Information and Analytics about Embedded Finance, BaaS and Open Banking
Credit unions are being encouraged to focus on the rapidly growing in-car payment market, as recent research highlights this service’s increasing relevance. As vehicles become more connected, the ability to conduct transactions from inside the car is transforming the driving experience, with experts predicting substantial growth in this sector over the next decade, as stated in CUtoday.info News. According to a market study by GlobalData, the global automotive payment market is expected to reach $580 billion by 2030, driven by the proliferation of connected vehicles, set to increase from 430 million to 895 million during the same period. The study reveals that payments for parking and EV (electric vehicle) charging will account for 70% of the market, followed by e-commerce purchases such as food, beverages, and entertainment at 25%, with the remaining 5%involving other functionalities. “This technology aims to redefine the driving experience by enabling a wide range of services, including pay-as-you-drive insurance, remote vehicle monitoring, real-time information for drivers, and automatic emergency calls. One of the biggest opportunities and benefits identified is the ability to make payments directly from the car without the need for physical cards or mobile apps, including for fuel, electric vehicle (EV) charging, and parking,” noted GlobalData. The report, developed by STL Partners in collaboration with Pairpoint, a provider of solutions for the Economy of Things, underscores how embedded payment systems are changing the way consumers engage with modern vehicles. Jorge Bento, CEO of Pairpoint, explained the significance of native payment functionality in connected vehicles. “Advanced connectivity is a catalyst for new ways of interacting with modern vehicles,” Bento stated. “Adding native payment functionality will allow for more secure, real-time, automatic usage of day-to-day services such as parking, EV charging, refueling, and more.” With this level of integration, the driving experience is being reshaped. Consumers can now pay for services seamlessly from their cars, eliminating the need to fumble with physical cards or mobile apps. Bento emphasized that beyond convenience, these systems also enhance security by facilitating encrypted, real-time payments. The shift toward in-car payments reflects the broader movement within the Economy of Things, where connected devices actively communicate with each other and with service providers. This evolution creates new possibilities for financial institutions, including credit unions, to explore partnerships and technology solutions that cater to customers’ evolving needs. Credit unions, traditionally focused on providing competitive and customer-centric services, may find in-car payments a valuable addition to their portfolios. As connected vehicles become a standard feature and consumer demand for frictionless transactions increases, credit unions have the opportunity to position themselves at the forefront of this technological change. The research demonstrates how in-car payment systems are no longer limited to early adopters but are quickly becoming mainstream. This trend presents not only new revenue streams but also the chance to enhance customer engagement through personalized, integrated payment solutions.
Mastercard is extending its Product Express platform to new global markets after a successful launch in Latin America earlier this year, according to Finextra. This expansion aims to empower fintechs by significantly reducing the time required to roll out card programs—potentially launching them within just 15 days. Product Express offers fintechs a streamlined approach by enabling them to select the most suitable products, collaborate with pre-approved partners, and monitor the progress of each step in the process. In the first year, Mastercard onboarded several key partners onto the platform, including BIN Sponsors, processors, and program managers such as Blusalt, Episode Six, FOO, Giftstarr, i2c, Nymcard, Optimus, Paymentology, and Wema Bank. The platform, initially introduced in Latin America, is now expanding to Africa, the Middle East, Europe, North America, and additional Latin American regions. Jennifer Premisler, SVP of fintech solutions at Mastercard, highlighted the value of the platform’s expansion: “We are thrilled to be expanding the reach of the Product Express to more partners, more regions and more solutions. By creating a better experience for all parties, we foster innovation and reduce time to market.”
Real-time payments could boost global GDP by $285.8 billion and open 167 million new bank accounts by 2028, according to a report by paytech firm ACI Worldwide and the Centre for Economics and Business Research (CEBR), as highlighted in The Fintech Times. The report highlights a strong connection between real-time payments and financial inclusion. By enabling instant money transfers and lowering transaction costs, these payments not only improve market efficiencies but also formalize cash-based transactions, which expands economic opportunities. Thomas Warsop, President and CEO of ACI Worldwide, emphasized: «Real-time payments act as a powerful catalyst for economic growth and societal transformation in modern, digital economies. This research demonstrates how payments modernisation benefits governments, banks, and citizens alike.» In 2023, real-time payments across 40 countries contributed $164 billion to global GDP—equivalent to the labor output of 12 million workers. This growth is expected to rise even further by 2028, especially in regions such as Europe, where the EU’s Instant Payments Regulation aims to accelerate adoption and boost financial inclusion. Some countries are already showing significant progress. Turkey is forecast to generate $5.1 billion in additional GDP by 2028, followed by the UK with $4 billion. In the Middle East, Saudi Arabia’s GDP is expected to rise by $1.1 billion, and Bahrain’s by $677.6 million, reflecting the region’s rapid shift towards real-time payments. According to Owen Good, head of economic advisory at CEBR: «For the first time, we identify a positive link between instant payments and financial inclusion. Faster payments reduce costs and enhance user experience, helping a broader population access financial services.» The report also finds that younger adults, women, and low-income groups are among the biggest beneficiaries of financial inclusion through real-time payments. By 2028, 167 million people previously excluded from formal banking could gain access to financial services, underscoring the transformative potential of real-time payment systems.
In today’s fast-evolving investment landscape, artificial intelligence (AI) is transforming how investors and portfolio managers manage and leverage data, as outlined in Fintech Global. New developments are reshaping data acquisition, processing, and access, giving financial institutions a competitive edge. In a recent conversation with FinTech Global, Jamil Jiva, Executive Vice President at Linedata, emphasized the growing importance of AI in data management. Improved Data Acquisition:AI facilitates gathering data from multiple sources and merging them seamlessly. Jiva noted, «When you mix that with all the work that was done the past few years on creating open ecosystem through open APIs, it has completely changed the amount of data institutions can take in and therefore the quality of data.» Faster Data Transformation:Processing data from various sources becomes faster with AI, surpassing traditional manual workflows. According to Jiva, this allows humans to focus on more value-added tasks, while AI handles the heavy lifting. Timely Access to Relevant Data:AI also addresses the challenge of identifying the right data promptly. Jiva explained, «As you’re getting a lot of data, an issue that starts to rise pretty quickly is how do you get to the right data at the right time.» AI enhances near real-time decision-making, enabling portfolio managers to act swiftly in a competitive market. Jiva concluded, «AI has really helped to manage an incredible amount of data almost in real-time and therefore help portfolio managers and investors make decisions quickly and reposition themselves.» By streamlining data management, AI adds significant value for investors and their customers, providing faster insights and more precise strategies.
Artificial Intelligence (AI) and Generative AI (Gen AI) are driving significant transformations across industries, reshaping sectors such as technology, healthcare, energy, and finance, as outlined in FinTech Magazine. A recent report by the Royal Bank of Canada (RBC) emphasizes that while the short-term benefits of AI are often overestimated, its long-term potential is profound. The report, led by Frédérique Carrier, Head of Investment Strategy at RBC Wealth Management for the British Isles and Asia, explores both the opportunities and challenges AI presents for businesses worldwide. Industries are increasingly recognizing the importance of adopting AI to maintain a competitive edge. From voice assistants simplifying daily interactions to predictive algorithms optimizing business strategies, AI continues to redefine how technology integrates into modern life. However, Carrier points out that beyond immediate benefits, businesses must also prepare for AI’s long-term impact. She describes the technology as a «disruptive megatrend» poised to reshape many industries. “History shows that investors tend to overestimate the short-term benefits of promising new technologies but underestimate their long-term impacts. We believe this is true of AI today,” Carrier notes. Generative AI, which excels in creating new content by analyzing extensive datasets, is further accelerating AI’s transformative power. Although the technology offers immense potential, challenges like ensuring data accuracy, avoiding errors known as «hallucinations,» and addressing user privacy concerns remain significant hurdles. Additionally, the high costs of implementing Gen AI raise questions about its economic feasibility, especially in sectors that rely heavily on entry-level positions. The RBC report highlights key industries where Gen AI is having a transformative impact: Technology:Software companies are pioneering the adoption of Gen AI, with tech giants like Microsoft incorporating the technology into popular platforms. GitHub Copilot, for instance, uses Gen AI to assist developers, potentially doubling their coding speed, according to McKinsey & Company. However, human oversight remains essential to maintain quality assurance. Cybersecurity Risks:As Gen AI expands, it also introduces new vulnerabilities. The U.S. National Cybersecurity Center warns that AI advancements are likely to escalate the frequency and severity of cyberattacks in the coming years. The influence of AI extends far beyond the tech sector. RBC identifies several other industries that are benefiting from AI-driven innovations: Energy and Infrastructure:The growing demand for AI services increases the need for data centers, boosting energy consumption, particularly for natural gas. This trend also drives the adoption of innovative cooling solutions, such as liquid cooling, which is growing three times faster than traditional air-cooling methods. Healthcare Innovations:Gen AI is revolutionizing healthcare by improving patient care, from initial diagnosis to long-term engagement. Medical imaging has become more efficient with AI-powered tools that quickly detect anomalies, enhancing diagnostic accuracy. Finance and Wealth Management:In finance, AI is streamlining operations by automating communication, documentation, and client management tasks. This enables financial advisors to enhance productivity and focus more on strategic decision-making. As AI continues to reshape industries, it presents both opportunities and challenges for businesses and governments. Frédérique Carrier concludes that staying informed about technological developments is essential for investors and organizations looking to capitalize on AI’s potential. “As Gen AI is rolled out across a wide range of industries, it will be important for investors to keep abreast of new developments in order to understand how this potentially transformational technology is driving changes in the investment landscape,” Carrier explains. The RBC report underscores the importance of adopting a balanced perspective toward AI and Gen AI, recognizing both the immediate benefits and the long-term challenges. It urges businesses to embrace this transformative technology while addressing the economic, privacy, and cybersecurity concerns that accompany its rapid growth.
As electric vehicle (EV) adoption accelerates worldwide, new challenges are surfacing, and one of the most significant obstacles is «payment anxiety.» Much like range anxiety—the fear of running out of charge—payment anxiety is driven by complicated and fragmented payment systems at EV charging stations, which threaten to hinder the smooth adoption of electric vehicles, as highlighted in The Fintech Times. «We believe the future of payments lies in simplicity and flexibility, especially in the mobility space,» says Sarah Koch, Director of Marketing and Communications at Aevi. She stresses the importance of optimizing payment systems to support the growing EV market, ensuring payments are as seamless as refueling a gas-powered vehicle. While the global EV market is set to grow steadily at 6.63% year-on-year and projected to hit $1.084 billion in revenue in the U.S. by 2029, consumers remain concerned. Drivers encounter inconsistent pricing, a requirement for multiple apps, and reliance on specific payment methods at various stations, creating frustration. Countries like Norway lead the charge with well-organized charging networks and seamless payments, but other regions lag. Without standardization in payment systems, potential EV adopters may hesitate to switch, fearing unpredictable costs and complex transactions. “Clear, dynamic pricing based on real-time energy usage and demand will be essential to avoid unpredictable expenses,” Koch adds. A frictionless payment experience, similar to the e-commerce revolution, could transform the EV market, driving widespread adoption and making electric vehicles the norm, not the exception. With a focus on transparent, flexible payment methods—whether contactless cards, mobile wallets, or new pricing models—industry players have an opportunity to eliminate payment anxiety. Addressing these issues will pave the way for sustainable growth in the EV space and align with global efforts to encourage green mobility.
Artificial intelligence (AI) is reshaping the financial services landscape, offering new ways for institutions to understand and meet the needs of their clients, as stated in Fintech Global News. One of the key changes is the enhanced ability to provide personalization, helping organizations connect with customers on a deeper level. A significant advantage of modern AI solutions is their ability to process not only structured data but also unstructured information like text and voice. This capability allows financial institutions to generate more meaningful insights from diverse data sources, creating a flexible framework for improving customer experience and internal operations. In a recent interview with FinTech Global, Amelia Lowe, VP of Operations at SquareTrade, shared her thoughts on AI’s potential impact on the financial sector. According to Lowe, the ability of AI to deliver insights is transformative for customer service. “Think of a scenario where representatives in a call centre feel empowered to have highly tailored, personal conversations with customers based on an intelligent understanding of their needs and their sentiment,» Lowe explained. «This is really about taking the next step—not just answering or mitigating a problem, but getting to the root cause of an issue straight away and truly understanding our customers.” Lowe emphasized how AI enables businesses to go beyond solving immediate problems, providing representatives with the tools to identify root causes and improve customer satisfaction proactively. This deeper understanding of customer needs is poised to elevate service levels, creating stronger relationships and increasing trust. The role of AI in customer interaction represents only one of its many applications in the financial industry. As the technology continues to evolve, it will likely play a critical role in risk management, fraud detection, credit assessment, and product recommendations. AI-driven insights are expected to streamline operations and offer competitive advantages to institutions willing to invest in these capabilities. For financial institutions, the implementation of AI is more than just an operational upgrade—it is a strategic shift toward customer-centric solutions. By combining intelligent data analysis with human insight, businesses can not only enhance their services but also anticipate customer needs more effectively. Lowe’s insights highlight the importance of leveraging AI to empower customer service teams. This evolution underscores the financial sector’s transition from traditional service models to smarter, more responsive systems.
Klarna’s «buy now, pay later» (BNPL) service is now accessible through Apple Pay, giving users in the US and UK new ways to make installment-based purchases online and within apps on iPhones and iPads, according to Finextra. This integration marks a significant step in Klarna’s efforts to offer flexible payments at every checkout, with a global rollout planned, starting with Canada in the coming months. «Consumers around the world have been asking for Klarna on Apple Pay, so I’m super proud to let them know it’s here,» said Sebastian Siemiatkowski, co-founder and CEO of Klarna. «This is a big step toward our mission to offer consumers Klarna at every checkout.» Eligible users can now select ‘Other Cards & Pay Later Options’ during checkout via Apple Pay and choose Klarna’s service to split payments into three or four interest-free installments or over longer periods. Klarna’s underwriting checks are applied before approving any purchase, ensuring a responsible lending decision. The arrival of Klarna follows similar moves by Monzo in the UK with the rollout of iOS 18. In the US, Apple has also partnered with Affirm to offer direct loan applications through BNPL, along with new rewards redemption options for Discover card users. This partnership comes shortly after Apple discontinued its own BNPL service to focus on collaborations with third-party providers. More banks and issuers—such as ANZ in Australia, HSBC in the UK, CaixaBank in Spain, and Citi with Fiserv in the US—are expected to join this trend soon, expanding access to installment-based payment solutions.
Toyota Insurance Management Solutions (TIMS) has entered a new partnership with Lemonade to expand its range of insurance offerings by adding home and renters insurance to its existing auto insurance policies, as highlighted in Fintech Global News. This collaboration reflects Toyota’s strategy to provide more holistic services, giving customers the option to bundle different insurance types for greater convenience. According to Coverager, Toyota aims to strengthen cross-selling opportunities by bundling home, renters, and auto insurance policies. Customers will benefit from a seamless experience by working with Toyota’s network of agents to select multiple insurance options in a single transaction. This partnership aligns with the company’s broader goal of enhancing customer loyalty through a diversified product offering. TIMS operates as an independent insurance agency and partners with several well-known carriers, such as Hartford, Liberty Mutual, PURE, and Travelers. In addition to collaborating with external insurers, Toyota provides a branded auto insurance product powered by Toggle, a subsidiary of Farmers Insurance, tailored specifically for Toyota vehicle owners. A critical aspect of Toyota’s insurance strategy is its Insure Connect platform, which focuses on usage-based insurance (UBI). This platform allows Toyota and Lexus drivers to share driving data in exchange for personalized insurance quotes. Safe driving behaviors are rewarded through discounts, promoting safer road habits and giving customers potential savings. Through this partnership with Lemonade, Toyota Insurance Management Solutions continues to position itself as a leader in offering comprehensive and customer-centric insurance services. This move enhances the company’s ability to meet a wider range of customer needs, solidifying its presence in both the automotive and broader insurance markets.
Oracle has launched a new AI-powered case management solution aimed at helping financial institutions enhance their response to financial crime. The tool, named the Financial Services Crime and Compliance Management Investigation Hub Cloud Service, streamlines investigation processes by reducing manual work, integrating data, and improving decision-making, as outlined in The Fintech Times. The Investigation Hub leverages graph analytics and embedded AI to automate tasks, manage workflows efficiently, and offer insights that empower investigators to focus on complex analysis and fraud prevention. “Bad actors are becoming increasingly sophisticated, leveraging advanced technologies, and exploiting vulnerabilities in traditional systems,” explained Jason Wynne, Oracle’s senior vice president of finance, risk, and compliance product development. “To stay ahead of these threats, financial institutions need flexible solutions that help detect, investigate, and prevent financial crime more effectively. Investigation Hub represents a significant leap forward, enabling institutions to conduct faster, more accurate, and cost-effective investigations by transforming data into actionable stories.” The solution, built on Oracle Cloud Infrastructure (OCI), integrates with other Oracle compliance tools and external data providers to give banks a holistic view of customer activities. It aims to reduce investigation time by up to 70%, shifting investigators’ focus from manual data gathering to high-value analysis. Typically, investigators spend 80% of their time collecting data and only 20% on analysis. Oracle’s new system reverses this ratio, helping financial institutions boost accuracy and speed in identifying fraudulent activity. Oracle confirmed that the Investigation Hub will receive ongoing updates with the latest AI and machine learning toolsfrom OCI Generative AI to ensure it keeps up with evolving regulatory requirements and compliance standards.