In the competitive US market, companies and startups are racing to deliver the most convenient solutions in order to boost revenue and earn customer loyalty. One powerful way to achieve this is by embedding financial features — such as payments, lending, insurance, or even full banking services — directly into your mobile app, web app, or website. With embedded finance, your users can access financial services right from your platform, even if your company isn’t a financial firm. This not only keeps customers more engaged but also saves them time, as they don’t need to visit a traditional bank — making it a win-win for both your business and your users.

In this article, we dive into the concept of embedded finance, explain how it fits into the embedded finance market in the US, and outline the key technical components and challenges involved in implementing it. If you’re looking for ideas on how to make your product more valuable and convenient, learning about embedded finance in the USA is a great place to start.

What is embedded finance?

Embedded finance is the practice of integrating financial services into non-financial products, applications, and user experiences. This means digital platforms — such as online shops, marketplaces, or travel apps — can provide users with financial tools directly within their ecosystem.

For example, an online store might include embedded payments at checkout so customers never have to leave the site, while travel apps can offer embedded insurance at the moment of booking. Retailers that provide “buy now, pay later” options illustrate embedded lending in action, as users can split purchases into installments instantly. Some platforms now also enable embedded investing, letting users access investment tools without switching apps.

With embedded finance, financial products become a seamless part of the customer journey. Users can open accounts, take out loans, and make payments or investments all within a single familiar app — eliminating the need to visit a traditional bank. This integration streamlines the user experience, drives higher engagement, and generates new revenue streams for non-financial companies.

The embedded finance phenomenon in the USA

Embedded finance in the USA is gaining traction at a remarkable pace, with the market expected to grow at an annual rate of 23.8% in the coming years. The growing interest in the embedded finance industry can be attributed to several factors.

Americans demonstrate a high level of digital literacy: users are already comfortable with banking apps, contactless cards, digital payments, and online payment platforms.

The country has a mature API infrastructure. Many financial institutions and embedded finance platforms, such as Stripe Treasury and Treasury Prime, offer businesses tools to integrate banking services, embedded payments, insurance, and other financial products into their platforms using open banking APIs. This fosters embedded finance partnerships and helps expand the embedded finance ecosystem.

Consumers in the USA show a positive attitude toward new business models and embedded fintech companies. People are willing to try embedded finance solutions and new embedded finance products from brands they trust, even if those brands are not traditional banks or financial institutions. This creates an ideal environment for embedded finance companies and fintechs to collaborate with non-financial businesses and launch new embedded finance services on digital platforms.

This creates an ideal environment for embedded finance companies and fintech companies to collaborate with non-financial businesses, launching new embedded finance services on digital platforms. Here, embedded financing is actively developing. Providing a financing option at the point of need can also improve cash flow for both businesses and customers, fostering greater financial inclusion.

There are several notable examples of successful embedded finance integrations in popular U.S. products, including Shopify Capital and Uber Wallet.

Shopify Capital

A strong example of embedded finance in the USA is Shopify Capital. This solution lets merchants access cash advances or embedded lending directly within the Shopify platform. By embedding financial services in daily operations, Shopify uses merchants’ sales data to offer personalized financing options and amounts. Repayments are automated, with a fixed percentage taken from daily Shopify sales, aligning with the merchant’s real cash flow and making lending simpler and more convenient.

Uber Wallet

Uber Wallet is embedded finance at work: Uber builds payments, account-like balances, and card issuing directly into the app so drivers and couriers get instant payouts, store earnings, and spend via a linked debit/card product—without visiting a bank. For earners, the value is faster cash flow, automated payment processing, and rewards; for Uber, it increases retention and keeps financial transactions inside its ecosystem. Put simply, Uber Wallet is a prominent example of how embedded banking fits into everyday life in the United States.

Advantages of embedded finance for non-financial businesses

By integrating financial services like payments, lending, insurance, or banking solutions directly into non-financial platforms, businesses can improve user experience and create greater value within the products and services their customers already use. Embedded Finance in the USA is becoming a key strategy for companies that want to stand out in the market and deliver more to their users. If you are considering having embedded finance features within your business, here are the benefits it can bring:

Unlock additional revenue

Non-financial companies can open up new finance streams with embedded finance. By offering embedded payments, embedded lending, or even embedded banking, businesses earn commissions, interest, or referral fees from their financial product offers. For example, when an e-commerce platform provides embedded financing for its sellers, it makes money from each loan in addition to typical transaction fees. All in all, this approach helps diversify the company’s financial sources, moving beyond core product sales.

Build lasting loyalty

Embedded finance solutions make the customer journey smoother. When customers can use banking services or get financing directly in an app they already use, the process feels easy and fast. Take a business software provider that adds payment processing and instant payouts through embedded banking — users stay engaged, handle financial transactions without leaving the platform, and keep coming back.

Gain insights from customer data

When non-financial platforms add financial tools, they get better data on customer financial behavior. For example, a SaaS provider that manages client subscriptions can track cash flow trends. This information helps them offer more personalized financial solutions, like tailored lending options or credit lines, based on real-time customer data. This level of insight lets businesses improve their embedded finance product offerings and stay competitive.

Stand out from competitors

By adding financial services that others don’t offer, a platform can separate itself from the competition. For instance, a property management software that integrates embedded payments for rent collection is far more appealing than one that just lists properties. This type of integrated banking and financial tools helps the platform stand out from traditional banks and financial institutions, and builds a strong embedded finance ecosystem.

Provide access for underserved users

Many consumers and small businesses — especially those in underserved areas — have trouble working with traditional banks or getting loans. A platform for gig workers, for example, can offer basic banking services or micro-lending through an embedded finance platform, reaching people often ignored by financial institutions. This expands access to essential financial products and makes finance easier for a wider range of people in the United States.

Contact us if you’re considering entering the embedded finance market and want to explore new ways to bring convenience to your customers.

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Banking-as-a-service (BaaS) as a key component of embedded finance in the USA

Banking-as-a-service is a model where licensed banks or financial institutions provide their core banking infrastructure and financial services to third-party businesses through APIs. This lets those businesses embed banking functions into their own financial products and apps without needing a banking license.

This setup allows a non-financial company to offer customized financial solutions to its customers. At the same time, the BaaS provider handles regulatory compliance and the backend infrastructure. This model is a cornerstone of embedded finance in the USA.

BaaS providers typically charge fees for their API services, as businesses pay for the use of the provider's financial infrastructure and the functionality offered through the APIs. This is the monetization model these technology providers typically use. Here is how BaaS providers work:

Expose functionalities through API integration: BaaS providers, such as licensed banks or fintech companies, offer their financial services through APIs. These APIs act as digital connectors, allowing non-financial platforms to easily integrate banking, payment processing, and lending features, creating a seamless experience for users.

Integrate for third-party access: Other businesses, such as retailers or software companies, integrate these APIs into their own applications or platforms. This forms embedded finance partnerships, allowing a non-financial company to become a finance service provider without the overhead of a traditional financial institution.

Deliver embedded services to customers: Customers then access banking services — like opening a bank account, making a payment, or getting a loan — directly within the non-bank company's app or website. This delivers true embedded banking and embedded payments, making finance feel like a natural part of the user journey.

Manage backend operations: The BaaS provider handles the underlying banking operations. This includes managing bank accounts, processing financial transactions, ensuring security, and maintaining strict regulatory compliance for all financial services offered. This allows the non-financial platform to focus on its core business, while the BaaS partner manages the complex finance infrastructure.

For non-financial companies in the United States looking to dive into embedded finance, several prominent BaaS providers offer the essential infrastructure. The companies are Galileo, Unit, and Synaps. They can be called key players enabling embedded finance in the USA.

Galileo, for instance, provides a robust set of functionalities and backend support crucial for embedded banking. This includes debit card issuance, comprehensive payment processing, a sophisticated payment risk platform, and core financial services such as transaction clearing, chargebacks, and fraud mitigation. Non-financial platforms in the USA can partner with Galileo to give their customers access to embedded financial product features.

Challenges and solutions for implementing embedded finance in the USA

The rapid growth of embedded finance in the USA brings significant opportunities for non-financial companies, but implementing these financial services also comes with specific challenges. Businesses aiming to integrate banking, lending, or payment solutions must carefully navigate technical, regulatory, and strategic hurdles to make their services trustworthy.

Managing technical complexity

Non-financial companies must integrate with many APIs from various BaaS providers, payment processing gateways, embedded lending engines, and other financial services. Orchestrating these diverse APIs, each with its own documentation, standards, and update cycles, requires expert development and ongoing maintenance. Additionally, non-financial platforms launching embedded finance in the USA market often face challenges with scalability, system compatibility, and real-time processing requirements for financial transactions.

Solution: Build strong internal development teams or work with leading fintech software development companies for integration, maintenance, and updates. Choose a well-established embedded finance platform that offers pre-built integrations and ongoing technical support.

Navigating regulatory aspects

BaaS providers hold the primary banking licenses, but the non-financial company offering the embedded finance product is responsible for "last-mile" compliance. This means they ensure correct customer onboarding with KYC and AML procedures, manage fraud detection at the user interface, handle customer complaints about financial services, and follow consumer protection laws. Regulators expect the non-bank entity to understand its role in the financial ecosystem for embedded finance in the USA.

Solution: Thoroughly research AML/KYC and other relevant finance regulations. Work closely with the embedded finance provider to implement compliant processes for all financial transactions and data handling.

Securing sensitive customer data

When non-financial companies integrate embedded finance products, their platforms handle highly sensitive information like bank account details, payment histories, and lending applications. This is complex because a non-financial company typically lacks the robust security infrastructure and expertise in financial data protection of a traditional financial institution. This makes companies using embedded finance in the USA a target for malicious attacks.

Also, companies must comply with general data privacy laws like GDPR or CCPA/CPRA and specific financial services regulations like GLBA that govern financial data handling. This multi-layered regulatory environment demands careful attention to avoid penalties.

Solution: Implement stringent data security protocols, including advanced encryption and secure data storage during fintech software development. Ensure compliance with data protection laws specific to the USA. Use the security expertise of a reputable BaaS provider or fintech company, as they protect financial data across financial platforms.

Building user trust

Users trust their banks with money and financial data. When a ride-sharing app or an e-commerce platform offers a bank account or embedded lending, users might question its legitimacy or ability to handle sensitive financial transactions. Despite strong security, users worry about sharing sensitive financial information such as bank account details or payment history with a non-financial company. They might fear data breaches, misuse of data, or a less secure environment compared to a traditional bank.

Solution: Clearly communicate about the financial services offered. Be transparent about partnerships with regulated banks or BaaS providers. Provide excellent customer support for all embedded payments, lending, and banking functions. Consistently deliver a reliable experience to prove credibility as an embedded finance provider.

Choosing the right BaaS partner

Many issues in embedded finance in the USA connect directly to choosing the right BaaS provider. A non-financial company needs a BaaS provider whose licenses and regulatory expertise match the specific financial services it offers and the states where its customers are located in the United States. The fragmented regulatory landscape in the USA means not all BaaS providers cover every type of banking or lending product in every jurisdiction.

Solution: Evaluate potential partners based on their regulatory standing and experience in the United States. Assess the quality of their APIs and the range of financial products they offer. Consider their scalability, security features, and the level of customer and technical support provided. To make your tech journey simpler, cooperate closely with the BaaS provider's consultants to ensure the correct implementation of all functionality.

Why choose Ronas IT as your partner for building apps with embedded finance in the USA?

We’ve been building custom software solutions for over 19 years and have launched multiple projects in the fintech space. Our team has strong experience with API integration and connecting multiple BaaS providers to fintech apps. We know how to embed financial services like embedded payments, lending, and banking into a non-financial platform — so adding embedded finance solutions to your product isn’t a challenge for us. Here’s an example that shows our expertise in action.

Neobank app for the US market

Our client, an entrepreneur from the USA, approached us with the idea to launch a neobank app that would help users safely build their credit score and offer them access to core banking services, even if they had low or no credit history. Our primary objective was to develop a secure, reliable, and user-friendly platform that empowers users to enhance their financial situation and manage everyday transactions with confidence.

We built the mobile app using a microservice architecture and ensured stable connections to a variety of third-party APIs. This included deep integration with BaaS providers: Bond as the main platform, authentication systems, KYC/KYB solutions like Persona and Sardine, and payment services such as Plaid, Pinwheel, and Getkard. Our team created seamless, secure links between all these providers, guaranteeing real-time data exchange and reliability for all finance functions.

We didn’t just connect out-of-the-box solutions — we developed unique features on top of the BaaS infrastructure to address the specific needs of the US market. For example, within this banking mobile app, we implemented a system for issuing secured charge cards, advanced transaction analytics, a flexible rewards program, and secure salary deposit management. Each feature supports end users and helps our client stand out in the competitive US finance market.

We focused on designing clear, minimal, and easy-to-use interfaces for both light and dark modes. Our approach started with mind mapping and close collaboration with the client, using references and anti-references to build the right style. We made sure every screen flows logically and all main features — like card management, transaction tracking, and cashback rewards — are intuitive and accessible. We also designed a complete UI-kit to keep the experience consistent, even as the app continues to grow.

Data protection was a top priority — especially given the strict standards for both regular and embedded finance in the USA. We used a combination of microservices, strict user permissions, data minimization, and secure authentication (Auth0) to safeguard financial data. Sensitive information was never stored on our servers and always sent directly for verification or processing. We passed certifications such as SOC 2, PCI DSS, and ISO/IEC 27001, confirming our system follows the best practices in data protection and regulatory compliance.

Our experience with this and other fintech projects and embedded finance solutions in the US means we understand the requirements, challenges, and expectations in this market. We have expertise in evaluating and integrating top BaaS providers, local KYC vendors, and rewards platforms that meet US standards. Our team ensured the app aligns with US regulatory demands and customer preferences, giving the product strong potential in the local market.

We helped our client launch a neobank app that’s stable, secure, and built to scale in the US finance environment. Today, we continue to support both fintech startups and non-financial businesses in developing embedded financial services tailored to their customers’ needs.

If you’re planning to launch a financial product or add embedded banking to your platform, don’t hesitate to contact us.

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Wrapping up

Embedded finance has the power to transform any company — whether fintech or not — by opening up new revenue streams, enhancing customer loyalty, providing valuable insights into financial behavior, and driving financial inclusion. By integrating banking services, embedded payments, lending, or insurance directly into your platform, you can offer customers greater convenience and set your business apart in the competitive US market.

At the same time, implementing embedded finance in the USA comes with many challenges: technical complexity, strict regulatory requirements, the need for robust data security, and building customer trust are just a few. Success requires close collaboration with a technology partner who understands the specifics of BaaS providers, effective API integration, and US compliance standards — so your solution works smoothly and meets all legal requirements.

Our team at Ronas IT helps both fintech projects and non-financial companies implement complex embedded finance solutions. If you are looking for a partner to launch embedded finance product in the USA, contact us — we’ll help you build a product that’s reliable, secure, and delivers real value to your customers.