Embedded Finance: 2025 Market Landscape by Type

Embedded Payments dominate the Embedded Finance market because they are at the very core of every transaction, without payments, nothing moves. Unsurprisingly, their 2025 value is estimated at $65 billion, accounting for nearly half of the entire Embedded Finance market.

Across every industry, retail, travel, streaming, and beyond, transactions happen constantly, and users expect to complete their purchases with increasing ease. This is especially true for repeat purchases on the same platform or app.

As a result, Embedded Payments are no longer a “nice-to-have” feature but a necessity that consumers have come to expect. In many apps, paying can now be as effortless as swiping or tapping, turning the payment step into a seamless part of the overall user journey.

For the growing number of businesses adopting Embedded Payments, the impact is clear: an intuitive platform where payments are smooth leads to higher conversion rates, more frequent and longer user engagement, and ultimately, increased revenue.

Moreover, once payments are embedded, it becomes far easier for a business to integrate additional financial services such as credit, insurance, or loyalty rewards. In this way, payments become the gateway to the entire embedded finance ecosystem.

Embedded lending is the fastest-growing segment of Embedded Finance, with 2025 revenues estimated at $30 billion. This surge reflects rising consumer demand for instant credit and the convenience of borrowing exactly at the point of need.

It is particularly popular among younger generations, who have been the main drivers of its growth. These consumers value flexibility, speed, and convenience, and are far more open to alternative payment methods like Buy Now, Pay Later (BNPL). Seeking frictionless, instant financing options over traditional credit, they find embedded lending perfectly aligned with their mobile-first habits, enabling financing directly within the shopping or booking experience.

Embedded lending is now common in e-commerce, electronics, travel, home improvement, healthcare, and education, any sector where purchases are substantial or benefit from installment payments. For businesses, the impact is significant: embedded lending options not only reduce cart abandonment but also improve conversion rates. Over time, this leads to higher revenues, stronger customer loyalty, and more frequent repeat purchases. A study by Stripe has shown that offering a Buy Now, Pay Later (BNPL) solution can increase revenue by up to 14%.

Embedded Insurance represents a significant opportunity for businesses, both as a source of additional revenue and as a tool to drive growth. Consumers increasingly expect the option to protect their purchases, such as being able to cancel or modify a booking, giving them peace of mind at the point of transaction. While traditional insurance for flight cancellations or travel emergencies has existed for decades, the expectation for seamless, real-time coverage embedded directly into the purchase process is a more recent development.

Businesses that recognize this shift can leverage it to secure more transactions. By offering embedded insurance, they provide customers with a sense of control and confidence, reducing hesitation and increasing trust. This not only helps complete sales but also generates extra income through insurance premiums, making it a win-win for both consumers and companies.

Reflecting this growing demand, the embedded insurance market is estimated to reach $10–15 billion in 2025, as more industries adopt integrated insurance solutions to enhance customer experience and diversify revenue streams.

Though the smallest of the four major Embedded Finance categories, with an estimated market size of around $8 billion in 2025, Embedded investments carries enormous growth potential.

Services such as micro-investing, robo-advisory, and automated retirement savings are increasingly integrated into ride-hailing apps, gig-economy platforms, e-commerce marketplaces, and even social apps. By embedding investment options directly into platforms where users already spend time, these services make wealth-building accessible, effortless, and part of everyday life.

Embedded investing lowers barriers to financial participation, particularly for younger generations who may feel intimidated by traditional brokerage accounts or perceive investing as complicated or exclusive. By meeting users where they already are, platforms can normalize investing, making it as routine and seamless as checking a social feed. This represents a shift toward financial inclusivity: investing is no longer confined to those with disposable income or prior financial knowledge. It encourages habits of long-term financial planning from a young age, subtly embedding responsibility and empowerment into daily digital interactions.

Charline Dulac

Growth Marketing Manager at YAPEAL