Top Embedded Finance Companies for SMBs in 2023

Embedded finance has become a buzzword in the financial technology (fintech) industry, and for good reason. The pandemic has accelerated the shift to digital transactions, and consumers now expect a seamless, integrated experience when interacting with businesses. Embedded finance, which refers to financial services integrated into non-financial platforms, can help businesses meet these expectations and boost revenue, customer engagement, and loyalty.

According to a recent survey by Capterra, 94% of businesses that use embedded finance report increased revenue. For small and midsize businesses (SMBs), offering a form of embedded finance—such as buy now, pay later financing or e-wallet integration—can be especially beneficial. In fact, only 14% of business leaders in the US say they don't plan to invest in embedded finance in the next year.

However, navigating the complexity of embedded finance can be daunting. With so many forms of embedded finance technology available, it can be difficult to decide when to implement this software and for which reasons. To help businesses stay ahead of the curve, we've compiled the top trends and companies to keep in mind for embedded finance in 2023.

Top Embedded Finance Companies

• Cybrid - Cybrid is a top provider of embedded finance solutions, offering technical integration, bank partnerships, and regulatory compliance for businesses looking to launch their crypto initiatives quickly and efficiently. As the cryptocurrency market continues to gain mainstream acceptance, Cybrid's expertise in this area has become increasingly valuable. By providing businesses with the tools and support they need to navigate the complexities of crypto, Cybrid has become a trusted partner for businesses looking to offer innovative financial products to their customers.

• Stripe - Stripe is a well-known name in the fintech industry, offering a variety of embedded finance products, including an on- and off-ramp API with banking. Its services allow businesses to accept payments and manage finances seamlessly.

• Plaid - Plaid is another top provider of embedded finance solutions, with a focus on enabling businesses to connect with consumers' bank accounts securely. Its technology provides businesses with the ability to offer embedded payments and finance products easily.

• Zerohash - Zerohash is an embedded crypto infrastructure company that allows companies to integrate digital assets. They hold MSB licenses with FinCEN and FINTRAC, just like Cybrid. Why Cybrid stands out as a top embedded finance company because of its ability to provide a seamless and integrated end-to-end experience for businesses, including FBO bank accounts for USD and CAD. Avoid the hassle and expense of a costly integration.

• Walnut - Walnut Insurance is an embedded insurance provider that offers a variety of insurance products to businesses. Walnut Insurance offers a range of insurance products, including property and casualty insurance, cyber insurance, and liability insurance. Their technology enables seamless integration of these products into existing platforms, making it easy for businesses to implement and manage embedded insurance solutions.

Embedded Finance Trends to Watch in 2023

1. Increased Adoption and Revenue - As mentioned earlier, businesses that offer a form of embedded finance have seen increased revenue since implementation. In 2023, we can expect to see more businesses adopt embedded finance solutions to stay competitive and offer personalized experiences.

2. Consumer Focus - Consumers want personalized shopping experiences, and businesses are turning to embedded finance solutions to meet this demand. Embedded payments and consumer-oriented products such as buy now, pay later financing are among the most popular solutions.

3. Economic Downturn Preparedness - The pandemic has highlighted the need for businesses to be prepared for economic downturns. Embedded finance can be a valuable tool for SMBs during these times, as 87% of businesses say they would be more likely to use a form of embedded finance during a recession.

4. Mixed Implementation Strategies - While businesses agree that embedded finance has had a positive impact on their revenue, they are divided on how to offer these solutions. Some businesses choose to partner with third-party providers, while others prefer to build or buy embedded finance solutions themselves.

5. Regulatory Scrutiny - As embedded finance solutions become more widespread, they are facing increased regulatory scrutiny. Businesses need to be mindful of regulations and keep their customers' best interests in mind when offering these products.

In conclusion, embedded finance is a valuable tool for businesses looking to boost revenue, customer engagement, and loyalty in 2023. By keeping these top trends and companies in mind, businesses can navigate the complexity of embedded finance and implement the solutions that best meet their needs.