In this episode, host Lars Markull speaks with Anniina Heinonen, Managing Director at Wolt Payments, about how the Finnish food delivery platform transformed from a restaurant marketplace into a regulated financial institution. Wolt operates across 20+ European markets and has built embedded finance capabilities that go far beyond simple payment processing. Anniina explains how PSD2 compliance became the catalyst for Wolt's financial services journey, leading to a comprehensive suite of products that support merchant growth while creating competitive advantages for the platform.
How PSD2 Compliance Sparked Wolt's Embedded Finance Strategy
- PSD2 regulations required Wolt to establish an in-house payment institution in 2021 for merchant acquiring compliance
- The decision to build capabilities in-house rather than outsource created strategic leverage across 20+ European markets
- PSD2 accelerated existing Fintech thinking that was already embedded in Wolt's DNA from the early days
- Platform businesses naturally require sophisticated financial infrastructure to manage multi-stakeholder money flows
- The regulatory requirement became an opportunity to control and optimize the entire payment experience
Wolt's Complete Financial Product Portfolio
- Merchant Acquiring: Regulated payment acceptance and payout services for restaurant partners across Europe
- eWallet Functionality: Gift card credits stored as e-money in the app, creating customer retention and convenience
- Wolt Capital: Cash advance lending product offering tens of thousands of euros to restaurant partners
- All products leverage Wolt's unique position in the payment flow and rich merchant data
- Integration across products creates seamless experience for both customers and merchants
Revenue-Based Lending for Restaurant Partners
- Wolt Capital provides unsecured cash advances based on merchant performance data from the platform
- Automatic revenue-based repayment takes percentage from daily payouts, adapting to seasonal fluctuations
- Merchants use funding for equipment upgrades, premises renovation, working capital, and new venue openings
- Partnership with Finmid enables lending across 14 European markets in less than one year
- Risk management improved through control of payment flows and access to real-time merchant data
Measuring Success Beyond Direct Financial Product Profitability
- Success measured by merchant growth on the platform rather than direct lending profits
- Focus on helping restaurants maximize potential rather than optimizing financial product margins
- Embedded Finance creates flywheel effect: better-funded merchants generate more platform revenue
- Conservative approach avoids force-pushing products, making them available when merchants have a genuine need
- Long-term platform growth is more valuable than short-term financial services revenue
Building Regulated Financial Services In-House
- Wolt Payments operates with full payment institution and e-money licenses across EEA markets
- Team of just 15 people manages regulated activities, supported by hundreds across product, engineering, and local operations
- Licenses cover all payment services and e-money services except money remittance
- In-house approach provides control over development roadmap and customer experience
- Regulatory compliance includes anti-money laundering and financial crime prevention as major focus areas
Practical Advice for Non-Financial Companies Entering Embedded Finance
- Start with a few knowledgeable people in-house to establish proper foundations
- Don't build embedded finance products simply because you can - focus on genuine customer problems
- Getting the basics right early makes future expansion and complications easier to handle
- Consider in-house capabilities when managing international business across multiple European markets
- Building embedded finance creates better services for the entire ecosystem when done properly