Monetizing Embedded Finance

Embedded finance has a huge market with great potential stated Bahaa Abdul Hussein. It is no wonder that companies from different sectors are embracing embedded finances. Apart from adding value to their user journey, it is possible to monetize embedded finance. We look at some of the strategies that can be used to get sustainable profit from embedded finance.

How to monetize embedded finance?

When you monetize embedded finance, it must be done after due consideration. It should not be a short-term measure to earn some money. Instead, it must earn you sustainable profit. You must evaluate the services you are offering and how you can monetize embedded finance. It becomes easy to monetize when you are offering something of value. You must also look at your competitors and what they are doing. A few considerations to keep in mind are:

  • You must ensure the focus remains on the user. Ensure you offer a great user experience through the embedded finance services. That will allow you to monetize it to get the best profits.
  • You must focus on creating loyal customers who will remain with you. Doing so will help you get sustainable profits on a continuous basis.
  • Partnerships are the key when it comes to embedded finance. Collaborate with a reliable, experience, and reputed partner. This will make your job of monetization easier.
  • Ensure you comply with all regulatory norms. Compliance will ensure customers trust you and engage with you.

Strategies for monetization

There are two models that are usually in practice.

  1. Buy/Sell Rate

Buy rate refers to the operational costs of the service. Sell rate is the price the platform has defined for difference services. The margin between the buy and sell rate is the revenue stream you get.

  1. Commission model

A straight commission can be charged on the service. The commission is shared between the platform and the vendor. The whole process of commission being deducted and shared happens automatically.

Apart from these two strategies, you may work out other revenue models depending on the type of service you offer. For instance, a subscription model is a monetizing strategy you can consider. The applicability of this model would depend on the services and the value addition you provide.

When you monetize your embedded services do keep in mind all the stakeholders involved. Your business, your customer, your partner, and the end user – keep all their considerations in mind to ensure a sustainable profit.

The article was written by Bahaa Abdul Hussein and has been published by the editorial board of Fintek Diary. For more information, please visit

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