APAC small firms plan embedded finance investment in 12 months

Europe stands at 70% and Latin America at 65% according to a 2026 payments report.

Small and medium-sized businesses (SMBs) are increasingly adopting embedded finance tools, as nearly 100% of firms in the Asia-Pacific plan to invest in embedded finance over the next 12 months.

Interest in embedded finance varies by region. In Europe, the figure is 70%, whilst in Latin America it is 65%. North America trails at 54%, according to the 2026 COMMERCE AND PAYMENT TRENDS REPORT.

The report suggests that one reason for stronger interest in Europe is the expected financial return from buy now, pay later (BNPL) services. 

Around 51% of European respondents expect revenue increases of at least 25% from BNPL, compared with 28% in North America.

The report finds that as digital payments and application programming interfaces (APIs) become more common, smaller firms are gaining access to financial services that were previously limited to larger companies. These include subscription billing, BNPL options, foreign currency payments, and integrated checkout systems.

Embedded finance allows businesses to offer financial services directly within their own platforms, rather than relying on separate banks or providers. 

This can include lending at the point of sale, payroll integration, and accounting-linked payments. The aim is to simplify operations such as tax reporting and supply chain management without adding significant complexity.

Toby Brown, Global Head of Financial Services Solutions at Google Cloud, said the focus is shifting towards delivering financial services in real time and within existing business processes. 

He noted that businesses are no longer just users of financial services but are becoming platforms that offer them.

The report highlights practical uses across sectors. Estate agents, for example, can use embedded tools to manage rental payments and split transactions for accounting. 

Home maintenance firms can introduce subscription models for regular services and process payments more efficiently.