Embedded Finance, Beyond the Hype
Embedded finance promised to put financial products inside every app. A few years on, we share what's actually working, what isn't, and where we're still excited to invest.
A few years ago, the idea was everywhere: every software platform would soon offer payments, cards, lending and accounts. Some of that happened. Much of it turned out to be harder than expected.
What's working
The strongest results come from vertical software with deep customer relationships. When a platform already runs a business's daily operations, adding payments or working capital feels natural, and customers value the convenience.
What's harder than it looked
Lending requires real underwriting expertise. Compliance responsibilities don't disappear because a partner bank is involved. And not every audience needs a new financial product inside every tool they use.
Embedded finance works best when it solves a real workflow problem, not when it's added to boost revenue per user.
Where we're still excited
Infrastructure that makes launching financial products simpler and safer.
Risk and underwriting tools built for platform data.
Vertical platforms where finance is core to the customer's job.
The hype has cooled, and that's a good thing. The builders who remain are focused on real problems, and that's exactly where we want to be.