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What is embedded finance?

Embedded finance is a no longer new, but recently very popular trend, which enables the implementation of advanced payment solutions directly in the service recipient’s environment – for example, on an online store website or on a platform enabling the purchase of insurance. And this is how – as embedded payments – the term is sometimes translated (although it does not yet have an official equivalent in Polish). We uncover the ins and outs of embedded finance and explain the intricacies of this trend for 2023!
Read our guide to find out:

What is embedded finance?

Implementing advanced payment solutions sounds like something complicated, but it can be explained in an accessible way. We will do this in several points.

First: embedded finance is integrated financial products, which are then made available in various locations. Their creators are factoring companies, banks or insurers, while their users are online stores, marketplace portals (e.g. Allegro) and service providers, i.e. companies unrelated to the financial industry.

Second: if a store, cafe or marketplace uses embedded finance solutions, its customer can easily use the financial product. Here are some examples of using embedded payments:


The bookstore in Otwock already has embedded finance services implemented. This allows its customers to pay with a single click while shopping at the bookstore’s online store.


The private clinic from Krakow uses embedded finance – this makes it possible for patients to choose a deferred payment option and pay for the procedures with a 30-day delay.


The consumer electronics store has implemented embedded payments throughout its network, in partnership with Poland’s factoring market leader. As a result, its customers can take installments on the product they are buying directly on the store’s website – without having to go to the service provider’s site. All you have to do is fill out an application and wait a short while for a decision.

Third: embedded finance is how financial products become available to customers – it’s the development of a tight integration between the environment of the product provider (e.g., a lender) and its recipient (usually a store).

Fourth: embedded finance solutions help entrepreneurs meet customer expectations. In addition, they make it possible to expand payment offerings and develop or maintain a competitive advantage. Customers who are interested in taking advantage of BNPL’s services or buying on installments are more likely to choose a store that allows them to do so without taking extra steps.

Embedded finance we have at home…

…i.e., in our smartphones and computers – and have been for a long time! Any ability to pay for an order in the app (for example, through the ability to plug in a payment card) is also an example of embedded finance, as are the very popular ApplePay and GooglePay services we use every day, for example, on our cell phones.

Another option for using embedded payments is available to Orlen gas station customers – thanks to an app provided by the corporation, drivers can pay for gasoline, diesel and gas without entering a store.

Not just embedded payments

The embedded finance segment does not end with payments made from within the app. Depending on the division we choose to adopt, we can delineate between four and seven elements, belonging to a set called “embedded finance.” These will include:

  • embedded lending (lending services),
  • embedded insurance (insurance services),
  • embedded investing (investment services),
  • FaaS – Fintech as a Service

Embedded lending

Deferred payment is a great solution for those buyers who don’t currently have the funds (or don’t want to release reserves), but have observed an attractive offer. With BNPL, they don’t have to give it up and count on the favorable price to return at a more opportune time. Instead, they can simply order the products they need, and pay at a more convenient time.

Speaking of built-in loan services, we are also talking about other installment solutions, such as trade credit and 0% installments.

Embedded insurance

Built-in insurance services mean you can conveniently purchase additional insurance or warranties as you complete your purchases. A great example of this are online home appliances stores, which offer extended warranties, insurance (e.g. against flooding or mechanical damage – often offered when buying smartphones) when buying kitchen appliances or TVs.

Taking advantage of such an option is nothing more than launching an insurance contract, made possible precisely by embedded insurance solutions.

Embedded investing

Investing – thanks to embedded investing – is easier than ever before. Many payment apps (such as Venmo, which is popular in the United States) offer at least the ability to trade cryptocurrencies or buy shares of companies.

FaaS – Fintech as a Service

We talk about FaaS when fintechs create financial products for companies outside the financial sector. In a sense, FaaS is the essence of embedded finance – without companies that can write the right software, there would be none of the solutions described today.


Embedded finance is a vast collection that houses many modern solutions. What they have in common is a goal: to make financial products more accessible – for both companies and consumers. It is worth remembering that the term goes far beyond mere payments, installment purchases or lending – it is also an opportunity to invest and take advantage of insurance companies. The embedded finance market is growing steadily – some forecasts expect it to grow as much as fifteenfold over the next few years – and that’s another reason to keep an eye on the trend.

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