Embedded payments

What are embedded payments?

Embedded payments are payment capabilities built directly into a platform, app, marketplace, or software product. Instead of sending users to a separate payment provider or external banking flow, embedded payments allow customers, merchants, sellers, or service providers to pay or get paid inside the product they already use.

For example, a marketplace can let buyers pay sellers without leaving the platform. A SaaS product can allow its users to accept payments from their own customers. A gig platform can pay contractors directly through its app.

In simple terms, embedded payments make payments part of the product experience.

How do embedded payments work?

Embedded payments usually rely on payment infrastructure provided by PSPs, PayFacs, acquirers, banking partners, or embedded finance providers. The platform integrates payment functionality through APIs, hosted components, or white-label tools. This can include payment acceptance, merchant onboarding, KYC or KYB checks, payouts, refunds, reporting, risk controls, and settlement management.

The end user may not see the payment provider behind the transaction. They interact with the platform, while the payment infrastructure works in the background.

Embedded payments examples

Common examples of embedded payments include:

• marketplace accepting payments from buyers and paying sellers;
• SaaS platform helping its users accept payments;
• booking platform collecting payments for service providers;
• delivery app paying drivers or couriers;
• fintech app enabling account-to-account transfers;
• iGaming platform managing deposits and withdrawals;
• creator platform sending payouts to creators.

Embedded payments are common in platforms where payments are closely connected to the core user journey.

Embedded payments vs integrated payments

Integrated payments typically involve a business connecting payment processing to its software, website, or point-of-sale system. But embedded payments go further, making payments part of the platform's product experience and often including onboarding, payment acceptance, payouts, reporting, and other financial workflows for the platform's users.

In simple terms, integrated payments connect payments to software, and embedded payments make payments part of the software's value proposition.

Embedded payments in payment infrastructure

Embedded payments require more than a checkout form. Platforms need infrastructure for onboarding, provider connectivity, payment methods, routing, risk checks, settlement, payouts, reporting, and reconciliation.

As embedded payment flows grow, platforms may need to manage several providers, currencies, markets, user types, and transaction models. A central payment infrastructure layer can help keep these flows easier to control and scale. Corefy supports embedded payment setups by helping businesses connect providers, manage payment flows, configure routing, monitor transactions, and handle payouts and reconciliation across different payment methods and markets.