Embedded finance is everywhere
You have probably used embedded finance in your daily life as a consumer — paying for an Uber ride with your connected bank account, making an online purchase with Apple Pay, checkout using an e-wallet, or sending money to your friends using Venmo.
Today, more and more non-bank companies are providing banking services such as payment (WeChat Pay), insurance (Airbnb Host Protection Insurance), lending (Amazon Lending), and wealth management (Chime). As a business, you can easily integrate embedded finance solutions, e.g. offer customers checkout using Stripe, “pay later” options using Affirm, or build your own digital wallets using Solarisbank — as an in-app, in-browser, and native banking feature.
Angela Strange, General Partner at a16z captures this trend perfectly — every company will be a fintech company and encourage companies to adopt embedded finance as a monetization lever. There are more exciting opportunities to deploy, and how you can expand revenue streams as a business. Let’s dive deeper.
Key players in the ecosystem
- Non-bank companies offering financial services: Apple Pay, Google Pay, WeChat Pay, Alipay, Amazon Pay
- Buy now, pay later (BNPL) solutions: Affirm, Afterpay, Klarna, Sezzle
- Embedded insurance solutions: Trov, Cover Genius, Clyde, Boost Insurance, Tint, Extend
- Banking-as-a-service (BaaS providers), help companies integrate financial stack: solarisBank, Synapse, Galileo, BBVA
- (🔒 Full version) +5 more business categories in the embedded finance space
- (🔒 Full version) +70 more company examples across different segments. You can use this list to discover:
- 💡What are the profitable niches in embedded finance?
- 💡How to differentiate FinTech products by comparing landing page headlines?
- 💡How to create a compelling one-liner by reading value propositions from other companies?
What problems do they solve?
- Payment processing without going through a third party. According to a16z, a native digital payment experience can boost 2x ~ 5x revenue per customer. Stripe lets you embed checkout and payment methods on your website or mobile app. Square helps you create your own point-of-sale on any iOS or Android device. Finix helps companies accept payments, manage payouts, and onboard merchants.
- (🔒 Full version) +4 more valid problems existing players are solving. Understanding these problem statements will help you build something people want. You’ll also learn:
- 💡Problem definition 1: What problems does Affirm solve?