How Banks and Fintech Firms Reshape Embedded Financial Experiences

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Key takeaways:

• Embedded finance market growth is explosive. U.S. revenues are projected to grow to $140 billion by 2030.
• APIs and bank-fintech partnerships enable innovation. API-driven infrastructure and deeper collaboration between banks and fintechs allow businesses to embed payments, deposits and lending directly into their platforms.
• B2B payments represent a massive opportunity. The embedded B2B payment market transaction volume could reach $16 trillion globally by 2030.
• Fifth Third’s Newline platform accelerates adoption. The platform helps businesses embed payment, deposit and lending solutions at scale, combining banking expertise with modern technology.
  

Unlocking embedded finance growth

From branded credit cards to the ever-present "buy now, pay later" buttons on retailer websites, financial services are increasingly embedded in every aspect of people’s lives, often in realms that have nothing explicitly to do with payments, lending or any other financial vertical.

Dubbed embedded finance, this transition toward financial offerings placed at the point of need has been steady and unrelenting, redefining how customers interact with financial services. Embedded finance revenues in the U.S. were about $116B in 2025 and forecasts are suggesting growth to nearly $140 billion by 2030, according to the latest United States Embedded Finance Market Databook 2025.

A range of factors is driving the rapid adoption of embedded finance, starting with the digitization of commerce and business management. Small- and medium-sized businesses (SMBs) in the U.S. are increasingly relying on digital solutions to manage their operations and accept payments, opening up a whole new universe of opportunities around payment methods point-of-sale loans and other tools.

The benefits of today’s embedded finance trends are clear. According to a 2025 Study by Green Dot and PYMNTS.com, 94% of companies plan to increase investment in embedded finance offerings and 93% report they are highly satisfied with their current embedded finance capabilities.

Building embedded finance faster

Unlocking the latent demand within embedded finance has only been possible through the rise of fintech infrastructure and deepened partnerships between fintechs and banks. Application programming interfaces (APIs), the protocols used to build application software, have been at the forefront of this movement, enabling fintech firms to plug in to banking data and even make transactions on their customers’ behalf.

As an example, Fifth Third Bank is developing APIs that allow companies to embed wire transfers, ACH and other payments directly into their platforms, providing direct access to the underlying rails without layers of expensive middleware. Through Fifth Third, software builders can develop innovative, customer-centric embedded products with the security, stability and scalability of one of the largest banks in the U.S.

Use case: property management platforms

To illustrate how embedded finance works and its benefits, one relevant use case is property management, an industry where the same API technology that embeds payments into online checkouts is being used to improve the payment experience for rental and leasing processes. Fifth Third Bank has helped transform this space, launching a bank-agnostic embedded payments solution, Newline™ by Fifth Third, that enables property managers to manage cash flows from their different properties on one intuitive digital platform.

Additionally, Fifth Third’s offering provides a single point of contact for overseeing additional payments and services, such as escrow accounts for deposits. This structure allows managers to reduce their payment processing costs, deepen data-driven insights and streamline relationships between owners and tenants.

The opportunity within property management and B2B payments is massive. According to PYMNTS Intelligence, global embedded B2B payments are projected to reach approximately $16 trillion in transaction volume by 2030 as businesses increasingly demand integrated payment solutions.

The future of embedded finance

Embedded finance has become a wide-reaching part of the fabric of consumer- and enterprise-facing products. And its explosive growth is expected to continue despite the current macroeconomic volatility.

Some incumbents have already emerged at the forefront of embedded finance, but there is plenty of space for new entrants to the industry, with a wealth of opportunities for fintechs and software-as-a-service providers that are willing to invest and strike partnerships with banks to claim a share of this rapidly expanding market.

While payments will continue to be the largest segment of embedded finance, analysts predict that long-term success largely lies with companies that leverage a full suite of financial products. Lending, insurance, tax and accounting are just a few of the adjacent value-added services that embedded finance is poised to disrupt.

Innovating embedded finance delivery

To help platforms, marketplaces and other businesses capture this growing opportunity, Newline offers embedded payments and deposit solutions that combine the capabilities and operating expertise of a leading regional bank with the engineering quality and innovation that clients demand in today’s technology environment. "Newline lets clients embed payment, deposit and lending solutions simply and at scale," said Tom Bianco, General Manager of Newline. "We’re helping clients build the best products and deliver an optimal user experience, whether that’s in an app to order food or a business operations platform that tracks inventory."

Successful distributors of embedded finance will be able to develop a flywheel effect of embedded products across financial verticals. For example, an e-commerce platform could utilize deposit and payment products to build customer relationships and obtain customer data. In turn, this information can be used to inform underwriting decisions for higher-margin lending products like credit cards and merchant financing.

Financial and non-financial brands that choose the right partners and infrastructure stacks in the next several years will ultimately emerge as the winners. Learn more about our embedded solution, Newline.