Embedded finance is not a new player in the finance industry. Buy Now, Pay Later is a very popular option amongst consumers. So popular in fact, it is expected that the embedded finance market will reach a value of over 290bn USD by 2033.
While it is an established financial practice, there are many use cases that are yet to be explored in the secured finance industry. According to PWC, there are more and more automotive, transportation, hospitality, entertainment, and real estate firms looking into embedded finance. Are you getting a slice of the pie?
Benefits for customers
Convenience: A lot of customers are looking for convenience; a Forbes survey found that almost 60% of customers would pay more if it granted them great customer service. By offering loan options at point of sale, customers can complete their journey much faster which often results in higher satisfaction.
Easier access to products: Choosing the right products and understanding options is not always straightforward, and customers can find themselves lost in a sea of choices. Some customers may choose not to purchase big ticket items if it is not clear to them what loans are available. Embedded finance takes away this confusion, offering them a financial product that perfectly aligns with the purchase they are making.
Benefits for lenders
Customer reach: Convenience does not just benefit customers. If they can access a loan directly in their buying journey, many customers will be more likely to pick the services offered than search elsewhere. This can widen a lender’s reach.
More trust: If a lender is chosen by a highly reputable brand as their finance option, this boosts the lender’s trustworthiness. Customers like to buy from brands they trust, and by extension, are more likely to trust other businesses the trusted brands promote.
Better data: With more information on user data and their buying habits, lenders can offer a tailored product that suits their needs. Learn more about the power of data and how it can drive growth in our previous blog.
Let’s not forget about the companies selling the products…
Embedded finance gives customers access to products they may not have been able to purchase without a financing option. Customers may also be more likely to buy a product they hadn’t originally been searching for if they can access it more easily.
Overall, embedded finance is a great option for customers and lenders alike. The opportunities go beyond simple loans, with many businesses offering significant banking options within their apps. Learn more about embedded finance, alongside the other top secured finance trends in 2025 and beyond, in our eBook.
Top Trends in Finance 2025
Read part 1: Why your growth strategies should be data-driven
Read part 2: Important regulation changes you need to be aware of
Read part 3: Why you should be paying attention to embedded finance
Read part 4: Technology challenges in lending and how to solve them
Plan ahead in a competitive market!
Read our latest eBook: Shaping the future of secured finance trends with technology 2025