points
• Evaluate potential partners based on product fit, compliance support, and geographic coverage
• Design UX that makes financial features feel native to your platform
• Ensure compliance with relevant regulations (payment licensing, lending rules, insurance requirements)
• Launch with a pilot, measure customer adoption, and iterate

The future: where embedded finance examples are heading next

Embedded finance is moving from single-point features—like one-click payments or checkout BNPL—to comprehensive financial ecosystems inside non-financial platforms. The distinction between “financial” and “non-financial” companies is blurring as software platforms take ownership of more of their customers’ money management needs.

Trends shaping the late 2020s include:

• Deeper personalization: Platforms using behavioral and transaction data to offer tailored credit limits, insurance premiums, and investment recommendations
• B2B expansion: Embedded finance spreading into procurement, payroll, logistics, and supplier payments—areas where transaction volumes dwarf consumer applications
• Real-time payments: Instant settlement replacing batch processing, enabling same-day payouts and just-in-time financing
• Digital assets: Tokenized securities and blockchain-based payments finding their way into embedded finance stacks

Analysts project the embedded finance market will grow into a multi-hundred-billion-dollar industry by the early 2030s, driven by improved infrastructure and rising consumer expectations. The 70% of consumers who already prefer in-app financing will likely demand it as a baseline feature.

The examples covered in this article—from ride-sharing payments to micro-investing—demonstrate that embedded finance is already reshaping customer interactions with everyday platforms. But these are just the beginning. As APIs mature and regulatory frameworks adapt, new models will emerge in categories we haven’t imagined yet.

For product managers and business leaders, the opportunity is clear: identify where financial friction exists in your customer journey, and explore how embedded finance solutions can eliminate it. The platforms that succeed will be those that make financial services invisible—so seamlessly integrated that customers never think about the finance, only about the value they’re receiving.