PYMNTS Intelligence and Marqeta joint efforts have uncovered the benefits and the challenges of financial tools delivered directly inside non-financial platforms and apps. Examples of expansions of business lines and revenue streams include co-branded credit and debit cards, consumer lending, supplier lending, instant payouts, digital wallets and buy now pay later options.
Customers use these tools at the point of purchase rather than leaving the platform to complete payments or seek financing. According to the report, 97% of surveyed firms already offer embedded financial solutions. Marketplaces use APIs from banks and FinTechs to provide the financial infrastructure while remaining focused on their own core customer experience.
Embedded finance works because it influences customer behavior in measurable ways. Sixty-four percent of marketplace respondents report reduced churn after adopting these tools. At the same time, 51% of firms cite new or additional revenue streams.
PYMNTS Intelligence and Marqeta found two primary categories of embedded finance capabilities. Digital wallets and payouts are most effective at keeping customers engaged. Co-branded cards and lending solutions are more closely tied to monetization because they drive new financial transactions on the platform.
Marketplaces that focus on lending tend to see the strongest revenue outcomes. Seventy-three percent of online lenders in the survey say embedded finance is a lever for revenue and growth.
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Why Revenues Grow
The revenue story in the data is tied to customer trust and convenience. Seventy-two percent of executives say embedded finance improves customer experience. The same share said these tools increase consumer trust. When customers trust a marketplace with their money, they stay longer, return more often, and complete more transactions on site.
The report noted that cost savings are not the driver of revenue results. Only 19% of firms identified saving on costs as a priority. Instead, marketplaces keep high-value customer actions inside the platform. That protects revenue that previously went to outside financial providers.
The data also highlights the effect on product strategy. Seventy-eight percent of firms said they pursue embedded finance to improve customer experience, while 51% want to open new revenue opportunities.
Marketplaces Need Partners
The report showed that most marketplaces face structural barriers when building revenue through embedded finance. Eighty-one percent of respondents said regulatory challenges are the top issue. Fraud risk follows at 75%.
Because of these risks, vendor selection becomes a strategic revenue decision. Ninety-two percent of firms said that strong regulatory compliance is the top factor that defines success with embedded finance. Seventy-six percent note that strong risk management capabilities are also key.
The report made a clear distinction. Marketplaces preferred partners with regulatory knowledge and fraud prevention systems over providers that promise flexibility or customization.
This is because compliance failures can damage customer trust and undermine revenue.
Embedded finance is no longer experimental. The data indicates that it has matured into a standard feature of successful marketplaces. The most effective firms pair specific capabilities with specific goals. Wallets and payouts reduce customer churn. Lending and co-branded cards drive revenue — and firms that embed embedded finance into their roadmaps see measurable results.
