Growth, Innovation, and Opportunity in 2025: The Embedded Finance Revolution
2025 is shaping up to be a landmark year for the financial technology (fintech) sector, with embedded finance emerging as one of the driving forces behind its rapid transformation. As companies increasingly look to digitalise their offerings and improve customer experiences, the embedded finance market is expanding beyond its initial confines, opening up exciting opportunities for both startups and established enterprises alike. Toqio is at the forefront of this movement, leveraging cutting-edge technology to help businesses of all sizes integrate financial services into their platforms, while enabling innovation, growth, and profitability.
The Explosive Growth of Embedded Finance
Embedded finance has already begun to revolutionise the way businesses offer financial services. What was once a niche offering is now becoming a mainstream solution, with financial products being embedded directly into non-financial platforms. Whether it’s embedded lending, payments, insurance, or banking, more and more businesses are recognising the value of offering financial services as an extension of their core product. According to recent market reports, the global embedded finance market is set to exceed USD 7 trillion by 2030, with 2025 marking a critical year of rapid growth.
Companies like Mercado Libre, Toast, and Shopify have already successfully integrated embedded finance into their core offerings, generating billions in new revenue streams and driving core growth.
For Toast, in the fourth quarter of 2024, revenue from financial technology solutions reached USD 1.067 billion, far surpassing the USD 189 million from its subscription services. Shopify reported USD 1.1 billion in embedded finance revenue in 2023, a threefold increase, and a 31% year-over-year growth, outpacing its software-only revenue growth of 11%.
In the FMCG sector, Mercado Pago, the fintech arm of Mercado Libre, has integrated embedded finance into their platform, generating USD 2.2 billion in new revenue, accounting for 41.5% of Mercado Libre’s total revenue. By offering payment solutions and lending products to SMEs, Mercado Pago has not only boosted merchant retention but also unlocked new revenue streams.
Liberis has embedded finance solutions to offer tailored financing to small businesses, resulting in a 50% reduction in merchant churn and a 30% increase in payment processing growth post-loan. By integrating financial services directly into their network, Liberis has fostered stronger customer relationships and created more financially resilient merchants.
Innovation as the Heartbeat of Growth
Embedded finance is not just about connecting financial services to other products; it’s about how corporates can leverage embedded finance to build vertical solutions that solve their business challenges. By tapping into their industry expertise, brand power, and large distribution channels, companies can create tailored financial products that meet the specific needs of their customers. This enables corporates to offer integrated solutions that drive value for their merchants, distributors, and retail partners. Whether in retail, food and beverage, or e-commerce, embedded finance allows companies to unlock new revenue streams and strengthen their market position by providing personalised, industry-specific financial services.
Toqio, in particular, is harnessing these innovations to offer businesses a comprehensive, flexible and fully configurable platform that enables them to embed financial services quickly and efficiently. With Toqio, businesses can create their own branded banking products such as payments and lending without the need for complex integrations or regulatory hurdles. By removing the friction traditionally associated with launching financial products, Toqio is empowering companies to innovate in ways that were previously unimaginable.
For instance, think about the potential for financial inclusion. With embedded finance solutions like Toqio’s, entrepreneurs in underserved or unbanked regions can obtain the tools they need to build successful small businesses more easily. With just a smartphone, they can access services like micro-loans, digital wallets, and even insurance, all integrated into the platforms they use every day. By fostering growth in these areas, large companies wind up helping small business owners improve their local economies, and that’s good for everyone in their respective communities.
Moreover, innovation within the embedded finance space is fostering a more transparent, efficient, and accessible financial ecosystem. For businesses, this means reduced operational costs, increased efficiency, and faster time-to-market for new products. For consumers, it translates into more control over their financial decisions, as they gain access to a wide variety of services in one integrated experience.
Opportunity on the Horizon
The opportunities in embedded finance are vast, and first movers will be the key winners. As regulatory clarity continues to improve in key markets, more companies will be able to adopt embedded finance solutions. The convergence of AI, machine learning, and blockchain is enhancing the security and scalability of embedded finance solutions, offering even more opportunities for innovation. Businesses that embrace these changes early will have a significant competitive advantage as the sector continues to grow.
For Toqio, this represents a huge opportunity to expand its reach and influence within the embedded finance market. By continuously evolving its platform and staying ahead of the technological curve, Toqio is positioning itself as a leader in helping businesses create next-generation financial experiences. Whether it’s helping e-commerce platforms offer instant payments, assisting retail chains in launching their own digital wallets, or enabling banks to rapidly deploy whitelabeled solutions to their corporate clients, Toqio’s focus on innovation is opening up exciting opportunities for businesses across industries.
The Future is Now: Shaping 2025 and Beyond
As we journey on in 2025, the embedded finance landscape is brimming with potential. The next few years will bring growth, innovation, and new opportunities. Companies that embrace embedded finance now will tap into new revenue streams, drive customer loyalty, and transform how they engage with audiences.
For Toqio, the future is about enabling businesses to integrate financial services and use innovation to unlock value. As the embedded finance sector grows, we’re committed to helping businesses navigate this landscape and position themselves for success in 2025 and beyond.
