In the past few weeks, we haven’t seen a big non-financial brand enter Embedded Finance with their first product launch; however, our usual Big Tech suspects have made multiple Embedded Finance moves:
Amazon: Amazon discontinues their co-branded Credit Card in Germany but launches one in Brazil in partnership with Bradesco. Due to a strategic change at Amazon’s banking partner in Germany, Amazon was forced to find a new one but likely could not find one that offered the attractive terms Amazon was asking for. A co-branded credit card seems to be the only choice for Amazon when it comes to payment and banking, but personally, I would love to see a truly embedded card offering from them.
Apple: That Apple’s banking partner, Goldman Sachs, is looking for a way to get out of the Apple Card product was already public knowledge. It is interesting that even Goldman Sachs is not able to make a profit with a partnership with Apple, but this is likely due to the detailed requirements from Apple. Probably none of us are really surprised that Apple is a company with complex demands. Additionally, the US company is looking to increase its footprint in India. Tim Cook visited the country a few months ago to celebrate the very first Apple Store opening in Mumbai; therefore, it is not surprising that the tech company is in discussion with Indian bank HDFC to launch a co-branded credit card.
Shopify: Our Embedded Finance role model launched a charge card in the US, which seems like a sensible extension of their existing Shopify Balance banking product. Both products are powered by Stripe, and, like many other US companies recently, Shopify decided against a traditional credit card (where a balance can be carried forward) but requires the card owner to pay the full balance at the end of the month.
Twitter: The iconic Twitter bird is gone, and we welcome a big X to our smartphone screen. While this change seems small, it represents the intended move by Elon Musk to add financial functionalities to Twitter. So far, the company has received four financial licenses in June and July.
Uber: Uber teams with Cover Genius to Insure Brazilian Drivers. Uber’s banking product is often used as an Embedded Finance example, but the mobility platform is also moving into insurance products.
