How Embedded Payments Are Becoming Standard for FinTechs

Competition Is Forcing FinTechs to Go Deeper

As competition intensifies across financial technology, standing out is no longer just about features or pricing. Increasingly, it is about how closely financial services are woven into a customer’s daily workflow.

Embedded payments have emerged as a key part of that shift. Rather than sitting alongside a product, payments are being built directly into platforms, allowing FinTechs to offer more complete experiences and deepen customer relationships over time.

What began as a convenience is quickly becoming a competitive requirement.

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Embedded Payments Lead the Way

Recent industry research shows just how widespread this shift has become. Every FinTech surveyed reported offering at least one embedded finance capability, signalling that embedded services are no longer experimental.

Embedded payments are the most common capability, offered by 90% of firms. Lending follows at 73%, with payouts close behind at 70%. Digital wallets and investing tools trail further back, used by roughly half or fewer firms, highlighting where future expansion is likely to occur.

The uneven adoption is telling. Payments are the natural starting point, but many FinTechs see embedded finance as a roadmap rather than a finish line.

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More Than a Feature Add-On

FinTechs are not embedding payments simply to check a box. Most firms point to clear business outcomes driving adoption.

Better customer experiences are the most cited benefit, followed closely by increased consumer trust. Embedded finance allows platforms to reduce friction, keep users engaged longer, and meet financial needs without forcing customers to leave the ecosystem.

Operational efficiency also plays a role. More than half of firms report internal improvements tied to embedded finance, as tighter integrations reduce handoffs, manual processes, and data gaps.

Just as important, embedded payments are reshaping growth economics. By owning more of the payment flow, FinTechs can move beyond traditional fee models, capture interchange revenue, and unlock cross-selling opportunities supported by richer data and real-time insights.

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Expansion Brings New Challenges

As FinTechs add more embedded capabilities, execution becomes more complex.

Fraud risk and regulatory requirements are common early challenges. But firms that offer four or more embedded services report a different set of pressures. Internal strain becomes more pronounced, particularly around cross-team coordination and the resources required to support expanding product lines.

More than half of these firms cite collaboration challenges across teams, while nearly half say too many internal resources are being pulled into ongoing support. As embedded finance matures, success depends as much on internal structure as on external technology.

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Embedded Finance as Infrastructure

The direction is clear. Embedded payments are no longer a differentiator on their own. They are becoming foundational infrastructure.

For FinTechs, the question is no longer whether to embed payments, but how to scale embedded capabilities without eroding efficiency or increasing risk. For partners and providers, the challenge is enabling growth while simplifying compliance, fraud management, and integration.

As competition increases, embedded finance will continue to shape how FinTechs build relationships, generate revenue, and operate at scale.

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Payment Solutions with Kubera Payments

At Kubera Payments, we help businesses across North America move millions of dollars daily, whether in-store, online, or on mobile.

Our team of payment experts is here to guide you through the complexities of fraud prevention and payment security. We work closely with acquirers and technology partners to ensure your transactions remain secure, compliant, and reliable.

Get expert advice on strengthening your payment security. Contact our team at sales@kuberapayments.com or 604-484-9278

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