From Food Delivery to Embedded Finance - Wolt's Journey to Financial Services with Anniina Heinonen

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