The advent of Embedded Finance and the resulting increase in revenues.


Embedded finance is gaining more and more popularity among not financial companies  because it allows them to incorporate inside them original financial solution, like e-commerce platforms’ new payment methods and it brings multiple benefits both to end users, who will be offered greater convenience, faster transactions and savings in time and effort, and to the companies that use it.

This has been spreading since the enactment of the second European Payment Service Directive (PSD2), that made a new fundamental technology for open banking like API (application programming interface) develop and use possible.

Thanks to this innovation, according to a study conducted by the British business Juniper Research called “Revolutionizing fintech with embedded finance”, the revenues coming from this finance’s service will rise by 182% before 2027, from 65 billion to 183 billion.

As a consequence of this increase, in Jupiter’s researchers’ opinion, embedded payment providers’ revenue should also rise by 84%, passing from 32 billion to 65 billion before 2027, contributing to the decrease of people who use cards to pay on e-commerce.

This new type of finance will be beneficial mostly for b2b companies, whose purchases and supplies take place with complicated processes, because it provides a secure and intuitive way to make payments.

Although, this “financial revolution” has only just begun, embedded finance can already be seen as the future of financial services.