The embedded finance market is expected to grow from US$146 billion in 2025 to US$690 billion in 2030. This rapid growth will come from platforms increasingly incorporating payment processing, lending, invoice finance, and insurance into the services offered.

Pragya Jauhari, a regular speaker at leading fintech and product conferences leveraging her experience in payments from roles at Booking.com and Amazon, will share insights on embedded finance at mpe in Berlin. In this interview with Dr Leo Lipis, Director at Payments Consulting Network, they discussed the opportunities and challenges for embedded finance, the role of product managers in payments and the hot topics of interest at mpe 2025.

Leo Lipis: You have previously held payments product management roles at Booking.com and Amazon. What does product management in payments involve and what are some of the key skills required to be successful in the role?

Pragya Jauhari: Product management in payments is similar to any other topic in that you have to see things from the customer’s point of view. The first thoughts always must be, “What problem are we solving?” and “What are the pain points?” The objective must be to improve the user experience and provide a valuable service.

Developing new solutions requires patience and technical knowledge. Of course, payments domain expertise is essential. You have to stay up to date with the latest technologies, trends, and regulations and apply these in the right context.

LL: Looking at embedded finance, what does this encompass when looking at payments?

PJ: By definition, embedded finance services are hidden, and the processes are not visible to the customer. The goal is to provide a better experience for the customer and in turn, to increase sales for the merchant. Buy Now, Pay Later (BNPL) is a perfect example. The back-office processes are invisible and convenient. No one would go to a bank to apply for a loan for a few hundred Euros, but they would fill out a simple form during online checkout. Everyone wins with a solution like this.

LL: What are the opportunities in embedded finance over the next few years?

PJ: Embedded finance and payments have largely focussed so far on the customer. But in many online transactions, there are three or four parties involved: the customer, suppliers, the marketplace, and the delivery person. I expect that the focus on embedded payments will shift to payouts to suppliers and delivery personnel – services like invoice management, digital wallets, foreign exchange hedging, and others will help suppliers and delivery personnel improve their cash flow.

Artificial intelligence could be used to define more personalised services. If we take a small merchant based in India that sells its products primarily over Amazon to customers in Europe as an example, it is not hard to imagine that AI-driven services to help them optimise their cash flow could be unbelievably valuable to them.

LL: What are the challenges being faced in successfully rolling out embedded finance solutions?

PJ: Because the processes are hidden from customers, they are also sometimes hidden from the financial institutions involved. So, it is challenging to create business models that work for all parties involved. Risk management, in particular, is especially difficult when financial institutions do not have direct contact with their customers.

We saw this, for example, with the rollout of the Apple Card in the United States a few years ago. For Apple and the end customers, it was a big win. But the card issuer had been counting on selling ancillary services and these did not materialise. So, they lost money. Apple then struggled to find a new partner.

LL: As a speaker at the mpe (Merchant Payments Ecosystem) conference in Berlin, what attracts you to this event?

PJ: As a proud payments nerd, I love to geek out with my fellow nerds about payments. This market is evolving rapidly and dynamically, and mpe always gives great opportunities for me to talk with others, understand the latest developments, and how a wide variety of players are responding.

LL: What are some of the key topics of most interest to you at mpe 2025?

PJ: We have already talked extensively about embedded finance and payments, and I am eager to see how these services will continue to develop this year, especially in light of the next revision to the European Unions’ Payment Services Directive (PSD3). The EU aims to drive open banking further into the market and it will be interesting to see the impact of the Directive. Last, but not least, artificial intelligence (AI) is clearly a hot topic, and I am very curious to see how it will be used to personalise payment services.

Note: The content of this article does not reflect the official opinion of Booking.com, Amazon or Payments Consulting Network. The information and views expressed in this publication belong solely to the authors.

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Pragya Jauhri is speaking at mpe 2025 in Berlin from 18-20 March 2025. She will be presenting on Day 2 Session 2 on Embedded Payments and taking part in the panel discussion following that on the same topic.

Payments Consulting Network is a media partner for the conference. For more information on the conference and to register, please click here. Payments Consulting Network and Merchant Advisory clients/followers/readers can use this discount code when registering to obtain a 10% discount: paymentsnetwork10. This code is valid until March 18.

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Author: Leo Lipis, Director, Berlin, Payments Consulting Network  

Drawing on 25+ years of expertise in payment market analysis and product development, Leo offers invaluable business insights for strategically managing product and service innovation. Internationally recognised as a payment system design authority, Leo has comprehensive knowledge of payments and related industries.

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