Integrating Finance as a Service (FaaS) into Non-Financial Apps: The Future of Embedded Finance

How non-financial platforms are evolving with embedded financial services to offer more value and convenience

 

Introduction

 

In an age where convenience is king and user expectations are higher than ever, applications are no longer limited by their original industry silos. One of the most impactful evolutions in this digital convergence is the rise of Finance as a Service (FaaS) — financial tools delivered via APIs — being seamlessly embedded into non-financial apps.

From rideshare apps offering instant driver payouts to e-commerce platforms with built-in “buy now, pay later” (BNPL) options, FaaS is redefining the user experience, unlocking new revenue streams, and disrupting traditional banking.

What is Finance as a Service (FaaS)?

 

FaaS refers to cloud-based platforms that offer modular financial services through APIs. These services include:

  • Payments & digital wallets

  • Lending & credit scoring

  • Insurance

  • KYC/AML compliance

  • Wealth management & investing

  • Fraud detection

  • Account issuance and management

Rather than building a financial infrastructure from scratch, companies can now plug-and-play financial features into their products through FaaS providers like Stripe, Plaid, Marqeta, and Solarisbank.

 

Why Are Non-Financial Apps Embracing FaaS?

 

1. Enhancing User Experience
Integrated financial services eliminate the need to leave the app. Whether it's splitting a bill, applying for a loan, or purchasing insurance, users get a frictionless, end-to-end experience.

2. New Revenue Streams
Apps can monetize through interchange fees, interest margins, or subscription models tied to financial services.

3. Customer Retention
Embedded finance increases stickiness. A freelance marketplace that helps users get paid instantly or manage taxes is more likely to retain them.

4. Democratization of Financial Tools
By embedding finance, even small businesses and gig workers can access tools previously reserved for enterprise clients or the traditionally banked.

 

Real-World Examples of FaaS in Action

 

  • Uber: Offers instant driver payouts and debit cards via integration with banking-as-a-service providers.

  • Shopify: Provides merchant loans and BNPL options embedded into seller dashboards.

  • Airbnb: Handles cross-border payments and currency exchange effortlessly through payment APIs.

  • Doordash: Offers financial wellness features to dashers, including early access to earnings.

 

Key Considerations for Integration

 

1. Compliance & Regulation
Even if you’re not a financial company, embedding finance means dealing with KYC, AML, and data protection laws. Partnering with a regulated FaaS provider is critical.

2. Scalability
Choose API partners that scale with you. Global compliance, multi-currency support, and performance at scale are non-negotiables.

3. User Trust
Finance involves sensitive data and money. Transparent UX, clear terms, and robust security are essential to building user trust.

4. Customization vs. Control
Some FaaS APIs offer turnkey solutions; others provide more control over the user experience. Choose based on your team's capability and your brand's needs.

 

The Future of FaaS and Non-Financial Apps

 

We're just scratching the surface. Expect:

  • More niche FaaS platforms (e.g., for creator economy, healthcare, logistics)

  • AI-powered financial insights directly inside business tools

  • Cross-platform integration with wearable tech and IoT devices

  • Decentralized finance (DeFi) elements brought into mainstream apps

 

Final Thoughts

 

Finance is no longer a standalone industry — it’s becoming a service layer in every app we use. With FaaS, any platform can become a fintech platform, unlocking powerful experiences that delight users and drive business growth.

Whether you're building a ride-hailing app, a marketplace, a healthcare portal, or a productivity tool — embedding finance might just be your next big competitive advantage.

 

Thinking of integrating FaaS into your app? Start by identifying user pain points where financial services could provide real value — and let the APIs do the heavy lifting.

Tags: Embedded Finance FaaS Finance as a Service API Integration Non-Financial Apps Fintech Trends