By Ifeyinwa C. Okoli
Most of us use embedded finance without realising it. Hailing a ride, purchasing a coffee with a digital wallet, or choosing ‘buy now, pay later’ at checkout all tap financial tools built into non-financial apps. This silent revolution delivers banking (payments, lending, insurance etc.) inside everyday services The impact is enormous: one study pegs the global embedded finance market at around $105 bn in 2024 and growing rapidly
What is embedded finance?
Embedded finance means that companies outside traditional banking offer financial services as part of their core product. McKinsey defines it as “the delivery of financial products, such as loans, insurance, and payments, by nonfinancial entities within the context of a broader nonfinancial offering”
In practice this can look like an app offering instant loans during a purchase, or a service providing payment and insurance together. Examples include:
Digital payments and wallets: Apps and websites integrate payment tools (Apple Pay, PayPal) and “buy now, pay later” services at checkout.
Instant payouts: Gig-economy platforms issue payment cards so workers get paid immediately
Point-of-sale loans: Retailers and travel sites partner with lenders to provide instalment loans at purchase
Embedded insurance: Insurers embed policies for travel, electronics, etc. directly into online purchases
Each of these blurs the line between commerce and banking, making finance seamless.
Explosive growth and mainstream adoption
This is not a niche trend. Around 60% of UK adults used an embedded finance service in the past year (for example, an e-wallet or BNPL app) Among 18–34-year-olds the figure is about 80%, with over a third of users tapping these services monthly. The appeal is convenience, speed and personalisation.
Analysts say the market is exploding. One report estimates the global market at $104.8 bn in 2024, with compound annual growth of around 23%. It could reach nearly $834 bn by 2034, and some forecasts suggest $7.2 trn by 2030 In Europe alone embedded finance may exceed €100 bn by decade’s end.
Embedded finance is already changing commerce worldwide. For example, social media and messaging apps in Asia have built shopping experiences that include payments and credit, which boosts sales. Even here, UK retailers and tech companies are racing to embed banking services to stay competitive. Britain’s fintech ecosystem is well placed for this wave. The UK was an early mover in digital payments: it launched the Faster Payments system in 2008 and pioneered Open Banking in 2016. Those steps set a foundation, making it easier for fintech startups and banks to collaborate via open APIs. UK regulators and policymakers have actively encouraged fintech with sandboxes, targeted investment, and a supportive regulatory approach. Official strategy reflects this momentum. A July 2025 government vision explicitly notes payments becoming “embedded within our daily activities” and aims for a “world-leading payments ecosystem” Independent reviews praise the UK’s “strong banking, cards and digital wallets environment” and well-established regulatory framework. The FCA and Bank of England were recently given explicit mandates to support industry growth. At the same time, experts caution the UK must get this right. A recent review warned that without clear strategy, Britain could fall behind international peers. In response, the 2025 Financial Services Growth Strategy commits to “proportionate, predictable and internationally competitive” regulation. New data-sharing and digital ID laws are also on the way, aiming to spur innovation in finance while keeping consumers safe.
The road ahead
The rise of embedded finance is blurring old roles. The era of banks vs. fintech is giving way to “coopetition” – collaboration between financial giants and agile tech partners. For instance, Citigroup backed a $500m deal to power a fintech platform that extends loans to gig workers and SMEs. The result is an ecosystem where banks provide scale and stability, and fintech add innovation and reach. Technology will push the next phase. AI, data analytics and ubiquitous connectivity promise even smarter finance imagine real-time loan approvals or automated budgeting features embedded in an app. But this brings risks: fraud, privacy and debt become harder to monitor and manage. That is why policy matters: regulators emphasise clear rules and consumer protections, and platforms must build secure, user-friendly systems.
Embedded finance is fast becoming the plumbing of the digital economy. For consumers and businesses, it promises convenience and access—finance delivered through the apps we already use. For companies of all kinds, it offers new channels to grow. The UK has the ingredients to lead: a vibrant fintech community, respected regulators and a history of payments innovation. The next chapter will test the balance between innovation and oversight. Policymakers aim to keep rules agile while ensuring stability. Firms must invest in transparency and trust. If done right, embedded finance could boost both inclusion and growth, quietly reshaping the sector while largely hidden in plain sight. The World Bank notes this trend is creating “new pathways for financial inclusion,” helping underserved businesses and consumers access credit in ways they couldn’t before.
Ifeyinwa Okoli is a Board Member and Non-Executive Director of Prospa Capital Microfinance Bank Ltd, a financial technology strategist, and a banking executive with over two decades of experience in digital payments, identity management, and cybersecurity policy review. She has advised fintech industry bodies on regulatory frameworks, participated in national cybersecurity consultations, and led large-scale digital transformation projects in the African banking sector.
