The Most Successful Cases of the $82.7 Billion Embedded Finance Industry

Embedded finance has entered our lives and it has changed how we interact with non-financial platforms. We as clients benefit from improved customer experiences, and easy payment systems, and for business owners such solutions can turn into a new revenue stream. However, the adoption of embedded finance solutions is not without challenges—some implementations have been successful, while others have struggled. Let’s explore some of the most effective use cases of embedded financial products and lessons learned.

Ride-Hailing Revolution: Taking a Ride Has Never Been Easier

Uber and Bolt are textbook examples of successfully implementing embedded finance solutions in the ride-hailing industry. Now, customers can use integrated payments without leaving the platform. Additionally, riders no longer need to worry about carrying cash or using external solutions—the payment is deducted automatically once the ride ends.

For drivers, they integrated instant payouts, ride ratings, or streamlined tipping process. These features are excellent examples of gamification that also increases drivers' motivation. When it’s easy enough users are more likely to use the tipping option which is additional profit for the driver. Here a correct implementation of embedded finance into existing platforms enhanced business growth and its global expansion.

Digital Tipping: When Not Having Cash is No Longer a Problem

The integration of digital tipping features into payment platforms has revolutionized also industries like hospitality and restaurants. Companies like Square and Toast have embedded tipping options directly into point-of-sale (POS) systems and mobile apps, allowing clients to tip waiters instantly without calculating the bill, searching for cash, or worrying whether the money will be pooled with the rest of the staff.

For instance, restaurant diners can easily add a tip during checkout on an iPad POS, or delivery app users can tip couriers with a single tap after receiving their food. These embedded finance solutions improve employee satisfaction in industries where tipping forms a significant part of income and increase transparency and efficiency of a tipping process.

E-Commerce: Enjoy Your Purchase Now, Pay Later

E-commerce is an industry where an easy payment process is the most important. One of the e-commerce leaders: Shopify stands out with its payment systems. On its platform integrated payment processing, merchant lending options, and financial management tools make Shopify a go-to CMS platform for many users. 

Similarly, buy now, pay later (BNPL) services like Klarna and Afterpay have redefined online shopping by allowing consumers to split payments into installments. This approach enhances customers' purchasing power and increases merchant revenue, making it one of the most impactful use cases of embedded finance. What we can notice, is an early adoption of this model, led to a situation where many customers still don’t understand the potential and risks coming along with the BNPL system. Without financial education, debt can be an even bigger problem for the global population. 

Smart TVs and Streaming: Screens Turning Into Wallets

Embedded finance is now a feature also in our living rooms. Streaming platforms and smart TVs allow consumers to make purchases directly from their screens. For example, a user can subscribe to a new channel or buy a product featured on a show with just a few clicks on their remote.

This innovation, driven by platforms like Samsung, Sony, or Apple TV, combines entertainment and commerce, enabling consumers to shop conveniently while watching their favorite shows. The functionality doesn’t stop at single purchases—viewers can make multiple purchases seamlessly, further increasing their engagement.

MarTech: Publishers Need To Be Paid Faster

Affiliate marketing, a key component of the MarTech industry, benefits significantly from embedded finance solutions. Affiliate publishers often face challenges accessing loans and other financing methods. These small and medium-sized businesses face cash flow issues and lack credit options as traditional financial institutions don’t understand the industry. 

Embedded finance can close this gap by enabling affiliate publishers to withdraw their earnings easily and access other financial products, such as loans, to support their operations and growth. One example of such a solution is CapyFast, which offers fast payouts for affiliate marketers, enabling them to reinvest in their businesses and enhance cash flow.

It’s Not Always a Walk in the Park

Embedded finance is not a one-size-fits-all solution. For many streaming platforms and subscription-based services, simply embedding financial products isn’t enough. These solutions must be user-friendly, with clear processes that explain charges and provide easy cancellation options. Consumers demand transparency, and failure to meet these expectations can leave embedded finance ineffective. If subscribing to a service requires too many steps, users are unlikely to use it—especially when competitors offer simpler alternatives.

Companies prioritizing user experience, transparency, and value creation will thrive using embedded finance, while those failing to meet these standards risk losing their target audience.

Whether it’s ride-hailing, digital tipping, or BNPL services, embedded finance is reshaping how we interact with money in the service industry. The lessons from both successes and setbacks prove the importance of considering customer needs when implementing innovative solutions. The future lies in creating a frictionless financial experience, and embedded finance is paving the way forward.