Embedded and invisible payments are becoming increasingly common, with numerous new applications anticipated this year. The global embedded payments market is projected to grow by 134% between 2024 and 2028, driven by account-to-account and wallet payments. A KPMG survey reveals that 58% of banks prioritize embedded finance, with 75% focusing on open banking technologies that support these payments. Major banks and fintech companies are intensifying their focus on embedded payments.
AI’s growth is expected to further boost embedded payments, enabling personal AI agents to handle transactions autonomously. Additionally, continued investments in infrastructure are essential to support these payments, making it easier for businesses to offer embedded finance with enhanced security and compliance solutions.
Exploring new sectors, such as healthcare and real estate, could enhance the value of embedded finance. U.S. Bank is investing in healthcare revenue cycle integrations, while fintech partnerships are facilitating instant wage access for employees. In the rental market, embedding payment capabilities could streamline transactions and improve user experiences.
Invisible payments, which require no active customer authorization, are also on the rise. Examples include Amazon Go’s Just Walk Out technology and Sam’s Club’s Scan & Go. This trend is expected to expand into healthcare, insurance, and B2B sectors, with car manufacturers integrating payment capabilities into vehicle systems.
The emergence of alternative payment rails, such as stablecoins, poses a potential challenge to banks. With growing interest in stablecoins, companies like Fiserv and retail giants such as Walmart and Amazon are exploring their own digital currencies.
As embedded and invisible payments continue to expand, banks must strive to remain relevant by offering rewards or incentives to maintain customer engagement, even when traditional payment methods are not actively used.
