Brands today want to offer financial services directly within their apps or platforms, without becoming a bank. This concept, known as Embedded Finance, allows companies to seamlessly provide payments, lending, or digital wallets to their customers. But while the idea sounds simple, the reality is far more complex. Integrating financial services comes with regulatory, security, and operational challenges that can be daunting for businesses, especially those without a finance background.
The Complexity for Businesses when it comes to Embedded Finance
What do businesses say?
According to an October 2025 study by PYMNTS, “Embedded Finance as a Strategic Initiative”, over 90% of companies encounter two or more friction points when implementing Embedded Finance solutions. While technical integration, transparency, and flexibility are common challenges, 39% of respondents cite compliance and security as their main obstacles.
Why compliance and security feel so complex
Financial transactions involve highly sensitive customer data, including personal information, payment details, and transaction histories. Companies integrating Embedded Finance must ensure that every workflow complies with local and international regulations, such as:
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Anti-money laundering (AML)
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Know-your-customer (KYC)
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Sanction screening
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Data privacy laws like Swiss Federal Act on Data Protection
For businesses whose core expertise lies outside finance, navigating these requirements can be overwhelming.
The complexity increases further for international businesses. Operating with a single app across multiple countries requires adapting every transaction, data transfer, and workflow to local regulations. What’s allowed in Switzerland may differ from Germany, France, or Italy. This means multiple workflows, country-specific logic, and extra internal coordination—all while maintaining a seamless customer experience.
The challenge of offering a secured Embedded Finance solution
YAPEAL as an Embedded Finance provider
Regulatory requirements can create heavy burdens for businesses. YAPEAL simplifies this challenge with an Embedded Finance solution built on a secure, fully compliant platform. Partners can focus on delivering exceptional customer experiences, while YAPEAL provides the trusted, regulated foundation that removes complexity and minimizes compliance overhead.
Security, scalability, and maintenance
Security is paramount. Even a minor vulnerability could compromise sensitive data, disrupt transactions, or damage trust. YAPEAL continuously monitors and updates its platform to stay ahead of evolving threats.
At the same time, our platform must be scalable and flexible, supporting multiple partners, integrations, and high transaction volumes without compromising compliance or performance. Our continuous focus on staying ahead of regulatory developments and industry standards, ensures full compliance and gives our partners the confidence to expand their financial offerings securely.
Summary of Challenges
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Business Partner |
YAPEAL |
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Compliance |
Must ensure every workflow complies with local and international regulations
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As a regulated company, reduces partner burden
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Security |
Must protect sensitive customer data internally
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Monitors platform security, mitigates risks for partners
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Internal Coordination |
Multiple teams must align (IT, legal, finance, product)
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Maintains smooth integration for multiple partners
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Scalability & Maintenance |
Must manage operational complexity
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Handles platform updates, scaling, and regulatory changes
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Embedded Finance offers incredible opportunities for businesses — but also brings regulatory and security challenges.
We take care of the complexity, so our partners can focus on what truly matters: innovation, growth, and customer trust.
Benjamin Hollenstein
CRO Chief Risk Officer at YAPEAL
Conclusion
Turning every brand into a payment provider may sound revolutionary, but it’s far from simple. Embedded Finance integration is challenging, particularly for non-financial businesses navigating compliance, security, and international regulations. By partnering with YAPEAL, companies gain a secure, scalable, and fully regulated company that transforms a complex process into a manageable and reliable solution. With the right expertise and infrastructure, embedding financial services can be not just feasible, but a competitive advantage.
The Author
Benjamin Hollenstein
CRO Chief Risk Officer at YAPEAL