Hi Embedded Finance Friend
It's December already! The year is almost over. I am sure you are eagerly waiting for all the reviews, recaps, and wraps of 2025 from Spotify, Strava, and so on.
Last year, we published a podcast episode to recap 2024. But in 2025, we want to include the view of as many subscribers as possible. Thus, I have invited Paul Staples for our final virtual event of 2025.
We will discuss the highs, lows, and learnings from 2025 in Embedded Finance. As usual, our event is hosted on a regular video call, and we are looking forward to lots of audience participation (and maybe Christmas decorations in the background?!).
Register now and join us on Friday, 12th at 11 am (CET).
And now let’s dive in 👇
From the Knowledge Hub:
The 5 Biggest Mistakes When Building Embedded Finance Products!
During one of our virtual events, I discussed with Christian von Hammel-Bonten the five biggest mistakes companies make when building Embedded Finance products. We decided to put the discussion into writing.
The five most common mistakes we see:
- Don't forget your core business: Embedded finance can drive revenue, but if your core product suffers, you lose everything.
- Don't just start: Financial services are complex. Define your strategy, understand requirements, and select partners based on what you actually need, not just price.
- Don't forget to involve all stakeholders: This touches IT, legal, marketing, customer service, and operations. Get not just management buy-in, but make them understand it. This isn't another project; it's a strategic decision.
- Don't underestimate the complexity: Technical integration is the "easy part". Regulatory and legal frameworks are where things get tricky. Verify everything with legal advice upfront.
- Don't lose focus: Resist the temptation to build everything at once. Master one service before expanding to the next.
Read the full article on Embedded Finance Review (with more details and nuances).
And if that's still not enough, reach out and let's talk!
Green Dot splits its bank and embedded finance unit
US bank and embedded finance provider Green Dot is splitting its business into two independent entities. Smith Ventures is acquiring its embedded finance unit, Arc, for $690 million, while CommerceOne Financial is acquiring Green Dot Bank. The split makes operational sense: the embedded finance unit needs speed and capital flexibility to innovate, while banking regulations and capital constraints weigh down a traditional bank. By separating, each can operate with explicit focus. What's particularly interesting is what comes next. CommerceOne is positioning itself as a sponsor bank for multiple fintech partners, not just Green Dot's platform. Small banks have struggled with embedded finance because building compliance infrastructure and technical integration is expensive. If CommerceOne succeeds as a turnkey sponsor bank, it could unlock partnerships with many more embedded finance players.
Read the full story on Embedded Finance Review.
Vertical Fintech Bueno Adds Visa Cards via Sefide Infrastructure
Spanish vertical fintech Bueno is launching Visa debit cards for foreign property owners in Spain through Sefide, a Spanish electronic money institution owned by Loomis Group. Bueno serves expats and second-home owners with a banking and property management platform that lets customers open Spanish IBAN accounts in 10 minutes and manage utilities and taxes. Cards extend Bueno's existing banking services, enabling everyday spending for customers who split time between Spain and other countries while generating interchange revenue. Sefide, operating as a Spanish EMI regulated by the Banco de España, provides the complete regulatory infrastructure through its Banking-as-a-Service model, handling everything from IBAN accounts to card issuance and compliance. This partnership showcases how infrastructure providers like Sefide are supporting vertical fintech clients in regulated markets, and it signals Bueno's evolution from a utility payment account toward becoming a more complete banking alternative.
Read the full story on Embedded Finance Review.
In other Embedded Finance news
- Mastercard launched Access Pass, a program that layers digital designs and exclusive perks onto existing payment cards without issuing a new card. Debuting with the McLaren Formula 1 Team and First Abu Dhabi Bank in the UAE, it's designed to deepen consumer engagement and drive card usage through passion-driven experiences. (Finextra).
- Joshua Silver, Founder and CEO of US Embedded Payments provider Rainforest, shared on LinkedIn his personal 11-step play to build payments for a vertical SaaS provider (LinkedIn)
- US Lead Bank raised $70 million in a Series B round, pushing its valuation to $1.47 billion. The Kansas City-based bank, which specialises in banking-as-a-service for fintech companies, has become an essential partner to companies such as Affirm, Ramp, and Stripe (Fintech Futures).
Thank you for reading. I hope you enjoyed this edition.
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And if you need help understanding, building, or launching an embedded finance product, visit my website and get in touch.
Best wishes from Berlin,
Lars Markull (LinkedIn)
