Embedded Advantage | $25.2B by 2034: Why BaaS is fintech’s fastest-growing sector

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Editor’s Pick 📌

On the Ground at Money20/20: The Future of Finance Is Embedded, Explainable, and Built for Small Business

This year at Money20/20 Europe, Liberis was at the heart of the conversation—and helped lead it.

Reporting live from Amsterdam, we captured a fintech sector in transition. AI isn’t theory anymore. Embedded finance isn’t optional. And trust is no longer just a value—it’s a requirement.

🔍 From the Floor:

• AI gets real: Liberis unveiled Ada, its proprietary AI underwriting agent, developed with Google. It’s built for real-time, explainable funding decisions—and guided by human oversight to ensure fairness and transparency.

• Embedded capital meets real impact: In a joint session with eBay, Liberis explored how embedded financing is helping thousands of sellers unlock growth—like one entrepreneur who tripled her listings after funding landed directly in her eBay dashboard.

• Trust takes centre stage: From regulators to platform leaders, everyone agreed—AI, open banking, and embedded finance must be auditable, explainable, and built on trust.

As the fintech ecosystem shifts from disruption to pragmatic execution, Liberis is setting the standard: smarter systems, simpler experiences, and scalable funding—embedded right where small businesses need it most.

Industry Trends & Innovation 💡

EMBEDDED PAYMENTS EXPANSION

U.S. Bank Enhances Embedded Payments for Efficient and Secure Transactions

U.S. Bank's expanded embedded payments suite integrates efficient and secure payment capabilities into business systems, streamlining operations and enhancing financial control. This is vital for finance leaders striving to optimize liquidity, reduce payment friction, and improve customer experiences, with industry-wide applications from fintech to healthcare.

MARKETPLACE PAYMENTS

Embedded Wallets Enhance Payments And User Experience In Digital Marketplaces

Embedded wallets simplify marketplace payments by enabling instant in-app transactions and efficient fund management. For marketplace operators, they reduce costs, enhance compliance with KYC and AML protocols, and support automated commission management. This technology assures a seamless user experience, pivotal in a competitive digital landscape.

BANKING SERVICES

Global Banking As A Service Market Insights And Forecast To 2034

Banking as a Service (BaaS) is transforming financial landscapes by enabling non-banks to integrate financial services directly into their platforms through APIs. With a projected growth from USD 6.5 billion in 2025 to USD 25.2 billion by 2034, it offers seamless, mobile-first experiences essential for engaging modern consumers. This model supports fintech innovations, regulatory compliance, and enhances customer loyalty across diverse sectors like eCommerce and mobility, empowering businesses to thrive.

BUSINESS EXPANSION

Raisin Partners With FIBT to Enhance Banking as a Service Platform

Raisin's integration with FIBT's Banking-as-a-Service platform is set to expand access to digital financial services. This collaboration is significant for users looking to benefit from streamlined, efficient banking solutions. It emphasizes the growing trend of digital financial tools enhancing user experiences and broadening financial accessibility.

EMBEDDED FINANCE EXPANSION

Galileo Enables SoFi's Expansion Into Embedded Finance and Digital Banking

Galileo, SoFi Technologies' B2B arm, is pivotal in the embedded finance market, enabling seamless banking integrations into various platforms. This not only broadens SoFi's revenue streams but also enhances its competitive stance as businesses favor digital banking solutions over costly infrastructure. Investing in SoFi could be wise if you're considering fintech opportunities.