90% of FinTechs Offer Embedded Payments as Competition Intensifies

“FinTechs Tap Embedded Payments to Deepen Customer Relationships” finds that embedded finance has become a competitive differentiator, enabling FinTechs to weave payments and other financial functions directly into their digital ecosystems, creating more complete customer relationships and increasing lifetime value. Just as importantly, embedded finance is reshaping the business case for growth. The report describes how providers can move beyond traditional fee models by capturing interchange income and enabling cross-selling supported by richer data and real-time insights.

The findings show how widespread this shift has become. All 30 firms surveyed reported offering at least one embedded finance solution, with embedded payments the most common capability (90%), followed by lending (73%) and payouts (70%). Digital wallets (50%) and investing capabilities (43%) trail behind, signaling clear room for expansion as FinTechs broaden their value propositions. The report also underscores why firms are doing this now: 87% cite better customer experiences, 60% cite greater consumer trust, and 53% cite improved operational efficiency as key benefits tied to embedded finance adoption.

In “FinTechs Tap Embedded Payments to Deepen Customer Relationships,” learn how:

Embedded capabilities are spreading beyond payments, but not evenly. Payments are the most embedded capability today, while wallets and investing remain less common, creating a roadmap for where many FinTechs can expand next.

Embedded finance is being used to strengthen the relationship, not just add a feature. Most surveyed firms connect embedded finance to better customer experiences and higher trust, and many also point to efficiency gains that can improve how the business runs day to day.

The execution challenges change as firms add more capabilities. Fraud risk and regulatory challenges are common early obstacles, but firms with four or more capabilities increasingly report internal strain, including difficulties with cross-team collaboration (54%) and too many internal resources dedicated to support (46%).

Download the Data Brief FinTechs Tap Embedded Payments to Deepen Customer Relationships

About the Report

“FinTechs Tap Embedded Payments to Deepen Customer Relationships,” a PYMNTS Intelligence and Marqeta collaboration, is based on a survey of heads of payment at 30 financial services firms conducted in July 2025. The report examines how embedded finance drives growth, efficiency and customer loyalty in the financial services industry.