The Rise of Embedded Finance: Building the Infrastructure for the Future


Hatched by Glasp

Sep 04, 2023

4 min read


The Rise of Embedded Finance: Building the Infrastructure for the Future


In today's rapidly evolving financial landscape, the focus has shifted from consumer fintech to embedded finance. This shift has caught the attention of savvy investors who recognize the potential for startups to form the infrastructure for the next wave of financial services innovation. As we explore the concept of embedded finance, we will delve into the significance of companies like Stripe and Plaid as early exemplars, and discuss how newer ventures like Apiture and Yapily are also making their mark. Furthermore, we will explore both traditional fintech and crypto as sectors that are embracing embedded plays. This article aims to shed light on the exciting potential of embedded finance and its role in shaping the future of financial services.

The Power of Embedded Finance:

Embedded finance offers a unique approach to solving consumer-facing problems by leveraging software and technology to facilitate seamless integration between financial services and other industries. Rather than building standalone consumer fintech platforms, companies are focusing on providing the infrastructure and tools that enable businesses to embed financial services directly into their existing products or workflows. This approach not only enhances user experiences but also opens up new avenues for innovation and collaboration.

The Success Stories: Stripe and Plaid:

When discussing embedded finance, it is impossible to ignore the success stories of Stripe and Plaid. These companies have established themselves as pioneers in the field, providing developers with the necessary tools to embed payments and financial data into their applications. By simplifying the integration process and offering robust APIs, Stripe and Plaid have become integral to the digital economy. Their success serves as a testament to the potential of embedded finance and the value it brings to businesses and consumers alike.

Expanding Horizons: Apiture and Yapily:

While Stripe and Plaid have paved the way for embedded finance, newer ventures like Apiture and Yapily are also making significant strides in this space. Apiture, a banking platform built for the digital age, enables financial institutions to seamlessly embed banking services into their digital channels. Yapily, on the other hand, focuses on providing API connectivity to enable businesses to access financial data from various sources. These emerging players highlight the expanding horizons of embedded finance and the diverse opportunities it presents.

Traditional Fintech and Crypto: Embracing Embedded Plays:

Embedded finance is not limited to traditional fintech companies alone. Even within the crypto space, startups are recognizing the potential of embedding financial services into their platforms. By incorporating features like decentralized finance (DeFi) protocols and crypto wallets, these companies are enabling users to seamlessly access a wide range of financial services within the crypto ecosystem. This convergence of traditional fintech and crypto demonstrates the versatility and adaptability of embedded finance.

The Promise of a Fully Digital Financial Ecosystem:

Embedded finance represents a powerful force in accelerating the transition to a fully digital financial ecosystem. By eliminating friction and streamlining financial processes, businesses can focus on their core offerings while seamlessly incorporating financial services. This promises enhanced efficiency, improved customer experiences, and increased opportunities for innovation and collaboration. As we look to the future, embedded finance will play a vital role in shaping the financial services landscape.

Actionable Advice:

  • 1. Embrace Collaboration: Businesses looking to tap into the potential of embedded finance should actively seek partnerships and collaborations with fintech startups that offer infrastructure solutions. By leveraging these partnerships, businesses can enhance their offerings and stay ahead of the curve.
  • 2. Prioritize Seamless Integration: When embedding financial services into existing products or workflows, prioritize seamless integration. This means offering robust APIs, clear documentation, and developer-friendly tools to ensure a smooth and efficient integration process.
  • 3. Stay Ahead of Regulatory Changes: Embedded finance operates at the intersection of finance and technology, making it crucial for businesses to stay informed about regulatory changes. By proactively monitoring and adapting to evolving regulations, businesses can ensure compliance and maintain the trust of their customers.


Embedded finance is emerging as a powerful force in the financial services industry, offering innovative solutions that seamlessly integrate financial services into various industries. Companies like Stripe, Plaid, Apiture, and Yapily are leading the way, providing the infrastructure and tools that enable businesses to embed financial services into their products and workflows. As this trend continues to gain momentum, it is essential for businesses to embrace collaboration, prioritize seamless integration, and stay ahead of regulatory changes. By doing so, they can unlock the full potential of embedded finance and contribute to the creation of a fully digital financial ecosystem.

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