The Embedded Finance Opportunity
Embedded finance essentially allows any company to offer financial products without being a bank. For example, a ride-sharing app might offer its drivers bank accounts or a retail website might provide customers with installment loans at checkout. Morley describes embedded finance as “a major shift in payments” that represents a huge opportunity for business growth[29]. The appeal is clear: by owning more of the customer’s transaction journey, companies can increase their share of wallet and boost loyalty. Instead of sending your customer to a third-party bank or lender, you keep them within your ecosystem.
Jed Morley emphasizes that embedded finance is rapidly becoming a dominant trend, not a niche concept. In fact, we’re already seeing it in action. Technology firms, retailers, and even manufacturers are offering financial services as part of their primary products. “Embedded finance — where non-financial companies integrate financial services — is becoming a dominant trend,” Morley notes, highlighting that this integration is reshaping consumer expectations[32]. Customers appreciate the convenience of one-stop solutions; for instance, being able to pay, finance, or insure a purchase directly on the platform where they’re making the purchase, without jumping to a bank’s website.
“CEOs should explore how they can embed financial services … into their business models to unlock new revenue streams.”[39]
Morley’s statement above is a call to action for leaders. He suggests that CEOs in virtually every sector ask themselves: What financial service makes sense in the context of my product or service? A few examples include:
- E-commerce and retail: Offering point-of-sale financing (Buy Now, Pay Later), in-app wallets, or branded credit/debit cards to shoppers.
- Software platforms (SaaS): Providing integrated payment processing or factoring services to users (e.g., a freelance marketplace offering instant payout accounts to freelancers).
- Travel and hospitality: Including travel insurance or currency exchange services within a booking app.
- Ride-sharing or delivery apps: Giving drivers instant payment cards or micro-loans for vehicle maintenance.
The possibilities are expansive. Each of these embedded services can create a new revenue stream, whether through fees, interest, or increased sales volume due to enhanced convenience. Additionally, by handling more of a customer’s needs, businesses gather richer data on user behavior, which can inform further innovation and personalized offerings.
Collaboration: Fintechs and Traditional Finance Joining Forces
While the opportunities are enticing, implementing embedded finance is not without challenges. Non-financial companies often lack the regulatory licenses, banking infrastructure, or expertise to offer financial products directly. This is where partnerships come in. Morley observes that “rather than competing, banks and fintechs are increasingly collaborating” in this space[31]. Such collaboration merges the strengths of traditional finance (compliance, capital, trust) with the innovation and agility of fintech companies.
For a CEO, the strategic question becomes: build, buy, or partner? Building in-house capabilities (like creating your own lending division) can be time-consuming and risky unless finance is core to your business. Buying might involve acquiring a fintech startup with the technology you need. But for many, partnering is the quickest route. By working with a fintech or banking-as-a-service provider, you can integrate their ready-made financial service into your product with comparatively little hassle. Jed Morley’s company PlatPay, for example, specializes in enabling such integrations — providing the backend for payments or other services that client companies can plug right into their platforms[33].
Morley’s insight is that to succeed with embedded finance, you must ensure a seamless user experience. The end customer shouldn’t feel like they’ve been handed off to another company’s system; the financial service should feel native to your brand. This can be achieved through APIs and white-label solutions (where the fintech’s technology is behind the scenes and your brand is what the customer sees). Morley underscores the importance of this seamlessness: at PlatPay, for instance, they focus on “helping businesses integrate seamless embedded finance solutions that increase customer retention and revenue”[30]. The word “seamless” is key — if the integration is clunky or requires the user to download another app or fill out a long form for a partner bank, much of the benefit is lost. Frictionless integration is the gold standard.
Driving Customer Loyalty and Revenue
Beyond direct revenue, embedded finance can significantly boost customer loyalty and lifetime value. When customers use your financial services, they are more deeply entwined with your ecosystem. For example, consider a retail marketplace that offers sellers integrated payment processing and a small business loan facility. Sellers who take advantage of these services are likely to stick with that marketplace, since it’s providing them not just sales but also critical financial tools. Morley notes that embedded finance solutions “increase customer retention” precisely because of this phenomenon[30]. The convenience and added value make customers less inclined to switch to a competitor.
Jed Morley also points out that businesses implementing embedded finance should be mindful of trust and risk. When you start handling someone’s money (or financial data), the stakes for user trust are even higher. Ensure robust security and compliance measures are in place. For example, if you’re embedding payments, comply with PCI DSS standards for data security[40]. If you’re offering lending, make sure you follow fair lending practices and clear disclosure regulations. Morley’s background in payment processing has made him acutely aware of compliance as a success factor. “Businesses must implement robust API security, compliance frameworks, and clear customer communication about data usage” when venturing into Open Banking or embedded financial services, he advises[41]. Essentially, don’t jeopardize your brand’s reputation by offering a half-baked financial product — it should meet the same standards a bank is held to, even if you’re not a bank.
When executed well, embedded finance not only creates new income streams but can also reduce costs. For instance, integrated payments can save on transaction fees if negotiated at scale, and having more customer data in-house can reduce customer acquisition costs (since you can market new services to existing users more effectively). Morley hints at another advantage: knowledge. By venturing into finance, companies inevitably become more savvy about the economics of payments, lending, etc., which can lead to smarter business decisions overall. “We build a complete profile on you so that you can know too,” Morley says about how PlatPay supports its clients, emphasizing the value of understanding the financial backend of your business[42]. In other words, embedded finance is not just plug-and-play money-making — it’s a learning process that, if approached collaboratively, can make your whole organization more financially literate and agile.
Real-World Examples and Success Stories
Morley often points to real-world cases that illustrate the power of embedded finance. One notable example is how ride-sharing companies have used embedded finance to their benefit. Some popular ride-hailing apps issue their drivers debit cards that are directly linked to their earnings, allowing instant access to funds after a day’s work. This not only serves as a loyalty tool (drivers appreciate the immediate payout), but also the company earns interchange fees from card usage. Another example is e-commerce platforms offering their sellers working capital loans based on sales data — effectively embedding small business lending into their platform. Those sellers are able to grow faster (which in turn means more sales for the platform), and the platform earns interest income. Such symbiotic relationships are exactly what embedded finance can foster.
Jed Morley’s insights also shed light on emerging areas like insurance technology. Think about an online marketplace for electronics that offers embedded insurance at the point of sale. With one click, customers can add damage protection to their purchase. This convenience can significantly increase the uptake of insurance (which is extra revenue for the platform and insurer), and customers feel safer buying expensive gadgets. For the customer, it’s part of the same checkout flow — they don’t perceive that a separate insurance company is involved, even if the policy is fulfilled by a partner behind the scenes. “Businesses should leverage fintech partnerships to improve customer experiences and streamline operations,” Morley asserts[32], which rings true in this scenario. The fintech/insurer partnership provides the service; the business integrates it to delight the customer.
It’s also worth noting the macro-trend of Big Tech companies moving into finance, which validates the embedded finance concept. Apple’s introduction of the Apple Card and later its BNPL service, or Amazon offering credit to its merchants, are high-profile examples. While not every company has the resources of Apple or Amazon, even mid-sized firms can punch above their weight by teaming up with nimble fintech startups or banking-as-a-service providers. Morley’s advice for CEOs in smaller companies would be to start small: identify one financial pain point you can solve for your customer and pilot an embedded solution for that. If it’s payments, maybe start by integrating a smoother payment gateway with your branding. If it’s lending, perhaps offer a small credit line to a subset of users in partnership with a lender. Collect feedback, iterate, and then scale up.
Getting Started with Embedded Finance
For CEOs and executives eager to dive into embedded finance, Jed Morley’s playbook would likely include the following steps:
- Identify Customer Needs: Survey or analyze your customer journey to pinpoint where a financial service could add value. Is it at the point of purchase, during onboarding, or as an added feature (like rewards or insurance)?
- Evaluate Partners: Research fintech companies or banks that offer “finance-as-a-service” solutions in your area of interest. Look for those with proven technology (API documentation, case studies) and a solid track record in compliance.
- Start Small: Design a pilot program for an embedded service. Set clear metrics for success (uptake rate, revenue generated, customer satisfaction). Ensure you have monitoring in place to catch any issues early (e.g., errors in transactions or user confusion).
- User Experience First: Work closely with your UX/UI teams to make the embedded service feel native. As Morley’s experience shows, a clunky implementation can turn customers off, whereas a smooth one can be a delight.
- Train and Communicate: Train your customer support about the new financial feature so they can answer questions. Be transparent with customers about who the underlying provider is (especially in terms of terms of service or who is securing their funds) to maintain trust.
- Scale and Iterate: If the pilot succeeds, roll it out to more users or expand the offerings. Use the data and feedback to refine the service. Perhaps you started with payments; next, you might add a loyalty reward or a lending option — building a suite of financial touches in your product.
In conclusion, embedded finance is unlocking growth opportunities that were previously out of reach for many businesses. Jed Morley’s insights reinforce that by thoughtfully integrating financial services, companies can increase revenue, improve customer loyalty, and differentiate themselves in competitive markets. As Morley would attest, the key is to approach this trend with both enthusiasm and diligence: embrace the innovation, but execute it with the same rigor you would any core offering. In doing so, you might just find that the next big growth driver for your business isn’t a new product, but a new way to pay, finance, or insure the products you already have.
Key Takeaways
- Every company can leverage fintech: Embedded finance allows non-financial businesses to offer services like payments, loans, or insurance, creating new revenue streams and adding convenience for customers[39].
- Focus on seamless integration: Financial services should be integrated so smoothly that users feel it’s a natural part of your product. Partnership with fintechs/banks can provide the backend while your brand owns the user experience[30].
- Boost customer retention: Providing in-app financial solutions increases customer stickiness. Users who use your embedded payment or credit are more likely to remain loyal, driving up lifetime value[30].
- Collaborate for success: Rather than build from scratch, collaborate. Morley notes that fintechs and traditional banks are teaming up to enable embedded services, combining innovation with reliability[31].
- Maintain trust and compliance: When you handle customers’ money or data, robust security and clear communication are paramount. Ensure any embedded finance initiative meets high compliance standards to protect your brand’s trustworthiness[41].
- Start with customer needs: Identify financial pain points in your customer journey and address those first. A targeted, well-executed embedded service can be expanded into a broader strategy once proven effective.
About PlatPay
Platinum Payment Systems (PlatPay) partners with businesses to deliver seamless embedded finance solutions. Founded by Jed Morley in 2008, PlatPay provides a one-stop platform for payment processing, whether online, in-app, or in-store, and offers integration support for services like financing and loyalty programs. With decades of industry experience and a focus on personalization, PlatPay helps companies unlock new revenue through embedded payments and financial services. Its team’s deep knowledge of compliance and technology allows clients to innovate confidently, knowing that security and reliability are built into every solution.
