Originally appeared in Finextra

Embedded finance has moved from a niche innovation to a core business strategy, reshaping customer engagement, employee empowerment and growth. In fact, three quarters of firms say embedded finance directly fuels customer growth – a metric that goes beyond adoption and points to measurable impact.

That is just one of many metrics from our 2025 survey of 515 director-level decision-makers across banking, fintech, HR, retail and technology that points to 2026 being a year of acceleration for embedded finance. The data offers a clear preview of what’s ahead this year: embedded finance is no longer just a growth lever – it’s becoming a strategic cornerstone for modernisation and competitive advantage.

Embedded finance is everywhere, driven by customer value and brand differentiation

Among the decision-makers surveyed, nearly all (99%) have adopted embedded finance capabilities, with payments and banking cited as the most common features. Why the broad uptake? Most leaders cite strengthening customer relationships (45%), creating seamless user experiences (38%), and enhancing brand differentiation (35%) as top motivators. Others emphasise better risk assessment (34%) and faster onboarding (34%) as additional benefits.

In 2024, 91% of decision-makers cited embedded finance as a means of improving client retention and experience. In 2025, those perceptions matured into reality, with almost total adoption and proven benefits that will continue driving momentum in 2026.

Despite ongoing challenges, satisfaction remains overwhelmingly strong

Adoption is nearly universal, but scaling embedded finance isn’t always frictionless. More than nine in ten companies (93%) reported some friction in offering embedded finance, citing transparency and flexibility (42%), technical and integration challenges (40%), compliance and security (39%), and strategic alignment and ROI (38%) as key pain points.

Still, satisfaction levels remain high. More than 93% of companies say they are very or extremely satisfied with their embedded finance capabilities – a clear sign that the payoff outweighs the pain.

In 2024, risk conversations centered on compliance and security. In 2025, leaders were more focused on execution: driving efficiencies, building and integrating partnerships, and scaling responsibly for 2026 and beyond.

Upgrades and enhancements: Where are decision-makers investing?

With adoption high and satisfaction strong, attention is turning to enhancement. More than three in four companies (76%) plan to upgrade their embedded finance capabilities within the next 12 months, especially in banking (80%) and payments (72%), which remain the foundation for most embedded finance initiatives.

Retail and tech companies are leading the charge, with around 40% targeting enhancements in the next six months. Banks are also investing heavily, with 72% planning to strengthen offerings as they modernise their digital ecosystems.

Beyond improving existing features, many are expanding into new areas focused on employee and customer value. More than six out of ten plan to add payroll benefits, 58% are adding new payment tools, and 57% are introducing investing capabilities.

For HR solution providers, payroll benefits (73%) and money movement (73%) top the list of new additions, signaling a growing emphasis on employee empowerment through financial wellness tools. Fintechs, meanwhile, are pushing further into banking itself, with 68% planning to add new banking features in the year ahead.

Trust, technology and alignment define successful partnerships

As adoption scales, partnership strategies are becoming more deliberate. Nearly 70% of companies outsource at least some portion of their embedded finance delivery, with 37% using a single provider for all capabilities and 31% mixing multiple providers.

Trust, compatibility and customisation have emerged as the most important selection factors. Nearly 90% of companies say trust and alignment drive their partnerships, followed by technology compatibility and customisation (76%), security and compliance (63%), delivery and execution (57%), and value and pricing (41%).

The focus for embedded finance decision-makers is now centered on finding the right partner – one that can adapt, innovate and align with evolving goals.

The engine driving business transformation

Embedded finance has evolved from an emerging trend into a mature growth engine, powering innovation across industries. As companies refine their offerings, upgrade technologies, and deepen strategic partnerships, embedded finance is shaping the future of customer engagement, employee empowerment, and brand differentiation.

The message is clear: in 2026, embedded finance isn’t optional – it’s a strategic imperative. Businesses that invest now will be better positioned to deliver seamless, secure financial experiences that drive loyalty and unlock new revenue streams.