Embedded Advantage Newsletter | BNPL, B2B, and Branded Accounts: What’s Next?

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Editor’s Pick 📌

🔥 5 Hot Takes from MPE Berlin You Can’t Ignore
By Per Dahlqvist, Director of Business Development at Liberis

We sifted through the noise at MPE—here’s what really matters:

1. If You’re Not Embedding, You’re Falling Behind
Embedded finance isn’t a “nice to have” anymore—it’s survival. Lending, insurance, and banking features are now expected.

2. Real-Time Payments Are Speeding Up
Europe is leading the way with SEPA Instant, and it’s spilling over into merchant payouts, e-commerce, and the gig economy. Instant is the new standard.

3. Data Sharing = Smarter Money Moves
Data-sharing between PSPs, acquirers, and lenders is streamlining pre-approvals and cutting friction. Those who share, win.

4. Merchants Want More Than Just Transactions
Payments are just the starting point. Cash flow tools, capital access, and analytics are becoming the real value drivers.

5. AI Is Great—If It Works
Underwriting, fraud prevention, and tailored engagement—AI that delivers ROI is in, AI that’s just noise is out.

👉 The future of payments is here. Are you ready to keep up?

Industry Trends & Innovation 💡

EMBEDDED FINANCE

Embedded Finance Boosts SMB Loyalty With Seamless Customer-Centric Financial Solutions

By integrating financial solutions directly into digital platforms, businesses not only access fast, efficient services but also enjoy unparalleled convenience. This shift from rigid, bureaucratic finance processes to a more consumer-like experience is vital, especially as SMBs increasingly rely on multiple providers to fulfill their financial needs. Embedded finance not only streamlines these interactions but also fosters loyalty by providing a seamless, tailored funding journey that traditional banks often fail to deliver.

Embedded finance empowers SMBs through tailored solutions, seamless platform integration, and a broader ecosystem of services. By harnessing data and AI, platforms can offer personalized financial products, enhancing customer experience and retention. This customer-centric approach not only secures immediate funding needs but also builds long-term loyalty, positioning businesses for sustained growth. For SMBs, this isn't just finance—it's an evolution, turning what used to be daunting financial navigation into a frictionless, supportive experience.

EMBEDDED FINANCE

Banks Embrace Embedded Finance to Enhance Client and Merchant Relationships

Major banks like J.P. Morgan and Citi are increasingly partnering with digital platforms to embed financial services into commerce journeys. By working with marketplaces and ISVs, they’re expanding reach without building new products from scratch—while helping platforms offer a better experience to sellers and buyers alike.

For platforms, it’s an opportunity to strengthen financial offerings without taking on the regulatory burden of becoming a lender themselves.

STRATEGIC PARTNERSHIPS

Klarna Becomes Walmart's Exclusive Partner For 'Buy Now, Pay Later' Services

Klarna has become the exclusive BNPL provider for Walmart’s OnePay app in the US, replacing Affirm. The partnership lets Walmart shoppers spread payments across 3 to 36 months—a move that positions Klarna ahead of its IPO and gives Walmart tighter control over customer financing options. This is another sign that retail giants are choosing fintech partnerships to streamline the checkout experience and retain customer loyalty.

B2B PAYMENTS TRANSFORMATION

Embedded Finance Streamlines B2B Payments, Enhancing Ease And Efficiency

Embedded finance is transforming B2B payments by integrating services such as buy now, pay later into digital platforms, simplifying transactions and enhancing liquidity. This shift addresses traditional B2B payment inefficiencies and fosters better supplier relationships. Companies that embrace these solutions can enhance operational focus and efficiency within their procurement processes.

EMBEDDED FINANCE EVOLUTION

Embedded Banking Facilitates Direct Bank-Tech Relationships, Enhancing Money Mobility Benefits

A growing number of platforms are working directly with banks via embedded banking solutions—giving them the ability to offer branded accounts, faster payments, and real-time finance features. Players like Synctera and Treasury Prime are enabling this shift, helping platforms build stickier experiences and capture more value across the seller lifecycle.

FINTECH TRENDS

Fintech Trends of 2025 Highlight AI Blockchain Contactless Payments and More

By 2025, advancements in fintech will significantly impact finance through the integration of AI for risk management and customer personalization, blockchain for trust and transparency, and digital wallets for comprehensive financial management. The rise of RegTech will ensure compliance, while the shift towards eCommerce ecosystems will streamline transactions. Embracing these trends is essential for staying competitive and informed in the evolving financial landscape.

MERGERS & ACQUISITIONS

SmartBiz Expands Small Business Services by Acquiring Centrust Bank

SmartBiz, a US-based SMB lending platform, has acquired Centrust Bank and rebranded as SmartBiz Bank. The move helps expand its SBA loan offerings and signals a broader trend of fintechs combining tech agility with banking licenses to better serve small businesses. For marketplaces and ISVs, these types of players could become valuable ecosystem partners.