A year ago, embedded finance was often framed as a feature.
PYMNTS Intelligence data shows it has become a foundation for how companies build and grow relationships with customers.
That shift is at the center of a PYMNTS Intelligence report created in collaboration with Green Dot, titled “Embedded Finance as a Strategic Initiative,” which examines how firms are integrating payments, banking and lending into their platforms.
Based on a survey of more than 500 senior leaders, the report finds that embedded finance is now nearly universal across industries. Companies are not only adopting these capabilities; they are leaning on them to drive customer engagement, improve performance and differentiate their brands.
From Feature to Foundation
The numbers tell a clear story. Nearly every company surveyed offers at least one embedded finance capability, spanning payments, banking and money movement. For many firms, these tools are no longer optional add-ons. They are becoming core to how businesses operate and compete.
Embedded finance is also changing how companies think about value creation. Instead of focusing primarily on cost savings, firms are using these capabilities to strengthen relationships and improve outcomes. Financial performance and customer growth now rank as the leading measures of success, underscoring a broader move toward using financial services as a strategic lever.
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Building the Customer Experience
The report highlights a growing emphasis on control. By integrating financial services directly into their platforms, companies can manage how money moves through their ecosystems. This allows for faster onboarding, more seamless transactions and more personalized interactions.
- 99.8% of firms offer at least one embedded finance capability, making it a near-universal feature across industries.
- 86% say embedded finance improves financial performance, while 75% cite customer growth as a key benefit.
- 93% of companies report high satisfaction with their embedded finance capabilities despite ongoing challenges.
Payments, banking features and money movement tools are at the center of this effort. These capabilities help reduce friction for users while keeping them engaged within a single platform. Over time, that can translate into stronger loyalty and more opportunities to expand services.
This approach is also influencing where companies invest. Most firms plan to upgrade their embedded finance capabilities within the next year, with a focus on enhancing existing services rather than introducing entirely new ones. The goal is to deepen functionality and improve the overall experience.
Managing Complexity While Scaling
Despite the momentum, companies continue to face challenges. More than nine in 10 report friction tied to integration, compliance and platform flexibility.
Even so, the overall outlook remains positive. High satisfaction rates suggest that companies see clear value in pushing forward. Many are turning to external partners to help manage complexity, with about 70% relying on third-party providers for embedded finance capabilities.
Choosing the right partners is becoming a key factor in success. Firms are looking for solutions that align with their broader strategies and can be tailored to their specific needs. Those that get this right are better positioned to overcome operational hurdles and unlock the full potential of embedded finance.
At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.