Embedded Advantage | SMEs Are Driving a Quiet Revolution in Global Trade Finance

A NEWSLETTER AFFILIATED TO

Editor’s Pick 📌

Per Dahlqvist on the Real Shifts Happening in Payments Right Now

Fresh from the floor at TRANSACT, Liberis’ Per Dahlqvist shares five trends shaping the future of payments and embedded finance. From FedNow’s momentum to AI-powered underwriting, here’s what caught our attention:

• Embedded finance is going mainstream

• Real-time payments are gaining serious ground

• AI is powering real outcomes

• Fraud prevention is evolving fast

• Acquirers are stepping into lending territory

👉 Read the full breakdown →

Expert Opinion ✍️

A New Era for Marketplace Innovators

In the rapidly evolving landscape of global commerce, marketplace operators and tech enablers face unprecedented challenges and opportunities. The recent imposition of sweeping tariffs by the United States has sent ripples through international markets, compelling businesses to adapt swiftly. Amidst this turbulence, embedded finance solutions have emerged as a crucial tool, empowering technology enablers to sustain seller performance and navigate economic instability.

Economic Shocks and Market Dynamics
The connection between economic shocks and online marketplace performance is undeniable. For instance, recent US tariffs have disrupted eCommerce volumes, particularly in cross-border trade. The removal of duty-free de minimis treatment for low-value imports from China and Hong Kong has led to market upheaval, increasing consumer costs and challenging sellers who depend on these platforms.

The Role of Embedded Finance
Embedded finance solutions have become indispensable for sellers grappling with these challenges. By integrating financial services into online platforms, technology enablers provide sellers with access to capital, flexible payment options, and risk management tools. This support enables sellers to maintain operations and thrive despite uncertainties. Real-world examples demonstrate that platforms utilizing embedded finance experience enhanced seller growth and transaction volume, even in the face of adversity.

Strategic Insights and Future Directions
Lessons from international trade countermeasures can inform funding innovations in digital commerce. Strategic decoupling and supply chain diversification are essential for resilience. Companies should invest in regional value-creation ecosystems to avoid over-reliance on a single market, thereby mitigating risks and unlocking growth in emerging markets.

Conclusion
Adapting to economic shocks is crucial for the sustainability of online marketplaces. By leveraging embedded finance and drawing insights from trade countermeasures, businesses can thrive in a dynamic global economy. The future belongs to those who reimagine globalization, creating resilient, interconnected networks that are responsive to change.

Industry Trends & Innovation 💡

COMMERCE INNOVATIONS

AI And Embedded Finance Key Drivers In Evolving Commerce Landscape

AI and embedded finance are reshaping commerce by enhancing efficiencies, improving security, and boosting consumer engagement. SMEs are rapidly adopting AI to cut costs and better understand customer behavior, while AI also aids in fraud detection, countering privacy concerns. Embedded finance expands into business operations, reducing transaction fees in sectors like automotive and retail, marking a fundamental shift in commerce practices for 2025.

EMBEDDED FINANCE

Embedded Finance Simplifies Global Trade by Integrating Seamless Financial Solutions

Global sellers are turning to embedded finance tools like invoice factoring and real-time payments to manage cash flow across borders. By integrating financing directly into eCommerce platforms, marketplaces like Amazon and Alibaba are helping sellers access faster funding and reduce risk. This unlocks participation from smaller sellers in global trade—benefiting platforms with higher volume and loyalty.

FINANCIAL INNOVATION

Embedded Finance's Potential to Transform Financial Services Globally and Locally

Embedded finance is reshaping financial services by integrating payments and lending into non-financial platforms, making them more accessible and relevant. The global market is expected to hit $7.2 trillion by 2030, driven by collaborations between traditional banks and fintechs. In the UAE, growth is fueled by digital payment demands and initiatives promoting financial literacy.

RETIREMENT PLANNING

Embedded Finance Simplifies Retirement Planning For Greater Accessibility And Security

Embedded finance seamlessly integrates retirement planning into everyday financial tools, making saving easier and more accessible. By automating contributions with tools already in use, like payroll systems, it democratizes financial security. This innovation is crucial as it empowers even the financially inexperienced to secure their futures.

EMBEDDED FINANCE STRATEGY

Optimize ISV Revenue Through Embedded Finance Collaboration With Elavon

Independent Software Vendors (ISVs) can significantly boost their growth by embracing embedded finance solutions. By integrating various financial services, such as lending options and alternative payment methods, ISVs can enhance user experiences and tap into new revenue streams. This approach ensures they stay competitive, add value, and foster stronger customer relationships.

FINANCE TRANSFORMATION

Oracle Cloud ERP Advances AI-Driven Finance for Increased Productivity

Oracle Cloud ERP is reshaping the finance sector by introducing AI-driven capabilities that enhance efficiency, forecasting, and financial processes. Major organizations like Guardian and DHL praise Oracle's solutions for increasing productivity and decision-making speed. With its robust AI infrastructure, Oracle Cloud ERP stands out in the competitive SaaS ERP market.

COMMERCE TRENDS

AI and Embedded Finance Transform Commerce and Payments in 2025

In 2025, eCommerce will thrive with advancements in AI, embedded finance, and payment orchestration, pushing businesses to enhance operational efficiency and customer experiences. SMEs are particularly embracing these technologies to cut costs and improve market responsiveness. As digital payments increasingly dominate, combating fraud with biometric security and robust payment orchestration becomes crucial for sustaining trust.