Payment giant Adyen has reported a significant uptick in demand for its embedded finance offerings throughout 2024, signaling a major shift in how businesses approach financial services integration. This trend reflects growing market confidence in streamlined financial solutions that operate within existing business platforms.
The Amsterdam-based fintech powerhouse revealed during its latest earnings call that embedded finance transactions increased 43% year-over-year, substantially outpacing growth in its traditional payment processing segments. Adyen’s Chief Financial Officer Ethan Jorris pointed to this development as “clear validation that businesses increasingly view financial services as critical infrastructure rather than separate components.”
Embedded finance lets companies incorporate banking, lending, and payment features directly into their customer-facing platforms. This approach eliminates the traditional separation between commercial activities and financial services. A restaurant ordering app might offer instant financing for catering orders, or a retail platform could provide buy-now-pay-later options without redirecting customers elsewhere.
“We’re seeing extraordinary adoption across multiple sectors,” said Melissa Chen, Adyen’s Head of Platform Strategy. “From retail to transportation, companies are recognizing that offering financial services directly enhances customer experience and creates new revenue streams.”
The data supports this observation. Adyen processed over €718 billion in embedded finance volume during the first three quarters of 2024, representing nearly 28% of its total transaction value. This marks a dramatic shift from just 12% in the same period last year.
Industry analysts attribute this growth to several factors. The maturation of APIs (Application Programming Interfaces) has simplified integration. Regulatory frameworks have adapted to accommodate these hybrid models. Consumer preferences have evolved to favor seamless experiences.
“Embedded finance is no longer experimental – it’s becoming standard business practice,” explains financial technology researcher Dr. James Moretti of Columbia Business School. “The companies that fail to integrate these capabilities risk falling behind competitors who offer more comprehensive solutions.”
Adyen’s success in this space comes amid intensifying competition. Traditional financial institutions, tech giants, and specialized fintechs are all vying for market share in what Morgan Stanley estimates will be a $7.2 trillion global opportunity by 2030.
Small and medium businesses have emerged as particularly enthusiastic adopters. Lacking resources to build custom financial infrastructure, these companies leverage Adyen’s platform to offer sophisticated financial services previously available only to larger enterprises. Nearly 68% of new embedded finance implementations came from businesses with fewer than 500 employees.
“We couldn’t afford to develop our own payment systems,” says Tara Wilson, founder of GreenCart, an online sustainable grocery marketplace. “Working with Adyen lets us offer installment plans and loyalty rewards directly in our shopping experience. Our conversion rate jumped 22% after implementation.”
Geographic expansion has further fueled growth. While North America and Western Europe remain dominant markets, Adyen reported triple-digit percentage increases in embedded finance adoption across Asia-Pacific regions. The company has expanded its compliance frameworks to accommodate regulatory requirements in twelve new markets during 2024.
This growth hasn’t come without challenges. Adyen acknowledged in its report that maintaining security standards across diverse implementations requires significant investment. The company increased its compliance team by 36% and doubled spending on fraud prevention technologies compared to 2023.
The company faces other headwinds too. Regulatory scrutiny continues to intensify globally as embedded finance blurs traditional distinctions between banking and commerce. Several jurisdictions are reviewing existing frameworks to address potential consumer protection concerns when non-financial companies offer financial products.
Despite these challenges, Adyen remains optimistic about embedded finance’s trajectory. The company projects continued strong demand throughout 2025 and has announced plans to expand its offering with advanced lending capabilities and enhanced data analytics for merchant partners.
Industry watchers believe this trend represents a fundamental shift in how financial services are delivered. “We’re witnessing the decentralization of banking,” notes financial consultant Maria Hernandez. “Financial services are becoming features within other experiences rather than standalone products.”
For consumers, this evolution promises greater
