Cash & Liquidity Management
Published  11 MIN READ

Power Pairing

Embedded Finance Meets Card Innovation

Financial services and products embedded into a single seamless, convenient, and easy-to-use customer experience have long been taken for granted by consumers. Experts from HSBC and Visa discuss how the embedded revolution is now gaining traction in the corporate space – unlocking much-needed efficiencies and cost savings for treasurers and procurement managers.  

The partnership between banks and technology firms that has enabled businesses to integrate financial products and services on their own platforms has been one of the major successes of the rapid digitalisation of recent years. Indeed, embedded finance is now so prevalent it is hard to think of a sector or industry that has not been impacted by it.

According to a study published last year by consultant Bain, financial services embedded into e-commerce and other software platforms in the US alone accounted for $2.6tr., or nearly 5%, of total financial transactions in 2021. It predicts this will exceed $7tr.  – more than 10% of total US transaction value – by 2026. Bain further expects the three largest embedded finance markets in the US (payments, lending, and banking) to see revenues double from $22bn in 2021 to $51bn by 2026[1].

For Arati Kurien, Global Head of Commercial Cards Product Management, HSBC, the robust growth of embedded finance in the US in an accurate indication of the enthusiasm being shown for it globally. Much of the growth has been driven by consumers’ keenness to make payments via websites and platforms, with the e-commerce boom a major catalyst for its acceptance. Consumers take embedded finance for granted nowadays, she points out, whether it be for online shopping or booking an Uber.