Just 11% of Retailers Measure Embedded Finance Success by ROI

The PYMNTS Intelligence report “Retailers Expand Embedded Finance to Unlock Control and Customization” found in November 2025 that just 11% of retailers gauged embedded finance success in terms of return on investment, even as most reported gains in customer experience, operating efficiency and checkout conversion.

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The report, which surveyed heads of payment at 37 retailers in the United States, showed that 34% offered embedded finance capabilities. Among those firms, 82% cited better customer experiences, 68% more efficient operations and 62% higher checkout conversion.

The findings put the ROI figure in context. Retailers were seeing business benefits, but the measures they used to evaluate embedded finance extended into risk, compliance and the ability to fit financial products into their existing operations.

Three findings showed what retailers were getting from embedded finance and what they expected from the technology behind it:

• The most frequently cited benefit of offering embedded finance was improving customer experiences, named by 82% of retailers. Another 68% reported more efficient operations and 62% higher checkout conversion. Revenue was part of the picture, but it ranked lower, as 41% said embedded finance increased revenue, while 85% called it a competitive advantage.
• The share of retailers who reported regulatory challenges with embedded finance was 88%, and 71% cited managing fraud risk. Data protection requirements were a challenge for 71%, anti-money laundering rules for 68% and know your customer requirements for 50%. The pressures spanned products, as every retailer offering subscription plans reported regulatory challenges, while 80% of those with co-branded debit cards did.
• As far as traits retailers looked for in an embedded finance provider, 81.1% cited strong regulatory and compliance capabilities, ahead of advanced fraud and risk capabilities at 75.7%. Seamless system integration and ease of integration each came in at 73%, while 67.6% cited the ability to customize. The priorities showed why a simple ROI calculation captured only part of what retailers expected the technology to do.

Company size changed some of the priorities. Among retailers with at least $500 million but less than $750 million in annual revenue, 75% said embedded finance innovation was more important than innovation in other areas. For retailers with at least $1 billion in revenue, 85% identified strong regulatory compliance as a factor in defining success, followed by strong risk management capabilities at 74% and well-defined customer use cases at 63%.

For retailers, embedded finance is being evaluated as operating infrastructure as much as a financial product. Customer experience and efficiency provide the upside, while compliance, fraud controls, integration and customization determine whether the model is workable enough to scale.

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.