Vitaliy Shtyrkin is the CPO at B2BINPAY, an all-in-one crypto ecosystem for business. With nearly 15 years of experience in the financial markets, particularly in fintech, Vitaliy brings deep expertise to his role, where he shapes product strategy and oversees development to align with the company’s broader goals.
His recent focus has been on building robust crypto payment solutions that streamline digital asset management for businesses. At B2BINPAY, he plays a central role in driving innovation and operational efficiency, guided by a strategic vision to create a unified financial ecosystem and accelerate the mainstream adoption of cryptocurrency.
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Embedded finance is rapidly transforming the very essence of e-commerce. At the same time, embeddable solutions attract a new, younger audience for whom paying effortlessly and quickly — immediately, in an app or on a website, in a convenient currency — is critical.
Some Retrospective
E-commerce checkouts have seen a significant makeover over the past ten years. It all started with PayPal, which emerged as the first real alternative to the usual payment cards and bank transfers. Then, a wave of innovative fintech companies jumped in, offering lending, payments, and a variety of financial services right at the checkout.
In the past, these services were typically handled by a third party, requiring users to switch to separate apps to complete a transaction. However, thanks to the rise of embedded finance, companies can now easily integrate financial services right into their existing systems.
If you remember what the market looked like before the digital revolution that took place in the 2000s, it was always very inconvenient to pay, all those personal visits, queues, request priorities and so on. And, accordingly, it was absolutely wildly inconvenient. One of the main achievements of the digital revolution is simply the convenience, to begin with, the convenience of getting all-in-one services when you pull out your phone from your pocket. You can buy almost anything you want instantly and effortlessly.
How Does It Work?
One of the most exciting innovations in embedded finance is the rise of payment methods based on open banking, commonly known as ‘pay by bank’. This approach streamlines transactions by linking directly to a customer’s bank account, allowing for fast and secure payments through the firewall and private Web-secured open banking payment systems.
Integrating options like Buy Now, Pay Later (BNPL) or lending providers really highlighted how crucial embedded finance for merchants’ success has become. Consumers who once struggled to purchase because of cash flow issues can now easily spread the cost over several payments (thanks to BNPL) or opt for longer-term installments (with embedded lending).
Embedded payment technology seamlessly integrates payment processing into the core architecture of a platform using APIs and software development kits (SDKs). This approach enables transactions to be completed within the platform's own interface rather than redirecting users to an external payment gateway.
For example, ride-hailing apps pioneered in letting users pay for the trip directly within the app, thereby eliminating the need for external payment gateways and delays, which helped these systems rapidly gain popularity.
Embedded Finance Is a Must-Have for All
Embedded finance is projected to see significant growth in the coming years. By 2026, the transaction value of embedded finance in the U.S. is expected to exceed $7 trillion, accounting for more than 10% of all financial transactions. Revenue opportunities for software platforms and infrastructure providers powering embedded finance are forecasted to more than double from $21 billion in 2021 to $51 billion in 2026.
Payments and lending will continue to dominate, but adjacent services like insurance, tax, and accounting are expected to expand at a more rapid pace due to the low base effect. This rapid growth will be driven by the increasing integration of financial services into non-financial platforms, enhancing customer experience and financial access while reducing costs and risks for businesses.
Some retailers will be further encouraged to provide branded debit cards or digital wallets, allowing customers to store funds and make purchases within their own ecosystems rather than cashing out back to their traditional banks.
Blockchain-based decentralized Finance (DeFi) & Web3 financial solutions will most likely gain particular traction, offering decentralized lending and payments to broader audiences regardless of their origins and geographical locations.
What is important to note at this point is that many of the world’s governments are refining regulations to accommodate embedded finance, ensuring uniform compliance and security.
To Stay Abreast, Embedded Finance is Key
Embedded finance is really shaking things up in the financial services world. It’s all about making things easier and more personal for both businesses and customers when it comes to handling money. As technology keeps advancing and what customers want changes, we will see embedded finance become a bigger part of the financial landscape. There are still plenty of industries and businesses that haven’t fully realized their incredible potential.
To stay competitive in the ever-changing world of e-commerce, businesses must recognize the importance of embedded finance. This trend not only boosts user satisfaction but also plays a crucial role in retaining customers and building loyalty, making it a key revenue driver.
By integrating services like payment processing, lending, and insurance right into the e-commerce experience, companies can simplify the very process of online purchase, simultaneously enhancing cash flow and tapping into new revenue opportunities.
Soon enough, we’ll see various emerging forms of embedded finance tailored to specific financial needs and niche markets. Plus, innovations like blockchain, artificial intelligence, and open banking are set to supercharge its growth and adoption. These trends indicate a shift toward more integrated, AI-driven, and decentralized financial solutions.
