Embedded finance in 2025 is no buzzword; it’s changing the business dynamics of American businesses. By directly embedding financial services like payments, lending, insurance, and investment products into non-financial platforms, companies are improving customer experience, reaching broader markets, and generating new streams of revenue. According to Investopedia, “Embedded finance takes banking and other financial services and puts them in nonfinancial apps and services.”
Certainly, as consumer behavior evolves toward frictionless digital experiences, embedded finance provides pragmatic avenues for innovation across sectors. Here’s a close-up examination of the top 10 embedded finance opportunities transforming U.S. companies in 2025, supported by real-world illustrations and recent data.
1. Embedded Payments within E-Commerce Platforms
Merchants are integrating payment solutions natively into their platforms. This simplifies checkout and also increases conversion. Embedded payments will represent more than $141 billion in transaction value in the US by 2025, according to FinMkt. This presents a chance for companies to minimize friction and enhance customer loyalty.
For instance, Walmart has joined forces with JPMorgan Chase to speed up payments for sellers on its online platform. With this partnership, sellers can better control cash flow using JPMorgan’s infrastructure, improving the seller experience.
2. Embedded Lending for SMEs
Small and medium enterprises tend to have difficulty in getting credit. Embedded lending fixes this by directly placing loan products into platforms used by SMEs. Square and PayPal provide working capital loans in real-time against transaction histories. Embedded lending is estimated by the American Bankers Association to rise by 32% in 2025, fronted by BNPL and invoice financing products for SMBs. In the United States alone, the embedded credit market will grow to $45.74 billion by 2034 from $7.65 billion in 2024, sustained by digitalization and the need for instant credit access.
3. Retail and Travel Embedded Insurance
Firms are embedding insurance products into the checkout process, offering protection for electronics, travel reservations, or purchases. Some firms offer API-based insurance products that can be embedded by retailers at the point of sale, presenting consumers with instant coverage alternatives. Companies like Cover Genius and Zego offer API-driven insurance infrastructure.
Experts anticipate that embedded insurance will grow by 24% annually, with significant adoption in sectors like gig economy platforms and online marketplaces. YouLend reports that embedded insurance will grow by 24% annually, with sectors like gig economy platforms and online marketplaces experiencing the highest adoption.
4. Payroll-Linked Embedded Finance
Payroll-linked embedded finance embeds financial services within payroll systems. It provides facilities like financial wellness tools, earned wage access, and global payments. This strategy streamlines financial processes for both employees and employers. Consequently, it enhances efficiency and convenience in general. Financial services in the workplace are on the increase.
Platforms such as Gusto and DailyPay integrate benefits like early access to wages and savings accounts within payroll platforms. Solaris Group points out that this is among the main trends driving worker retention and financial health, particularly among hourly and gig workers. In 2025, over 50% of payroll software providers are predicted to offer embedded financial benefits.
5. Embedded Banking in B2B SaaS
Embedded banking in B2B SaaS integrates banking services like payments, lending, and banking accounts into software platforms.This does away with the need for users to leave apps. This simplifies business processes, improves user experience, and minimizes administrative work. It also presents new revenue opportunities for SaaS providers while improving customer retention due to increased convenience. For example, accounting platforms such as QuickBooks provide embedded banking through collaboration with fintech providers.
Embedded finance may reach as high as 26% of the global SME banking market by 2025, amounting to almost $124 billion in value. Accenture is forecasting a $92 billion increase in revenue in SMEs through embedded finance by 2025, highlighting the business opportunity for B2B platforms.
6. Embedded Wealth Management in Lifestyle Apps
Lifestyle apps are increasingly embedding wealth management functionality, enabling users to invest passively as part of their day-to-day financial habits. Whether rounding up buys, saving on payday, or diverting savings from budgeting, these applications enable users to accumulate wealth with little effort. This methodology not only enables financial inclusion but also promotes regular investing by seamlessly integrating into users’ current habits.
Acorns and Stash collaborate with lifestyle brands to provide micro-investing tools in third-party apps directly. As this segment is still emerging, Statista forecasts a 19% CAGR in US assets managed by embedded wealth platforms. Assets on embedded wealth platforms in the U.S. will grow at a 19% CAGR due to increasing consumer demand.
7. BNPL (Buy Now, Pay Later) Integration in Vertical Markets
BNPL is extending beyond retail to vertical markets such as healthcare, education, and home improvement. Even B2B industries are considering BNPL as a means of enhancing sales and customer experience.
Finmkt observes that BNPL is increasingly integrated into vertical-specific platforms, providing consumers with access to delayed payment at the point of sale. Healthcare fintech Walnut has integrated BNPL into patient billing systems, showing real-world traction.
8. Embedded Identity Verification in Marketplaces
Embedding identity verification processes directly within non-financial platforms offering financial services is referred to as embedded identity verification under embedded finance. Certainly, Trust and safety are paramount on peer-to-peer and gig economy platforms. Embedded identity verification reduces the complexity of the user onboarding process and enhances users’ access to financial services by mechanizing the verification process.
Integrated KYC and identity verification solutions, such as those of Alloy and Persona, ensure compliance and user safety. The digital identity market is expected to grow to over $70 billion by 2025, with embedded verification solutions being the prime facilitator for frictionless onboarding.
9. Integrated Crypto Wallets in Financial Super Apps
These integrated wallets allow for services such as purchasing, selling, and storing digital assets under one application without having to transition between platforms. Usage of cryptocurrency continues to persist, especially among Gen Z and millennial users. In-built wallets offered by companies such as Coinbase and Robinhood are increasingly being implemented in larger fintech platforms.
As super apps evolve, embedded wallets are beginning to be at the center of an integrated digital finance ecosystem. PYMNTS says 35% of US Gen Z users prefer platforms that have embedded crypto tools, indicating strong demand for hassle-free crypto access.
10. Enterprise Treasury and Cash Management Solutions Embedded
Large businesses are incorporating treasury capabilities like liquidity forecasting, FX management, and yield optimization into their finance platforms. This product allows companies to better manage cash flow, payments, and risk. Treasury Prime and Modern Treasury provide APIs that support these needs. According to McKinsey, embedded treasury solutions are expected to reduce operating costs by up to 20% for mid-market enterprises. Therefore, we can see that Embedded treasury solutions can cut operating costs by up to 20% for mid-sized businesses by streamlining financial tasks and reducing manual processes.
Whether it’s e-commerce platforms embedding payments, gig platforms enabling micro-investments, or B2B software integrating cash flow tools, the opportunity for U.S. businesses is massive. Companies that embrace embedded finance will not only enhance customer satisfaction but also unlock entirely new models for growth and monetization. The future of financial services isn’t about you visiting a bank; it’s about financial services reaching you, wherever you are.
FAQs
1. How can embedded finance help my business improve customer experience and increase loyalty?
By integrating financial services directly into your platform, you offer a seamless, frictionless experience. This allows customers to complete transactions and access financial products without leaving your site. For instance, embedding payments, lending, or insurance options can improve convenience, boost customer satisfaction, and ultimately drive higher conversion rates, as evidenced by platforms like Amazon and Shopify.
2. What are the advantages of adding embedded lending products to my platform?
Offering embedded lending, such as working capital loans or Buy Now, Pay Later (BNPL), provides immediate access to credit for your customers or small businesses. This can increase customer retention and sales, particularly in underserved markets. By embedding lending options within your platform, you make it easier for customers to access credit, which in turn can help grow your revenue. Companies like PayPal and Square have already successfully integrated these services.
3. What is the potential of embedded insurance for businesses, and how can it be integrated?
Embedded insurance offers customers the ability to purchase coverage directly at the point of sale or within an app, whether for electronics, travel, or even health services. By partnering with API-driven insurance providers, businesses can offer real-time, tailored insurance options, driving incremental revenue and also improving customer trust. The embedded insurance market is growing rapidly, with projected annual growth of 24%.
4. How does payroll-linked embedded finance impact employee retention and financial health?
By offering financial wellness tools and early wage access within payroll systems, companies improve both employee satisfaction and retention. Embedding services like savings tools or loans within payroll platforms allows workers, especially in hourly or gig-based roles, to manage their finances better, reducing financial stress and improving workplace morale. This trend is expected to be adopted by more than 50% of payroll software providers by 2025.
5. What are the challenges businesses face when adopting embedded finance, and how can they overcome them?
Adopting embedded finance requires businesses to integrate new technologies, ensure regulatory compliance, and potentially overhaul existing platforms. However, the key challenges, such as data privacy concerns, system compatibility, and navigating financial regulations, can be mitigated by partnering with fintech experts and adopting scalable, secure solutions. Ensuring your platform is flexible and user-friendly will help ease the integration process.
