The role of payments in business is undergoing a fundamental transformation. Once seen primarily as a cost centre, payments are now emerging as a critical revenue driver. Embedded payment solutions are enabling businesses to not only manage increasingly complex payment structures, but also to unlock new revenue streams. 

By seamlessly integrating payments into digital platforms, companies can enhance user experiences,  more effectively support marketplace sellers or platform users, and create more value for their ecosystems. This constant evolution in payment technology is reshaping industries, making these solutions indispensable for staying competitive and driving growth across Europe and beyond.

What are embedded payments?

The value of embedded payments lies not merely in simplifying transactions themselves: various approaches can achieve this end. Embedded payments are about the seamless management of complex payment flows between multiple parties, such as consumers, platform users, and marketplaces. These systems unify diverse financial interactions, whether it’s splitting payments, managing payouts to sellers, or reconciling fees within a platform. 

Essential features of embedded payments

When selecting an embedded payments provider, businesses should look for key features that enhance financial transactions:

1. Seamless pay-in and pay-out functionality: Businesses can manage incoming and outgoing payments in multiple currencies, providing flexibility for both merchants and customers.
2. Effortless KYC and onboarding: Integrated compliance and onboarding processes allow businesses to quickly verify and onboard new sellers, reducing friction.
3. Split payments and escrow services: These features enable funds to be securely divided among multiple parties, holding payments in escrow until conditions are met, and ensuring trust and reliability.
4. Automated dispute resolution and support: Built-in mediation tools help manage disputes efficiently, enhancing customer service and reducing administrative burdens.

For businesses, these capabilities reduce manual workloads, enhance transaction security, and foster customer loyalty. For consumers, they simplify the purchasing experience while offering greater transparency and trust.

Embedded payment solutions go beyond basic transaction processing by introducing advanced automation, security measures, and flexible business models; they support a variety of payment structures; and essentially serve as a one-stop-shop for digital transactions.

Advancements in application programming interface (API) technology and cloud-based solutions have played a crucial role in the rise of embedded payments. APIs allow seamless integration of payment capabilities into existing platforms, reducing implementation time and costs. Cloud-based infrastructure ensures scalability and security, making it easier for businesses to adopt embedded payment systems without major overhauls.

Real-world applications across industries

Across Europe, businesses are leveraging embedded payments to drive growth and innovation:

• Retail: As retail marketplaces expand, the need for seamless payment setups grows. Effective payment solutions must support split payments across multiple sellers while maintaining a frictionless omnichannel experience for customers, both in-store and online.
• Hospitality: Restaurants and service providers rely on platform businesses and ISVs to consolidate operations, streamline management, and enhance efficiency—integrating embedded payments as part of these platforms improves transactions and generates additional revenue.
• Marketplaces: Online marketplaces enable sellers to sign up, sell, and receive payments effortlessly, fostering business expansion.

The future of embedded payments: AI and automation

Artificial intelligence (AI) and machine learning are set to further develop embedded payments. AI-powered fraud detection, personalised transaction flows, and predictive analytics will make payment experiences even more intuitive and secure. For businesses aiming to stay ahead, embedded payments are no longer just an advantage—they’re a necessity. As new technologies continue to reshape commerce, integrating these solutions allows companies to unlock greater value from payments.