Information and Analytics about Embedded Finance, BaaS and Open Banking

PYMNTS‘ latest research reveals that a staggering 80% of Millennials are utilizing mobile wallets to conveniently pay their bills. The shift from traditional paper-based billing to digital platforms has led to an increased adoption of mobile wallet bill pay among consumers. A comprehensive study conducted by PYMNTS found that 95% of mobile wallet users are well aware of the bill pay features offered by these platforms. Moreover, nearly a quarter of consumers now rely on mobile wallets to pay their bills on a weekly basis. This surge in popularity can be attributed to the speed and convenience associated with mobile wallet bill payments, resulting in a remarkable 22% rise compared to just six months ago. However, despite this substantial growth, only 60% of consumers opted for mobile wallet bill pay within the past year. PYMNTS researchers discovered that 71% of frequent mobile wallet users encountered at least one issue during bill payments, leading to concerns about the security of these platforms. In fact, over a third of consumers who were not interested in mobile wallet bill pay cited security concerns as their primary reason for hesitation. The PYMNTS research, conducted in collaboration with ACI Worldwide, delves into the experiences, preferences, frustrations, and future expectations of consumers regarding mobile wallet bill pay. The study surveyed 2,120 United States consumers between March 2 and 7, providing valuable insights into this emerging payment method. Key findings from the research indicate that an increasing number of consumers, particularly Millennials, are relying on mobile wallets for bill pay to efficiently manage their transactions and make prompt payments. Among more affluent consumers, bill payments via mobile wallets increased from 55% to 68% within the last year, signifying their status as early adopters. Millennials, known for their comfort with new technologies, have played a significant role in driving the mainstream acceptance of mobile wallet bill pay. The appeal of mobile wallet bill pay lies in its speed and convenience, particularly the ability to make instant payments when bills are due. The research indicates that 39% of consumers prioritize the ability to make immediate payments as a crucial factor in utilizing mobile wallets for bill pay. To address the concerns of security-conscious consumers, mobile wallet providers must offer robust bill pay security features. Approximately 42% of consumers uninterested in mobile wallet bill pay cited security apprehensions as their primary reason for skepticism. Providers have already made strides in improving processing speed, effectively halving prior complaints. By focusing on addressing security concerns, mobile wallet providers have the potential to tap into this consumer segment and further increase adoption.

In an era where mobile payments and contactless card transactions are gaining popularity, concerns about the security of payment technologies and the regulatory implications surrounding them are in the spotlight, states Alex Clere in his original article for FinTech Magazine.  According to research from UK Finance and YouGov, a significant number of adults in the UK and the US are embracing these new payment methods. As the adoption of mobile payments and contactless transactions increases, payment service providers and processors bear the responsibility of ensuring the security of these technologies. The question arises: what are the key security considerations, and what existing regulations govern them? Andrew Neeson, the Managing Editor and Research Director at regulatory intelligence firm VIXIO, emphasizes the trade-off between security, cost, and ease of use in the payment landscape. Striking the right balance among these factors is crucial. For instance, contactless payments have simplified transactions for consumers and merchants, but they come with reduced security measures such as the absence of PIN authentication. To mitigate risks, maximum spend limits are imposed. These limits can be adjusted as understanding of risk improves or for public policy reasons, as demonstrated by the temporary increase in contactless limits during the COVID-19 pandemic. Regulators play a vital role in managing this trade-off. The introduction of Secure Customer Authentication (SCA) stands out as a significant regulatory intervention in transactional security in the European Union and the UK. With a few exceptions, banks now require two forms of identification at checkout, ensuring a multi-factor authentication approach. However, the implementation of SCA faced criticism from payment firms and merchants who were concerned about potential negative effects on sales due to increased friction in the payment process. The European Banking Authority’s chief acknowledged the challenges faced in striking the right balance, stating that their goal was to make everyone equally dissatisfied with the rules and guidance they oversee. The boom in contactless payments during the pandemic has raised concerns about card security. UK Finance’s data reveals that almost 70% of debit card transactions in the UK are now contactless. Andrew Novoselsky, CPO at Sumsub, highlights the rise in contactless payment popularity but also points out vulnerabilities in the system. Hackers have exploited stolen credit card data to conduct fraudulent transactions through mobile payment platforms like Apple Pay, Samsung Pay, and Google Pay. Detecting such fraud can be challenging, making it easier for criminals to evade detection. To address this issue, financial institutions must invest in robust security measures, including transaction monitoring powered by artificial intelligence (AI) to proactively detect and prevent fraudulent transactions. Additionally, user education on safe mobile payment practices and the risks associated with storing sensitive data on mobile devices is crucial. Looking ahead, as new payment technologies emerge, there will be a need for enhanced regulatory safeguards to protect consumers from abuse and fraud. The future may bring innovations like in-car parking payments and smart refrigerator grocery orders. However, alongside these opportunities, regulatory challenges will arise. Andrew Neeson of VIXIO notes that although the underlying technology may change, the payments infrastructure should remain secure. Regulators often lag behind fast-changing technologies and consumer habits, intervening when potential risks and market maturity become apparent. For example, buy-now-pay-later services have operated outside existing consumer credit regulations in many countries, but as the market matures, several countries have started to bring them under regulatory oversight. The security and regulatory implications of payment technologies are crucial considerations as we increasingly rely on mobile payments and contactless transactions. Striking the right balance between security, cost, and user experience is a constant challenge for regulators and industry stakeholders alike. As new technologies emerge, regulators must adapt and enact appropriate safeguards to ensure consumer protection and mitigate risks in an ever-ever-changing landscape. The introduction of Secure Customer Authentication (SCA) and the need for transaction monitoring are examples of regulatory measures aimed at addressing security concerns. Financial institutions must invest in robust security measures and educate users about safe practices to combat fraud. Looking ahead, the future of payments regulation will likely involve the implementation of greater safeguards to protect consumers from abuse and fraud. As innovative technologies continue to reshape the payment landscape, regulators will face new challenges in ensuring the integrity and security of transactions. Striking a balance between innovation and regulation will be key to fostering a safe and efficient payment system.

The landscape of the financial industry is undergoing a significant transformation, leading to a shift in the relationship between traditional banks and FinTech companies, according to PYMNTS. Historically, banks viewed FinTechs as fierce competitors due to their technological expertise, agility, and ability to deliver superior customer experiences. However, the dynamics are changing as both sides adapt to economic pressures, regulatory requirements, and evolving customer preferences, resulting in a growing emphasis on collaboration. Major financial institutions, including JPMorgan and American Express, have recognized the potential of FinTechs and have pursued acquisitions. In fact, there has been a substantial increase in banks’ interest in acquiring FinTech companies. Moreover, partnerships between banks and FinTechs have become more prevalent, with 89% of banks considering such collaborations at least somewhat important, compared to 49% in 2019. Both parties have realized that a collaborative approach can be mutually beneficial in the face of a shifting industry landscape. The «FinTech Tracker» delves into how FinTechs and banks can derive advantages from working together and explores why collaboration has gained favor recently. Grasshopper Bank, as part of its efforts to foster closer ties with FinTechs, has forged partnerships in 2022 with Treasury Prime, FIS, Visa, Autobooks, and others. These collaborations aim to modernize and enhance Grasshopper Bank’s existing capabilities. The results have been promising, with the bank reporting a remarkable 262% year-over-year increase in loans. Lloyds Banking Group is also seeking to deepen its relationship with FinTechs. The bank recently introduced a 12-week program in which selected FinTechs will have the opportunity to compete for a chance to partner with the bank and become eligible for Series B funding. This initiative builds upon a similar program conducted last year, which culminated in a £4 million investment in FinTech company Caura. Regulators have intensified their scrutiny of financial institutions, including banks and FinTechs, in response to a surge in fraudulent activities in 2022. Instances of external fraud and high-profile internal fraud cases, such as the FTX scandal that reverberated throughout the crypto industry, have prompted regulators to heighten their vigilance. PYMNTS interviewed Kiran Hebbar, CFO at Alloy, an identity decisioning platform, to gain insights into the growing significance of compliance in bank-FinTech relationships. The ongoing overtures of collaboration between banks and FinTechs come at a crucial time, as a closer relationship may soon become essential. Last October, the Consumer Financial Protection Bureau (CFPB) introduced an open banking framework that is poised to have profound implications for both FinTechs and banks. The framework, which is expected to take effect possibly in 2024, mandates that banks provide qualified third parties access to consumer financial data, including transaction and deposit details, as well as personal information, through application programming interfaces (APIs). While the specifics of the framework may undergo revisions, compliance will depend on the interdependence of banks and FinTechs. Banks, in particular, have faced challenges related to APIs, with 81% of surveyed banks citing a lack of API experience as a hurdle when collaborating with FinTechs, according to a study. The changing financial landscape and forthcoming open banking regulations in the US are propelling banks and FinTechs towards increased collaboration. The evolving dynamics and mutual benefits of working together are encouraging financial institutions to seek out partnerships and acquisitions, ultimately driving innovation and enhancing customer experiences in the industry.

The Federal Reserve’s long-awaited digital payments system, known as FedNow, is set to debut in July, aiming to revolutionize the speed and accessibility of money transfers, according to CNBC. Richmond Fed President Tom Barkin, the program’s executive sponsor, described FedNow as «a leading-edge payments system that is resilient, adaptive, and accessible.» FedNow is designed to facilitate various financial activities, including bill payments, money transfers such as paychecks, government disbursements, and other consumer transactions, with the goal of enhancing efficiency and reducing costs. To ensure smooth implementation, participants will undergo a training and certification process in early April, according to an announcement by the Federal Reserve. Encouraging financial institutions and industry partners to actively prepare for joining the FedNow Service, Ken Montgomery, the program executive and first vice president at the Boston Fed, which played a pivotal role in spearheading the project under former Boston Fed President Eric Rosengren, stated, «With the launch drawing near, we urge financial institutions and their industry partners to move full steam ahead with preparations to join the FedNow Service.» One significant advantage of the FedNow system is its seven-day, 24-hour accessibility for participating institutions, in contrast to the current system that closes on weekends. Proponents of the program assert that it will expedite the delivery of funds to individuals, citing examples such as government payments during the early stages of the Covid pandemic, which would have been instantly credited to accounts instead of the lengthy delay experienced by many recipients. Interestingly, some Federal Reserve officials speculate that the successful implementation of FedNow could render the necessity for a central bank digital currency obsolete. By offering efficient, real-time payment capabilities, FedNow could potentially address the demands that a central bank digital currency aims to fulfill.

In an effort to cater to the increasing digitization of everyday essentials, Google Wallet has expanded its features to allow users to store ID cards, health insurance cards, and various passes in a single digital wallet, as mentioned by John Smith in his article for PaymentsJournal. The updated capabilities aim to provide consumers with a more organized way of managing their daily necessities, eliminating the need to carry around physical receipts and cards. Dong Min Kim, the director of product management at Google Wallet, emphasized the growing comfort and reliance on mobile devices for a wide range of tasks. «A lot of the things that you used to carry around with you are becoming digitized, and people are getting a lot more comfortable about what their mobile device can do,» he explained. The new features introduced by Google Wallet not only focus on payment transactions but also aim to support non-payment use cases that are emerging. Kim drew a comparison with the transition from carrying a separate digital camera to now relying solely on smartphones for photography. Similarly, the goal is to incorporate essential items like wallets and keys into the mobile device while ensuring user safety. Users can now save their state ID card, health insurance cards, and even photograph other passes, such as gym memberships or company IDs, and upload them to their Google Wallet. This consolidation of personal information simplifies access and provides a secure platform for storing sensitive data. In an interview with PaymentsJournal, Kim shed light on the driving factors behind these new features. The COVID-19 pandemic accelerated the shift towards remote and digital interactions, prompting people to embrace digital solutions and feel more at ease with them. Google Wallet also conducted extensive studies to identify user needs in the digital wallet space. The categories introduced in response to these findings include loyalty tickets, loyalty cards, offers, gift cards, transit cards, event tickets, and payments. Kim expressed a commitment to partnering with more entities to further expand these offerings. Kim acknowledged that while the recent enhancements are focused on non-payment features, they can also drive payment adoption among users who may have initially been hesitant. By providing users with more control over their digital wallet contents, Google Wallet aims to demonstrate the value of convenience and security, offering an all-in-one solution for their everyday needs. Furthermore, Google Wallet envisions integrating these experiences into the broader Google ecosystem, improving the overall user experience. For instance, within Google Maps, users in certain cities can directly top up or add balance to their transit card, leveraging the local transit system. Addressing concerns about security, Kim assured that Google Wallet is prioritizing this aspect. Certain passes, such as boarding passes, can be accessed without frequent authentication. Additionally, Google Wallet has introduced Private Passes, enabling users to maintain privacy by default and choose to make information public selectively. With regards to payment security, stringent measures are in place, such as tokenization, to protect sensitive data and ensure user privacy. Looking ahead, Kim identified governments as increasingly involved in the digital wallet space, citing examples like India’s Unified Payments Interface (UPI) that rapidly transformed the country’s payment landscape. Identity-related developments are also on the horizon, and Google Wallet aims to facilitate these experiences. The ultimate goal is for users to view their digital wallet as a reliable and comprehensive solution for their everyday needs. As Google Wallet continues to evolve, the focus remains on providing users with a secure, convenient, and unified platform for managing their digital essentials.

In the world of fintech and financial services, customer data is a valuable asset that allows for personalized products and services, as stated in the article written by Alex Clere for Fintech Magazine. However, there is a delicate balance to be struck between collecting sufficient data and overwhelming customers, risking disengagement. According to research from software company Fenergo, a significant number of financial institutions lose customers due to a slow or inefficient onboarding process, costing the industry billions of dollars annually. Alistair Dent, Chief Strategy Officer for data consultancy Profusion, explains that fintechs have shifted towards a simpler data collection approach. By offering a streamlined signup process, fintechs can attract more customers initially, even though it limits personalization. However, Dent suggests that the best approach is to provide customers with a choice. Making data collection optional while highlighting how each additional piece of information enhances their experience can encourage users to share more data. While the quantity of data collected is important, the quality of data holds equal significance. Louise Potts, Head of Banking Customer Advisory Practice at SAS UK&I, emphasizes that organizations can offer better services when they possess high-quality data. In regions like Latin America where credit information may be limited, alternative data sets, such as utility bill payments or phone contracts, are being used to assess creditworthiness. Jay Reilly, SVP EMEA at Precisely, suggests that the challenge for fintechs lies in ensuring the integrity of the data rather than its quantity. Fintechs must connect customer data across the organization and understand the context in which customers engage to gain insights into their lifecycles. Implementing strong data governance practices and a data quality management framework can address these challenges. Compared to traditional financial institutions burdened by legacy systems, fintechs have an advantage in terms of their technology infrastructure. However, fintechs face the complexity of integrating data from various sources to provide comprehensive services. Data strategies that prioritize a customer-centric approach and enable easy access to complete customer overviews can foster improved customer service. To enhance their data strategies, fintechs should focus on leveraging data to optimize and scale their operations. Investing in data analytics and insights can provide a competitive edge in a rapidly evolving and highly competitive sector. Effective data management, along with clear business goals, is vital to fueling business intelligence and making informed decisions. Fintechs must strike the right balance in customer data collection, ensuring they collect enough information to personalize services while not overwhelming customers during the onboarding process. By prioritizing data quality, implementing strong governance practices, and adopting a customer-centric approach, fintechs can leverage data to enhance the customer experience and gain a competitive advantage.

In an effort to streamline their services and provide more comprehensive solutions to clients, JP Morgan has introduced the Payments Partner Network, a groundbreaking B2B digital marketplace, according to Finextra. Developed in collaboration with Salesforce, this innovative platform allows JP Morgan’s merchants and corporate treasury clients to access a wide range of third-party integrations that cater to their end-to-end payments and working capital requirements. By creating a searchable «one-stop shop,» the Payments Partner Network offers clients the ability to explore, search, and gain insights about various relevant third-party partners that seamlessly integrate with JP Morgan’s Payments platform. This ecosystem encompasses a diverse array of technology, software, and hardware companies within the payments and treasury services value chain. Notable integrations include treasury management systems, enterprise resource planning software providers, point-of-sale hardware, payment gateways, and accounts payable automation technology. Currently in its beta phase, the network features a subset of payments product integrations, with plans to expand and add more offerings over time. This expansion will further solidify JP Morgan’s standing as a leading player within the global payments landscape. Jason Tiede, the global head of corporate development and partnerships at JP Morgan, expressed enthusiasm about the network’s potential, stating, «JP Morgan has one of the largest payments ecosystems in the world, with hundreds of third-party integrations spanning virtually every industry and use case. The Partner Network will make it easier for clients to efficiently discover and assess the best product partners to suit their needs.» The introduction of the Payments Partner Network signifies JP Morgan’s commitment to delivering exceptional value and service to their clients. By leveraging the power of Salesforce and collaborating with a wide range of third-party partners, the bank is positioned to enhance its position as a leading provider of comprehensive payment and working capital solutions. As the network expands, clients can expect even more tailored options to optimize their operations and drive efficiency.

In today’s rapidly evolving digital economy, companies are continually seeking innovative ways to meet the changing needs of consumers and businesses in the financial services landscape, writes Santiago Vinoth Jeyaseelan for Forbes.  One disruptive trend that has gained significant momentum is embedded finance, which enables financial and non-financial companies to offer financial products and services through technology, unlocking new revenue streams and transforming the paradigm of financial services. Embedded finance offers vast possibilities, ranging from embedded payments in e-commerce platforms to embedded fraction-share trading in fintech apps. According to Bain & Company, financial services embedded into e-commerce and other software platforms are expected to exceed $7 trillion by 2026. This surge in demand is driven by the promise of improved customer experiences and enhanced financial access through the «better together» proposition. The integration of financial capabilities into existing applications through technology allows businesses to provide users with a more convenient and seamless experience. This trend is fueled by the growing demand for personalized and integrated financial solutions, as consumers and businesses seek efficient ways to manage and grow their finances. Apple’s recent introduction of a high-yield savings account is a prime example of the rapid rise of embedded finance. At the core of embedded finance lies API-based technology, which forms the foundation for integrating financial products and services. These platforms, designed to be API-first and cloud-native, offer a wide range of capabilities that empower businesses to build and launch embedded finance solutions with speed and agility. Numerous real-world examples demonstrate the disruptive potential of embedded finance and the transformative impact of API-based platforms. One notable case is Square, a mobile payment and financial services company that provides embedded financial services through its APIs. These services include payment processing, point-of-sale solutions, and small business loans, enabling millions of small businesses to expand their customer base, increase sales, and drive revenue growth. Looking ahead, the next wave of embedded finance is likely to focus on integrating niche financial products. Annuities, for instance, are insurance contracts issued and distributed by financial institutions to provide a fixed income stream in the future. These products offer a balanced approach to managing investment risks while safeguarding savings from market fluctuations and providing tax-deferred growth. Integrating niche financial products like annuities requires careful evaluation of API platform partners to ensure clear roles and responsibilities and expedite the product launch process. To successfully implement embedded finance, companies must conduct a thorough technical evaluation of API platforms to ensure adherence to industry best practices for technology architecture, security, and compliance. This evaluation encompasses factors such as tenancy architectures, data segregation methods, authentication, authorization, and encryption mechanisms to protect data and prevent unauthorized access. Companies seeking partners for embedded finance should prioritize simplicity and scalability in API design. RESTful design principles, standard HTTP methods, clear documentation, and developer-friendly examples facilitate seamless integration. Scalability and performance considerations, including request volume, latency, uptime, and optimization techniques, also play a crucial role in enabling effective decision-making. Despite the significant opportunities presented by an API-first approach in embedding financial products, companies must be prepared to address certain challenges. Complying with regulations is paramount, particularly for niche financial products that are heavily regulated. Data security and privacy concerns should also be addressed to protect against potential vulnerabilities and maintain customer trust. Additionally, achieving abstraction and standardization across different investment products’ data structures is vital for seamless integration across various platforms. Embedded finance, powered by API-based platforms, is reshaping the financial services landscape, offering consumer finance companies the opportunity to deliver seamless, personalized, and convenient financial services. Embracing API-based platforms can be a strategic move for fintechs and other businesses to stay ahead of the competition and meet the evolving needs of consumers and businesses. By leveraging an API-first approach and carefully understanding the challenges involved, businesses can build compelling financial product offerings that drive revenue growth, enhance customer engagement, and create differentiation in the market. However, it’s important to acknowledge that there are hurdles to overcome. One such challenge is the need to comply with regulations, particularly for niche financial products that have specific design requirements and regulatory implications. Additionally, data security and privacy should be a top priority, ensuring that the APIs being integrated are secure and protect sensitive data. Companies must mitigate the risk of data commingling on the provider side, which could damage their brand reputation and erode customer trust. Another obstacle lies in achieving abstraction and standardization across different investment products’ data structures. This harmonization is crucial to enable seamless integration across multiple platforms. It’s worth noting that integrating non-standard protocols and APIs can be an expensive endeavor, both in terms of initial development and ongoing maintenance. Nevertheless, the potential benefits of embedded finance and API-based platforms are significant. They offer opportunities for financial institutions to expand their product offerings, reach new customer segments, and provide tailored solutions. The ability to deliver personalized financial experiences through seamless integration has the potential to revolutionize the industry. In this ever-evolving landscape, embracing the API-first approach and cultivating a deep understanding of the challenges at hand can empower businesses to thrive. By leveraging the power of embedded finance, companies can position themselves at the forefront of innovation, drive customer satisfaction, and adapt to the changing needs of the market. As the financial services industry continues to evolve, those who embrace embedded finance are well-positioned to shape the future of finance and unlock new possibilities for both businesses and consumers.

Generative artificial intelligence (AI) is revolutionizing the world of embedded finance by accelerating advancements and delivering substantial benefits, according to the PYMNTS. With the increasing digitization of daily life, AI is becoming an essential optimization driver for future-ready solutions, especially in the realm of payments. The capabilities of AI offer the potential to redefine and enhance financial interactions by providing next-generation personalization for end-users and enabling identity verification and compliance automation for service providers. As eCommerce, digital wallets, and embedded payments continue to grow exponentially, businesses face the challenge of safeguarding against modern fraud while simultaneously acquiring and retaining customers in an ever-evolving landscape where incumbents and innovators pose competitive threats. While the commercialization of AI has generated excitement, sustainable long-term applications that demonstrate its utility across industries are crucial for overcoming the current hype surrounding the technology. Fortunately, generative AI is emerging as a changer at a crucial juncture in the offline-to-online journey. By integrating AI technologies into their solutions, companies that focus on developing digital engagement channels, particularly in the payments and finance sector, can harness winning efficiencies that drive differentiation and accelerate sustainable growth. PYMNTS research on «How The World Does Digital» revealed a 29% year-over-year growth in the use of digital wallets offered by Big Tech, such as Apple Pay, Google Pay, and Samsung Pay. Given the significant reliance on software components in numerous consumer touchpoints, generative AI is poised to transform how businesses engage with customers and compete. Historical frictions in payment journeys and traditional financial services have created a valuable opportunity for generative AI to add value. Tom Randklev, global head of product at payment orchestration platform Cellpoint Digital, noted that embedded payments have already greatly enhanced consumer convenience. With generative AI, this smooth experience is expected to continue accelerating, reducing the journey from product selection to payment to just one or two clicks. Compared to earlier generations of predictive AI, the latest generation of generative AI excels in real-time, non-closed loop, iterative tasks. It is already streamlining complex processes and reshaping end-user interactions with digital tools, setting new expectations for efficiency and simplicity. Areas where generative AI is projected to have an immediate and significant impact include identity verification and nontraditional credit scoring, with potential applications for automating and optimizing these processes. Generative AI shines in complex processes with large data volumes, particularly in marketplaces where speed and accuracy are essential. Amias Gerety, partner at QED Investors, emphasized its application in fraud, risk management, and underwriting as industries where practitioners can leverage AI for rapid, accurate results. Furthermore, generative AI can drive revenue growth through enhanced personalization of services. As transactions increasingly shift to digital platforms, AI becomes the best bet for businesses. By creating synthetic data sets, generative AI can retrain older models with new data, opening up novel possibilities for contextual commerce and payments. Andrew Gleiser, Chief Revenue Officer of Aeropay, envisions integrating generative AI into merchant payment portals to provide customers with compliant information about their best clients, including metrics like average order value, overall volume, and purchase cadence. This deeper understanding enables businesses to make informed decisions that help retain and acquire customers. Generative AI is revolutionizing embedded finance by fueling growth and efficiency. With its potential to optimize processes, enhance personalization, and generate new data trajectories, AI is shaping the future of payments and financial services.

Mastercard and Fabrick have announced a strategic partnership aimed at accelerating the adoption of Embedded Finance solutions across Europe. Through this collaboration, the two companies will develop innovative financial services that can be seamlessly integrated into businesses, financial institutions, and fintech companies. Embedded Finance is a concept that allows companies from various sectors to incorporate financial services directly into their products through the use of APIs. This integration enables businesses to offer payment, banking, and insurance services without the need to build their own financial infrastructure. Fabrick, a pioneer in the Open Finance sector, provides an Open Finance platform that facilitates embedded payment solutions on a global scale. This platform empowers companies and banks to enhance their customer relationships by offering comprehensive and value-added digital payment and embedded finance solutions. As part of the partnership, Mastercard has made a minority investment in Fabrick. This investment signifies the commitment of both companies to driving innovation and expanding their offerings in the digital financial services space. Currently, the Fabrick platform connects over 400 counterparties, generating an impressive 330 million API calls per month. Paolo Zaccardi, CEO and Co-founder of Fabrick, expressed his excitement about the collaboration, stating, «Being able to count on the collaboration of a partner of the caliber of Mastercard with a new level of commitment will allow us to strengthen our international presence and open a new phase of growth and evolution.» Zaccardi believes that this partnership will enable Fabrick to establish itself as a benchmark in Open and Embedded Finance across other European countries. Michele Centemero, Country Manager Italy at Mastercard, also emphasized the significance of the partnership. He stated, «We are glad to reinforce our collaboration with Fabrick and value their great vision and model to face, govern, and design the evolution of embedded finance, which we think will be a big driver for the development of digitization in the next years.» Centemero believes that the collaboration will support the collective goal of offering digital payment solutions to businesses and delivering a seamless experience for customers. This strategic partnership between Mastercard and Fabrick represents a major step forward in advancing the adoption of Embedded Finance solutions. By leveraging their respective strengths and expertise, the companies aim to revolutionize the digital financial services landscape and create new opportunities for businesses and customers alike.