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

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