Hi {{first name|embedded finance friend}}
Summer is here! Well, it’s still raining in Berlin, but the number of Embedded Finance news announcements has come down significantly.
Since I was expecting this, my newsletter will also enter “summer mode”. But don’t worry, you will still get a weekly newsletter. For the next few weeks, I will be aggregating all relevant Embedded Finance stories of the first seven months of 2025 for you.
Since this will be too much for one mailing, I decided to split the news into the different financial products. As you hopefully know, the term Embedded Finance consist of the five sub-categories: Banking, Lending, Payment, Investment and Insurance.
Thus, this newsletter structure for the next few weeks will look like this:
- August 5th → Banking (today!)
- August 12th → Lending
- August 19th → Payment
- August 26th → Investment & Insurance
And of course, if a new major announcement arrives earlier than that, then I will incorporate it or adjust the structure.
PS: This mailing is longer than usual. If you are using Gmail, this email might get clipped.
What are the biggest mistakes when building Embedded Finance products? Join us on Friday August 29th at 11am (CEST) to learn, share and discuss. We will be joined by Fintech executitve and newsletter subscriber Christian von Hammel-Bonten to help us walk through the biggest mistakes. And after each mistake, we will take a break and discuss with the audience.
Register now, spots are limited
How did you like this type of edition? Please let me know via the feedback at the end of this mailing.
And now let’s dive in 👇
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Top Non-Financial Brand Stories (Jan-Jul 2025)
My comment: Embedded Finance combines non-financial with financial products. The non-financial brands are the front-end players. Their core products aren't financial services, but they can be combined with them. This could be any non-financial brand, even companies like Lego, DHL, or Total. But unlike what many think, this isn't purely driven by the non-financial company's brand, but by how well the financial product is embedded. While those three companies are universally known, they might struggle to connect their core product to banking. For others, it's much easier.
Not surprisingly, digital accounting for SME and freelancers was the most significant driving force of Embedded Finance in 2025 so far. Accounting and banking are so intertwined, but historically, it was the user's job to combine the two worlds. Digital accounting providers are now launching banking products right, left and centre. It's hard to believe that in a few years there will be any digital accounting provider left that hasn't embedded a banking product in some way.
But of course, there was not only positive news from non-financial brands in Embedded Banking and in 2025, we have seen two major setbacks.
Digital Accounting for SMEs & Freelancers
🇧🇪 Accountable → The Freelancer-focused tax app launches business banking with Swan in February and gets acquired by Visma in April.
🇩🇰 Ageras → Digital accounting provider acquires Storebuddy, the missing puzzle piece for Ageras in Embedded Finance?
🇬🇧 Juuli → The freelancer-focused invoicing provider launches a credit card with Stripe.
🇳🇱 Snelstart → The digital accounting provider initially partners with Flow in March to embed banking products into its software, and acquires the infrastructure provider in July.
🇭🇰 Vistra → The business service provider partners with Airwallex to launch a global business banking solution.
🇳🇿 Xero → The global digital accounting provider partners with business banking provider Bluevine in the US; one of its many steps to combine accounting with banking.
Automotive
🇬🇧 AA → The British Automobile Association partners with NatWest Boxed to offer its members savings and lending products.
🇩🇪 Porsche → The luxury carmaker switches the provider for its co-branded credit card offering, and is moving from German digital bank DKB to the Scandinavian duo Enfuce and Nordiska Bank.
Travel
🇳🇱 Shuttel → Mobility-focused expense management provider launched a mobility expense card in partnership with Enfuce and Visa.
🇪🇸 Travelperk → Corporate travel solution provider acquires Swiss corporate expense management provider Yoko.
Other
🇺🇸 Apple → Visa makes a $100 million bid to replace Mastercard on Apple Card as card issuer; a few days ago, it was reported that JP Morgan has the best chance to replace Goldman Sachs as banking partner (Reuters).
Lowlights
🇮🇩 Bukalapak → The partnership between the Indonesian e-commerce provider and Standard Chartered was quietly shut down; internal alignment issues?
🇩🇪 Metro → Wholesaler shuts down its financial service unit, Metro FS, which offered a detached debit card and BNPL features to restaurant and hotel businesses.
Top Banking Infrastructure Stories (Jan - Jul 2025)
My comment: If the non-financial brands are the front-end providers, the infrastructure providers are the back-end. They enable the brands to offer financial services, and their offering is often a combination of technology (=APIs) and licences (=regulatory umbrella).
Those providers who provide a one-stop shop solution are usually referred to as banking-as-a-service providers. We saw a significant rise in this segment a couple of years ago (likely also because of cheap money), but reality has caught up. As a result, many providers are either struggling or pivoting. But that doesn’t mean no providers can succeed; the market is there. But we likely don’t need many providers with a broad focus, and I am expecting quite a few providers to find their niche (which doesn’t necessarily mean a small market size).
Funding and M&A
🇬🇧 BKN301 → The MENA-focused banking-as-a-service raises 21.5 million to increase its focus on Europe.
🇩🇪 Dock → The assets from bankrupt banking-as-a-service provider were acquired by Rakuten, with a purpose unknown.
🇬🇧 Marqeta → Isser processor acquires Transact Pay, a BIN sponsor in the UK and EU and a necessary partner for many of Marqeta’s customers.
🇩🇪 Pliant → The corporate expense management provider that also offers a card-as-a-service solution acquires Hi Health; a card solution for insurance companies to improve the experience for their customers.
🇩🇪 Sutor Bank → Swiss Hypothekarbank Lenzburg invested in the German bank and banking infrastructure provider Sutor Bank.
🇫🇷 Swan → The French embedded banking provider raises USD 44 million.
Launches & partnerships
🇫🇷 Qonto → The business banking provider enters the as-a-service space and launches Qonto Embed. Its first major partner is payment service provider Mollie.
🇬🇧 Weavr → Embedded banking provider announces partnership with B4B Payments (a Banking Circle company) to bring more of the card stack in-house.
Lowlights
🇸🇪 Intergiro → Swedish regulator revokes the e-money licence from the payment and banking-as-a-service provider, but the company is appealing the decision.
🇩🇪 Solaris → Banking-as-a-service pioneer announces new funding from SBI Holdings, which rescues the company but leaves many investors and employees empty-handed.
Podcast with Embedded Banking Stories (Jan-Jul 2025)
My comment: In my bi-weekly podcast, I interview the builders and shapers of Embedded Finance. From all 2025 episodes, I picked the following five episodes as they had a strong focus on Embedded Banking or Banking-as-a-Service. Maybe some suitable material for your time at the beach or in the mountains?
🇪🇸 Reinventing Banking for Property Managers - with Enrique Sanchez from Aareon Spain (Podcast)
🇩🇪 Accountable built an embedded banking product because PSD2 failed them with Tino Keller (Podcast)
🇳🇱 How can banks fight back in embedded finance? With Bizcuit Founder Hessel Kuik (Podcast)
🇸🇦 What's next for Banking-as-a-Service in Europe and Saudi Arabia with Sophie Guibaud (Podcast)
🇩🇪 From Starbucks' Wallet 1.0 to Merchant Wallets 2.0 with Arda Cagaptay (Podcast)
Thank you for reading. I hope you enjoyed this edition.
My newsletter, podcast, and event activities are free, but I need your support to continue. Please share Embedded Finance Review with your friends and coworkers, and let me know your feedback (links above).
And if you need help understanding, building, or launching an embedded finance product, visit my website and get in touch with me.
Best wishes from Berlin,
Lars Markull (LinkedIn)
