How embedded finance helps banks, merchants and fintechs expand reach
Driving growth and loyalty through new financial experiences
How embedded finance helps banks, merchants and fintechs expand reach
A rideshare driver pays for new tires with a loan she applied for in her driver app. A customer grabs his latte from a coffee shop counter. He paid before he ever left his house. A first-time investor sets up an automated portfolio in a budgeting app.
Moments like these are made possible by embedded finance – the integration of financial services into nonfinancial experiences. The phenomenon is growing fast.
Analysts expect the total embedded finance market to grow rapidly, with estimates often projected to be over $500 billion by 2030. While no one can predict the future, the direction suggests a permanent shift in how people and businesses expect to interact with money. Financial services are now built directly into the digital and in-person experiences consumers have every day.
From financial institutions and fintechs to merchants, marketplaces and more, embedded finance represents a promising avenue for growth and an opportunity to deliver more products and services to more people in more places.
What is Embedded Finance?
Embedded finance is the delivery of financial services through nonfinancial channels like brick-and-mortar merchants, e-commerce platforms, marketplaces and a wide range of apps. Services are delivered at the point of need and can include paying, getting paid, saving, borrowing, investing or anything else that involves money. Every time people pay for a rideshare within the app, get paid instantly after completing a food delivery or apply for financing at checkout, they’re using embedded finance.
A community bank and a national brand partner to deliver award-winning embedded finance products
Starion Bank, a community bank headquartered in North Dakota, serves as the sponsor bank for the DoorDash Crimson account.
DoorDash wanted to make it easier for delivery drivers utilizing its platform – “Dashers” – to access and manage their earnings. In collaboration with Starion, Fiserv and Central Payments, they launched Crimson, a full-featured deposit account that is embedded directly within the Dasher app. It provides fast, flexible access to earnings along with essential financial tools like direct deposit, money movement capabilities and cash access.
Crimson makes money management more convenient and affordable while supporting secure access for Dashers. By elevating the experience, DoorDash drives engagement with its platform and fosters retention of valued Dashers.
As a result of this initiative, Starion Bank experienced massive account growth – 3 million accounts in a little over 3 months – and a healthy increase in total deposits. The bank gained customers from across the nation and was named an American Banker 2025 Innovation of the Year honoree.
Big brands reinvent themselves
Major brands are transforming into fintechs by embedding financial services into their experiences.
For example, Amazon, ExxonMobil and Fiserv partnered to create a solution that enables consumers to use a voice-enabled device to pay for gas. Walmart is partnering with Fiserv to launch a pay-by-bank option – a real-time payments solution that gives consumers a real-time channel while creating a cost-effective payment solution for merchants.
These are just a few examples of brands setting the standard for convenience, loyalty and experience through embedded finance.
An all-in-one offering delivers value
A comprehensive embedded finance offering requires capabilities and expertise that span technology, compliance and operations. This enables merchants, platforms and marketplaces to accelerate their programs and gives financial institutions an easier pathway to sponsorship.
At Fiserv, we bring our strengths in processing, bank ledgers and integrated value-added services. Through a recent acquisition, Fiserv has added orchestration and program management capabilities. Taken together, these capabilities provide a complete solution for embedded banking, payments and lending.
Embedded finance isn’t a zero-sum game
From the checkout counter to the banking app, embedded finance is changing how people manage their money. There are many players involved in a successful solution, and the benefits are widespread:
- Banks and credit unions can grow deposits, fee revenue, lending opportunities and SMB access by partnering with merchants and fintechs that deliver/offer those services.
- Merchants, fintechs and ISVs can integrate branded debit or credit cards, demand deposit accounts and tailored credit offerings into the customer experience.
- For consumers, embedded finance offers convenience, greater purchasing power and access to financial services designed around their needs.
- Businesses can manage cash flow, track expenses and secure financing within CRM, bookkeeping and point-of-sale platforms.
Merchants gain sales and loyalty. Financial institutions expand their reach and revenue sources. Fintechs build differentiated experiences that stick. Consumers and businesses get financial tools tailored to their needs and delivered in real time.
The power of embedded finance lies in mutual value creation. With the right technology and partnerships, everyone wins.