Embedded finance is reshaping how financial services are delivered across Europe, offering a critical growth edge for tech startups and established businesses alike. Having spent two decades managing teams and bootstrapping my own startups, I’ve experienced firsthand how economic revolutions begin not with loud proclamations but through an almost quiet evolution in how things are done. Embedded finance is the hidden change that’s transforming European tech, and it’s likely already affecting your industry.
Here’s the thing: You may already be using embedded finance without realizing it. Whether it’s splitting online payments with friends in a food delivery app, accessing buy-now-pay-later options at checkout, or receiving your payout instantly via a rideshare platform, embedded finance products have become part of our daily lives. For entrepreneurs and businesses, these tools are opening up new ways to drive revenue, enhance customer experience, and streamline operations.
Let’s dive into why embedded finance is not just a trend but the backbone of European tech’s accelerating growth, who’s leading the charge, and how you, particularly as a female entrepreneur in Europe, can ride this wave effectively.
Why Embedded Finance Matters Right Now
Financial services used to stand alone, separate apps, separate logins, separate experiences. Embedded finance obliterates those boundaries by weaving financial transactions directly into the tech tools we use daily. It works because it adapts to the way consumers and businesses engage in the modern world. Here is why it’s a game-changer:
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Market Impact: According to a McKinsey report on embedded finance in Europe, revenues from embedded finance surged to €20-30 billion as of 2023. This represents only the start, by 2030, embedded finance is expected to generate over €100 billion in revenue, capturing 20-25% of European retail and SME lending.
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Appeal to Non-Financial Companies: Brands that offer contextual, personalized financial tools significantly boost customer retention while tapping into lucrative revenue streams beyond their core products. Think of messaging apps introducing payment wallets or online travel agencies offering trip insurance right when customers book flights.
Who’s Leading Europe’s Embedded Finance Revolution? Key Players to Watch
Europe’s embedded finance growth benefits from robust players across three tiers of the value chain. These include infrastructure providers, orchestration platforms, and forward-thinking brands embedding services directly into their ecosystems.
1. Infrastructure Providers: Building the Rails
Companies like Solaris, Swan, and Paynetics handle the regulatory and technical heavy lifting. They provide the necessary tools such as e-money licenses, APIs for card payments, and compliance solutions, allowing non-bank platforms to embed complex financial processes easily.
For instance, France-based Swan is enabling small SME-oriented platforms to launch debit card programs for local businesses. Meanwhile, Paynetics powers features like digital wallets, facilitating seamless transactions for platforms including Viber Pay.
2. Orchestration Platforms: Simplifying Integration
Platforms like Weavr and Toqio equip companies with “finance in a box” solutions to get embedded finance off the ground fast. These orchestrators reduce time-to-market, especially for startups like SaaS solutions or niche marketplaces.
3. Customer-Led Platforms: Where Finance Meets Experience
With embedded finance, consumer brands are boosting customer loyalty while growing recurring revenue. Whether it’s Wolt offering working capital loans to restaurant partners or Viber attracting millions of new app users with Viber Pay, the ability to inject financial services into existing ecosystems proves invaluable.
A Step-by-Step Guide to Leveraging Embedded Finance as an Entrepreneur
If you’re running a startup or planning your next entrepreneurial move, consider incorporating embedded finance for growth. Here’s how to start:
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Identify Your Customer’s Friction Points
What transactional challenges do your customers face? Perhaps they need affordable monthly financing, instant payouts, or loyalty rewards. Start by listening deeply to these needs. -
Partner with Reliable Partners
Consider working with companies like Solaris or Paynetics if you need robust backend systems, or Toqio for faster deployment. These trusted names handle compliance so you can focus on user-facing innovation. -
Start Small, Measure, and Scale
Test one embedded finance feature, for example, launch a digital wallet in your app to streamline transactions. Based on user adoption (and feedback), add services like installment payments or in-app loans. -
Prioritize Data Security
Regulatory compliance isn’t optional. Ensure the user data you handle meets Europe’s stringent GDPR rules. Work with reputable vendors who emphasize transparency and compliance. -
Measure Impact Across Metrics
Every embedded finance feature should correlate to enhanced metrics, whether it’s higher customer retention, bigger transaction volumes, or smoother onboarding for SME partners.
Lessons Learned: Mistakes to Avoid
My experience bootstrapping ventures has taught me that thoughtful planning is crucial. Avoid these common pitfalls:
- Using Embedded Finance Only for Buzz: If a finance feature doesn’t solve a real customer need or fit naturally into your ecosystem, it will frustrate users rather than delight them.
- Underestimating Regulatory Weight: Regulations in Europe can be tough. Founders who cut corners in compliance may face delayed launches, user mistrust, or hefty fines.
- Ignoring Scalability Early: Start with simple offerings, but ensure your infrastructure can grow to meet increasing demand.
Insights for Women Entrepreneurs
As the creator of the Fe/male Switch Startup Game, I aim to bring tools and strategies like this closer to female leaders. Women often outperform in industries driven by customer insight and empathy, two qualities essential to embedding finance meaningfully. Now is a fantastic time for women entrepreneurs to adopt these tools because they level the playing field. Whether you’re in healthtech, fashion, or sustainability, embedded finance allows you to deliver more value without needing a banking background.
And since women generally bootstrapping their ventures are often cautious about over-investing, partnering with adaptable, low-cost embedded finance providers means you retain control while staying innovative.
Conclusion
Embedded finance isn’t just about money, it’s about creating ecosystems, simplifying daily life, and meeting people where they already are. Its growth in Europe reflects that customers want convenience, businesses need new revenue streams, and reliable innovators can deliver both. Whether you’re a solo entrepreneur building your minimum viable product or running a growing team, adding embedded finance could make your offering indispensable.
For me, this shift is massively personal. As a bootstrapper and a woman in tech, I'm rooting for more inclusion, smarter tools, and opportunities to disrupt the old normal. European tech has immense potential, and I believe that you, especially if you’re an entrepreneurial woman steeped in adaptability, stand to benefit hugely. Take a leap; tech is your playground.
FAQ
1. What is embedded finance?
Embedded finance refers to the integration of financial services like payments, lending, and insurance into non-finance platforms such as apps, marketplaces, and SaaS tools. Learn more about embedded finance on The Recursive
2. Why is embedded finance growing in Europe?
Embedded finance is becoming essential as customers prefer financial services embedded into apps they already use, such as delivery platforms or e-commerce sites. Revenue is forecasted to exceed €100 billion by 2030, capturing up to 25% of SME lending markets. Explore McKinsey’s report on embedded finance
3. Who are the major infrastructure providers in European embedded finance?
Key players include Solaris, Paynetics, Railsr, Modulr, and Swan. They manage the regulatory and technical frameworks allowing financial embedding. Check out Solaris | Learn about Paynetics
4. How do orchestration platforms help startups embed finance?
Platforms like Weavr and Toqio offer “finance-in-a-box” solutions that simplify deployment for companies wanting to embed financial services quickly. Discover Weavr | Learn about Toqio
5. Can embedded finance improve user engagement?
Yes, companies like Rakuten Viber and Wolt use embedded finance features like wallets and loans to enhance user loyalty and boost repeat business. Learn how Viber Pay integrates finance
6. What are common challenges for embedded finance providers in Europe?
Compliance, profitability, and scalability are key challenges. Providers like Solaris have faced regulatory scrutiny, while profitability remains elusive for many players in the market. Explore insights on Solaris from The Recursive
7. What industries benefit most from embedded finance?
Retail, e-commerce, travel, and SaaS are leading beneficiaries, embedding services like BNPL, insurance, instant payouts, and wallets to streamline transactions. Learn about EF in modern e-commerce
8. How are women entrepreneurs positioned to leverage embedded finance?
Women leaders excel in industries focused on user experience and customer loyalty, making embedded finance a strategic addition to enhance value and compete effectively. Discover tools for female entrepreneurs
9. What is the future of embedded finance in Europe?
The market is rapidly maturing with trends like embedded insurance and B2B financing. Consolidation among providers is expected, while technology like AI will drive faster personalization. Explore Deloitte’s embedded finance report
10. What steps should startups take to adopt embedded finance?
Start by identifying customer pain points, collaborate with trusted partners like Solaris or Paynetics, and ensure compliance with data security regulations like GDPR. Begin small and scale based on feedback and metrics. Find insights into scalable finance adoption
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
