APAC leads global embedded finance race as North American interest stalls

Nearly all APAC firms plan to invest in APIs and embedded payments throughout 2026.

Asia-Pacific small and mid-sized businesses (SMBs) are more interested in investing in embedded finance compared to their regional counterparts, as embedded payments and application programming interfaces (APIs) become more widely used, allowing them to offer services that were previously limited to larger firms.

Adoption is more advanced in Asia-Pacific and Europe compared to North America, with survey data showing that 98% of respondents in Asia-Pacific and 70% in Europe plan to invest in embedded finance, compared with 54% in North America, according to the Global Payments' 2026 Trends Report.

In Europe, 51% of respondents expect buy now, pay later (BNPL) to increase revenue by at least 25%, whilst only 28% of North American respondents share the same expectation. 

Payment industry leaders said North American consumers remain more reliant on traditional payment methods, whilst European markets show greater willingness to adopt new approaches.

Despite the growth, businesses face several challenges in implementing embedded finance. Integration with legacy systems can be difficult, particularly for firms using older technology or enterprise resource planning systems. 

Some providers offer low-code or no-code platforms as a workaround.

The financial benefits may not be immediate, and companies are advised to test new solutions or work with providers offering usage-based pricing or revenue-sharing models to manage costs.

There are also regulatory and cybersecurity considerations. Businesses adopting embedded finance may take on responsibilities such as customer verification and anti-money laundering compliance, and could become targets for cyber attacks. 

Providers that offer compliance support, including adherence to data protection rules such as the General Data Protection Regulation, may help address these risks.

Customer experience remains a key concern. Even when third-party providers manage the underlying systems, any service failure—such as declined loans or failed payments—can affect the business’s reputation. 

Companies are therefore expected to prioritise service quality, define clear agreements with providers, and address issues such as data ownership and cross-selling practices.