Why embedded finance is the future of customer experience — how to get started

If you’re using a spend management platform, wouldn’t you expect to be able to set up corporate cards for your employees directly on it? Or if you’re a creator, how much easier would it be to receive your earnings instantly — or even file your 1099 tax forms — all without leaving your digital platform? 

Today’s users aren’t just looking for convenience; they expect platforms to integrate financial services into their everyday actions seamlessly.

For business leaders, recognizing the opportunities and challenges of embedded finance is essential for keeping pace with evolving customer demands. In fact, according to our research, 78% of enterprise respondents surveyed cited seamless and positive customer experiences as the number one driver of adopting embedded finance. 

What is embedded finance?

Embedded finance integrates financial services — such as payment processing, lending, and insurance — directly into a platform’s existing products or services. It powers features like Buy Now, Pay Later (BNPL) at checkout on eCommerce sites, loan options for small businesses through invoicing software, payouts for marketplaces, and more.  By embedding finance tools, businesses simplify access to financial services, creating seamless, convenient user experiences. This “finance as an experience” approach is gaining significant traction across industries. EY estimates this market could reach $606 billion globally, with $6.5 trillion in payments processed through these channels by 2025.

The value of integrating payments into your software

Embedded finance delivers far-reaching benefits for enterprises aiming to strengthen customer relationships and gain a competitive edge. It makes meeting customers' financial needs easier and even offers the potential to generate new revenue streams.  By embedding these tools into their platforms, businesses can:

• Deepen customer loyalty: Keep users engaged by offering integrated financial tools, making your platform a one-stop solution for their needs.

• Improve efficiency: Eliminate the need for users to rely on multiple third-party apps or services.

• Unlock new revenue streams: Monetize financial features like transaction fees, interchange revenue, and FX markups.

• Stay ahead of the competition: With 36% of enterprises adopting embedded finance to maintain a competitive edge, it’s becoming a must-have for relevance.

• Expand your reach: Enable global transactions by supporting local currencies, payment methods, and regulatory compliance.

• Leverage data for growth: Use transactional insights to refine your products, personalize user experiences, and drive smarter strategies.

How to implement embedded finance: Build vs. buy?

Despite strong demand for embedded finance, getting started isn’t straightforward. Whether building in-house or partnering with a third party, each path can introduce challenges.

Building an embedded finance platform from scratch may seem appealing for the control and customization it offers. However, it requires significant technical expertise, compliance with evolving financial regulations, and development, testing, and scaling resources. The ongoing demands of managing licensing, Know Your Customer (KYC) processes, and state-specific money transmitter requirements can quickly overwhelm even well-resourced teams.

On the other hand, many third-party enablers lack the global infrastructure, product coverage, or flexibility needed for seamless implementation. Limited geographic reach, siloed capabilities, and slow-to-deploy APIs can hinder your ability to deliver an end-to-end solution.

Choosing the right embedded finance platform: key partner considerations 

While the choice between building and buying sets the foundation for your embedded finance journey, it’s only the beginning. Selecting a partner that can address key challenges and support your long-term goals is essential to ensure successful implementation.

Here are some considerations when evaluating embedded finance providers:

• Global readiness from the start: Look for a platform that allows you to integrate once and operate across multiple markets. The right provider will offer built-in regional compliance, eliminating the need for multiple bank partnerships or country-specific licensing.

• Comprehensive capabilities: Consider a provider that enables you to combine financial tools — like transfers, card issuance, and FX — into one cohesive solution. This flexibility allows you to create unique use cases tailored to your business and customers.

• Fast, flexible deployment: Speed to market is essential. A strong partner will offer pre-built components, APIs that abstract regional differences, and operational expertise to help you launch quickly and efficiently.

• Scalable infrastructure: To support your growth, your provider should offer cost-effective, modular APIs that adapt to your evolving needs without requiring constant overhauls.

• Revenue control: The ability to customize pricing and markups ensures you can monetize your offering effectively while leveraging the provider’s infrastructure to keep costs low.

Partnering with a provider like Airwallex removes these roadblocks, offering pre-established licenses, global banking coverage, and a scalable platform designed to handle compliance and operational complexities. This accelerates time to market, reduces risks, and ensures your business is equipped to grow without disruptions.

From theory to practice: powerful examples of embedded finance in enterprises

Airwallex is at the forefront of the embedded finance revolution, providing comprehensive solutions that empower enterprises to enhance their financial capabilities and streamline operations in impactful ways:

• Improve cash flow with Global Treasury. Effortlessly manage cross-border transactions, sending and receiving money in multiple currencies with reduced fees and accelerated processing times.

• Capitalize on every sales opportunity with Payments for Platforms. Seamlessly integrate payment acceptance into your marketplaces or software, creating a frictionless checkout experience that encourages completed transactions and repeat business.

• Meet client needs, fostering loyalty and trust with Banking as a Service. Provide full-featured financial services, including account management and card issuing, directly to customers.

These examples highlight how embedded finance modernizes traditional business models, drives operational efficiency, and unlocks new avenues for growth.

Real-world examples of embedded finance fueling business growth

TradeBridge, a FinTech providing multi-currency funding to eCommerce, healthcare, and corporate clients, needed a financial infrastructure to scale with them as they expand globally. Instead of building from scratch, they partnered with Airwallex to integrate embedded finance capabilities directly into their platform.

By integrating Airwallex’s embedded finance tools, TradeBridge can create multi-currency wallets for their clients, enabling:

• Fast fund delivery in local currencies without hidden fees.

• Direct repayment collection from platforms like Amazon and PayPal.

• Real-time visibility into client sales data to adjust funding facilities instantly.

This integration allows TradeBridge to offer tailored financial products, enhance client experiences, and scale its business globally — all while simplifying operations and reducing costs.

Future-proofing your business: insights from Airwallex’s embedded finance report

The promise of embedded finance is clear — it’s a powerful mechanism for improving customer experiences, creating new revenue streams, and sustaining competitive advantage. Yet, as Airwallex’s report highlights, success depends on navigating complex challenges, from choosing the right platform to addressing integration and compliance issues. 

To capitalize on embedded finance’s full potential, you’ll need a partner who offers robust, scalable, supported solutions. Airwallex is a trusted leader ready to work with enterprises needing technical excellence, flexible scalability, and industry recognition.