Top 9 Embedded Finance Examples and How They Work

Embedded finance changed the way businesses interact with their customers nowadays. A report by PYMNTS.com found that 74% of marketplaces consider embedded finance features highly important to their innovation strategies. This is proof that the future of financial services is already here. ​
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​But what does it look like in practice? We’ll break down the concept into actionable use cases. We will explore how embedded finance is being applied across different financial services. ​
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​We’ve categorized the examples into key areas, so it would be easier for you to navigate. Each category represents a way businesses are integrating financial services into their platforms. ​
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​We’ll walk you through real-world examples and customer journeys for each category. ​ ​
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​You’ll see how these innovations aren’t theoretical - they’re already being used in practice. Get a clear understanding of why embedded finance is a game-changer for businesses looking to stay ahead in the digital age.Click edit, to change text...

Embedded payment definition refers to the seamless integration of payment processing within a platform. It allows users to complete transactions without leaving the app or website. ​
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​Embedded payments changed the way we handle transactions. These seamless payment solutions are making life easier and more convenient. You can spot them everywhere from online shopping to splitting bills. Let’s explore some of the most impactful examples of embedded payments.
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Buy Now, Pay Later (BNPL) services like Klarna and Afterpay are changing the way we shop. Instead of paying the full amount upfront, customers can split their purchases into interest-free installments. ​ ​
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​This option is especially popular in e-commerce, where it boosts conversion rates and makes high-ticket items more accessible. For businesses, BNPL is a win-win—it increases sales while giving customers the flexibility they crave.

Apps like Uber and Airbnb have mastered the art of in-app payments. When you book a ride or reserve a stay, the payment happens automatically within the app- no need to enter card details or switch platforms. ​ ​
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​This customer experience not only saves time but also builds trust and loyalty, as users know their transactions are secure and hassle-free.

Need to split a dinner bill or send money to a friend? Platforms like Venmo and Cash App make it easy. With a few taps, you can transfer funds directly to someone else’s account. P2P payments are a perfect example of how embedded finance simplifies everyday financial tasks.

Services like Netflix and Spotify rely on embedded subscription payments to keep their users hooked. Once you sign up, your subscription fee is automatically charged at regular intervals. This model improves customer retention and reduces the administrative burden of manual billing.

For businesses and individuals dealing with international transactions, embedded cross-border payment solutions are game-changers. It allows users to send and receive money across borders with minimal fees and competitive exchange rates. This way businesses can cater to a global audience without the usual complexities of international banking. ​ ​
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​For businesses looking to build their own embedded payment solution, our guide on how to approach embedded payments software development walks you through the process step by step.

Using the embedded lending widget, companies offer instant access to product credit right at the checkout. For a deeper understanding of how embedded lending works, check out our previous article on what is embedded lending.
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Instant financing at checkout has become a game-changer for online shopping. Services like Affirm and Splitit let customers split their purchases into manageable installments. This reduces the upfront cost while boosting sales for merchants. ​ ​
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​These embedded finance lending options provide seamless credit approval and cut the need for external applications.

Platforms like Shopify Capital and Amazon Lending offer working capital loans directly to merchants. They use real-time sales data to determine eligibility. ​ ​
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​Thus business owners can access funds within the platforms they already operate. Instead of dealing with banks or lengthy approval processes.

Fintech and e-commerce platforms are integrating personal loan options within their services. This makes getting funding easier than ever. Companies like LendingClub and Upstart use AI-driven approval processes to instantly offer loans. ​ ​
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​As the result, users access funds without navigating traditional lending institutions.

Buying a home?
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​​You no longer need to leave your real estate search to apply for a mortgage. Platforms like Zillow and Redfin integrate home loan options directly into property listings. This simplifies the home-buying journey and connects buyers with financing without extra steps.

Securing student loans has never been easier, thanks to embedded finance solutions. Companies integrate loan options into university and educational platforms. Students can access financing without navigating external lenders.
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Embedded insurance is an innovative business model that integrates insurance with products or services. An example is damage and theft insurance offered for a purchased laptop. ​ ​
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​This way, insurance is presented as an added value and becomes part of the purchase journey, not a separate, abstract service. Embedded insurance is usually intergated in e-commerce, travel, automotive, and wellness platforms.
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When booking a flight or hotel online, travelers often have the option to add insurance coverage at checkout. This integration allows them to protect their trips with one click and cover risks such as flight cancellations, lost luggage, or medical emergencies abroad. ​ ​
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​By partnering with insurance providers, travel companies can generate an additional revenue stream by embedding an insurance widget into their systems.

Ever been asked if you want to insure your new phone or laptop? Companies like AppleCare and Amazon Protect offer coverage at the point of sale. It gives customers peace of mind while increasing average order value for retailers. ​
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​​This type of embedded insurance API allows seamless integration into e-commerce platforms, making device protection an effortless add-on.

Getting insurance for a rental car or ride-sharing service used to be a hassle - not anymore. Platforms like Uber and Turo embed auto insurance directly into their apps. ​ ​
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​This helps drivers and renters to get instant coverage. Whether it’s liability protection or full vehicle coverage, embedded insurance benefits users by reducing friction.

Fitness and wellness platforms are now integrating health insurance options. This allows users to access coverage without leaving their favorite apps. Companies partner with insurers to offer embedded health plans tailored to active lifestyles. ​ ​
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​With the right embedded insurance API, these integrations can personalize coverage based on user activity and offer personalized insurance options.

Major retailers like Best Buy and Walmart now embed extended warranties into the checkout process. This allows customers to protect their electronics, appliances, and other high-ticket items with ease. ​
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​​Instead of searching for third-party coverage, users can opt for extended protection with a single click.

When buying or renting a home, securing insurance is often a crucial step. Some platforms now offer embedded home insurance, allowing buyers get coverage through real estate and rental marketplaces. ​
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​​This eliminates the need for a separate insurance search, saving time and effort. Platforms enhance convenience for users while creating additional revenue opportunities for businesses. ​
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​At the core of this transformation is embedded insurance API technology. It allows businesses to integrate coverage options seamlessly into their digital platforms. This approach enhances customer trust and improves conversion rates. ​ ​
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​Additionally, it creates a more streamlined user experience. The future of insurance is centered on convenience and accessibility.

These types of programs encourage repeat purchases and long-term brand loyalty. Without requiring extra effort from users.
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Everyone loves getting money back on their purchases. Cashback platforms integrate rewards directly into the shopping experience, making it easy for users to earn back a percentage of their spending. ​ ​
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​These programs apply to various purchases, including online shopping, groceries, and travel bookings. Embedded cashback solutions help consumers save while boosting conversions for merchants.

Loyalty points are a key part of customer engagement strategies. Many businesses integrate rewards programs into their apps, allowing users to earn points with every purchase. ​ ​
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​These points can be redeemed for various benefits, such as free products, discounts, or service upgrades. By offering valuable incentives, brands increase customer retention and encourage repeat purchases. ​ ​
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​Interested in the best practices for Loyalty and Reward Programs? ​
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​Check out our latest article: Loyalty App Development: 2025 Comprehensive Guide.

Co-branded reward programs allow users to earn and redeem points across many brands. ​
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​By linking rewards to payment methods, digital wallets, or financial platforms, customers enjoy automatic point accumulation with every purchase. They can later redeem these points for travel, shopping, dining, or other perks - all within the same ecosystem.​
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​This eliminates the need for separate loyalty programs, making rewards more accessible and easier to use. It also strengthens brand loyalty by encouraging repeat spending and deeper customer engagement.

As digital transactions grow, so do risks like fraud, identity theft, and regulatory violations. Embedded compliance and risk management solutions help businesses stay secure. Below we describe tools for identity verification, fraud detection, and regulatory compliance.
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Know Your Customer (KYC) and Anti-Money Laundering (AML) checks are essential for financial services, marketplaces, and fintech platforms. These processes help verify user identities, prevent fraud, and ensure compliance with financial regulations. ​
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​By embedding KYC and AML verification tools into onboarding workflows, businesses can improve identity verification. Users no longer need to go through time-consuming manual checks. Automated verification reduces fraud risk by detecting suspicious activities in real-time.

Online fraud is constantly evolving, making real-time protection essential for businesses. Fraudsters use various tactics like account takeovers, payment fraud, and identity theft, to exploit digital platforms. ​
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​AI-driven fraud detection tools analyze transaction patterns and user behavior to identify suspicious activities. Businesses can detect threats by integrating these tools into payment systems and e-commerce platforms. This proactive approach helps prevent fraudulent transactions before they result in financial losses.

Embedded compliance solutions help monitor transactions, verify identities, and ensure adherence to regulatory requirements. Companies can automate compliance checks instead of handling them manually. ​ ​
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​This approach reduces risk, streamlines reporting, and minimizes human error. It also allows businesses to focus on growth while ensuring they remain fully compliant.
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Built-in donation and fundraising tools make it easier to support charities. Whether it’s donating at checkout, funding a creative project, or rounding up spare change for a good cause, embedded donations make the process easy.
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Many platforms now offer built-in donation options, allowing users to contribute to charities with a single click. This makes giving quick and effortless. ​
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​Some platforms provide subscription-based support models, where users can donate regularly. Others embed direct donation buttons within apps and websites, making contributions even more accessible. ​
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​Recurring donation features also simplify long-term support. Users can set up automatic contributions, ensuring ongoing help for the charities they care about.

Crowdfunding tools allow individuals to raise money for creative projects, personal causes, or business ventures. These tools are built into familiar digital platforms, making fundraising more accessible. ​
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​Integrated fundraising pages help users set goals and share their stories. Supporters can contribute directly without needing to visit external websites. ​
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​Some platforms also offer milestone-based rewards. This feature keeps donors engaged and encourages more contributions over time.

Round-up donation features make charitable giving simple and automatic. Users can round up their purchases to the nearest whole number, donating the spare change to a selected cause. ​
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​By embedding this feature into everyday transactions, businesses encourage continuous charitable support. Users give without needing to take extra steps, making donations effortless. ​
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​Over time, these small contributions add up. As a result, they generate significant support for charities and social initiatives.

Embedded marketplace financing integrates financial services directly into digital marketplaces. This makes transactions more accessible and secure for both sellers and buyers.
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Many online marketplaces now offer seller financing. This allows merchants to access loans and get the capital they need to grow their businesses. ​
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​Embedded lending programs analyze a seller’s sales data and transaction history. Based on this information, they offer customized loan options that fit the seller’s needs. ​
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​Sellers can use these funds to increase inventory, improve daily operations, or invest in marketing. Unlike traditional bank loans, these financing solutions are faster and more accessible.

Embedded buyer financing helps consumers spread the cost of their purchases over time. It provides flexible payment options, making expensive items more affordable. ​
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​Buy now, pay later (BNPL) services integrate directly into checkout pages. Shoppers can choose installment payments without leaving the platform. This seamless process improves convenience and accessibility. ​
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​Offering financing at checkout increases conversion rates and boosts average order value. It removes financial barriers, encouraging more customers to complete their purchases.

For high-value or complex transactions, embedded escrow services provide an extra layer of security. They act as a trusted third party, holding funds until both the buyer and seller meet their obligations. ​
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​This process helps prevent fraud and ensures that transactions are completed fairly. Buyers feel more confident making large purchases, while sellers are assured they will receive payment. ​
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​By integrating escrow services, online marketplaces create a safer environment for transactions. This builds trust between users and encourages more business activity.
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Healthcare can be expensive, and many people struggle to afford necessary treatments. ​ ​
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​Embedded healthcare finance helps solve this problem by offering financing options within healthcare platforms. It allows patients to access medical services without worrying about upfront costs.
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Many people need medical treatments but cannot pay for them all at once. Medical loans offer a way to spread out the cost over time. Patients can apply for financing directly through healthcare providers or platforms. ​ ​
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​These loans cover procedures like surgeries, dental work, and elective treatments. This option makes healthcare more accessible by allowing patients to get the care they need without financial stress.

Health Savings Accounts (HSAs) help people save money for medical expenses. Many healthcare platforms now integrate HSAs, making it easier to track and use these funds. ​ ​
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​Patients can pay for doctor visits, prescriptions, and treatments directly from their HSA balance. This integration simplifies medical payments and encourages better financial planning for healthcare.

Telemedicine is growing, allowing patients to consult doctors online. However, paying for virtual visits should be just as easy as the consultation itself. Embedded telemedicine payment systems allow patients to pay for appointments instantly within healthcare apps. ​ ​
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​They support various payment methods, including insurance, HSAs, and digital wallets. This seamless process ensures that getting medical advice online is fast and hassle-free.

Real estate transactions involve large sums of money, and managing payments can be complicated. Embedded real estate finance helps simplify the process. ​
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​​It allows homeowners, renters, and property managers to access financing and payment solutions directly through digital platforms.
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Many homeowners have built equity in their homes. Home equity loans let them borrow money using that equity as collateral. ​ ​
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​These loans can be used for renovations, debt consolidation, or other major expenses. Instead of going through a traditional bank, homeowners can access financing directly through real estate platforms. This makes the process faster and more convenient.

Renters often deal with outdated payment methods like checks or bank transfers. Embedded rent payment solutions make paying rent easier by integrating digital payments into rental platforms. ​
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​​Tenants can pay through apps using credit cards, bank transfers, or even scheduled payments. This reduces late payments and makes tracking expenses simpler for both renters and landlords.

Managing rental properties comes with costs. Property management financing helps landlords and property managers cover expenses like repairs, upgrades, or maintenance. ​ ​
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​These loans are embedded into property management platforms, making it easier to access funds when needed. This allows property owners to improve their rentals without disrupting cash flow.

Embedded finance is changing the way businesses and consumers handle money. It makes payments, lending, and financial services easier to access. Companies that integrate these solutions can offer a smoother experience, build customer loyalty, and increase revenue. As embedded finance grows, businesses need the right technology to keep up. Adding payment options, offering financing, or ensuring secure compliance all require a solid digital foundation. A well-built system helps companies stay competitive and serve their customers better.
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​One of the biggest questions businesses face is whether to build embedded financial services in-house or rely on Banking as a Service (BaaS) providers. If you're exploring these options, our comparison of Embedded Finance vs. Banking as a Service will help you understand the key differences.
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​At Ulan Software, we build embedded finance solutions that fit your business needs. We specialize in software product development, API integrations, and financial technology to help you bring seamless financial services into your platform. If you’re ready to add embedded finance to your platform, we’re here to help. Contact Ulan Software to explore how we can create a solution that works for you. Let’s build the future of finance together!