Vlad Macovei, Senior Editor at The Paypers, shares the key insights from Airwallex’ latest research into the forces redefining marketplace economics and the pivotal role now played by Embedded Finance.
‘Beyond Payments: how Embedded Finance is shaping the future of marketplaces’ provides a concise briefing on market momentum, pain points with legacy payments, and the revenue upside of moving beyond ‘pay-in/pay-out’ to full-stack financial ecosystems.
Key takeaways
According to Airwallex, marketplaces have moved from transaction facilitators to fintech-powered ecosystems. With 67% of global ecommerce sales now occurring on marketplaces, competition hinges on seamless, compliant, and revenue-generating financial experiences. Yet 42% of executives still cite integration complexity, and 25% cite regulatory hurdles as barriers to adoption. The report argues that Embedded Finance is no longer optional; it is the defining growth lever for seller retention, cross-border reach, and new monetisation streams.
1. Marketplaces dominate and diversify global commerce
In 2024, marketplaces captured two-thirds (67%) of worldwide ecommerce sales, extending far beyond retail into mobility, travel, and the creator economy. Their success rests on removing friction for both buyers and sellers, a mandate that traditional payment stacks struggle to meet across geographies and use cases.
2. Legacy payment infrastructure is a growth bottleneck
Fragmented vendors, high FX fees, and slow settlements erode seller trust and cash flow, limiting platform scalability. Executives confirm the drag: 42% believe that technical integration with existing systems is overly complicated, while 25% of leaders are deterred by regulatory or compliance hurdles.
“We want to consolidate the number of players we work with. Keeping up with so many different vendors can be a headache and gets in the way of our growth,“ according to the Head of Payments at a global marketplace.
3. Embedded Payments prove the business case
API-first, low-code solutions have lifted adoption. Shopify’s Shop Pay shows up to a 50% conversion lift when compared to a simple guest checkout, demonstrating that native checkouts translate directly into higher GMV (Gross Merchandise Volume) and customer lifetime value.
4. Beyond payments: wallets, lending, and card issuing unlock new revenue
A staggering 83% of sellers want more financial services (e.g. multi-currency wallets, working-capital loans, revenue-based financing) delivered inside their marketplace. These services deepen platform stickiness while opening fee, interchange, and interest income lines for operators.
“Embedded Finance isn’t just an upgrade – it’s becoming an essential lever for growth,” according to Airwallex.
5. Fintech partnerships de-risk global expansion
With more than 60 licences and 160+ payment methods, providers such as Airwallex give marketplaces instant access to local rails, competitive FX, and turnkey compliance. This PSP-agnostic model allows platforms to consolidate vendors, control fund flows, and monetise each transaction without PayFac registration.
6. Gen Z payment preferences accelerate change
Only 53% of Gen Z-ers use physical cards online; 39% prefer BNPL, while 32% other digital wallets. Marketplaces that embed Apple Pay, Google Pay, BNPL, or regional options reduce card abandonment and future-proof their checkout experience.
”Gen Z don’t really use physical credit cards – many of them don’t even have them – so, in order to facilitate accepting payments from them, we had to adapt and integrate digital payment methods, like Apple Pay and Google Pay,” according to the Senior Product Manager at an international travel marketplace.
7. Embedded Finance is now table stakes for competitive advantage
As real-time payouts, automated split settlements, and AI-driven compliance become standard, lagging platforms risk churn from sellers who expect daily liquidity and low-cost cross-border processing. Early adopters are already capturing higher margins by layering financial products atop core marketplace services.
Conclusion
Airwallex’s ‘Beyond Payments’ report makes a compelling case: fintech integration has shifted from ‘nice to have’ to strategic imperative. Marketplaces that embed payments, wallets, lending, and card issuing can uncover new revenue models, improve global operations, and deliver the frictionless experiences demanded by today’s sellers and buyers.
For leaders charting their next phase of platform growth, the report provides both cautionary tales and a roadmap towards competitive differentiation. Read the full Airwallex whitepaper for deeper data and case studies on companies like SHEIN and SNKRDUNK.
About the author
Vlad is a Senior Editor at The Paypers, working in the Banking & Fintech team. He uses his research, content, and people skills for all activities revolving around Open Banking and Open Finance. Vlad has a degree in Biology and Molecular Genetics and an extensive background in creative writing. You can reach out to him on LinkedIn or email.
About the company
Airwallex is a global payments and financial platform for modern businesses. They remove the unnecessary friction and cost inherent in the traditional financial system to help entrepreneurs achieve their global ambitions. Leading companies around the world trust Airwallex to manage everything from payments, treasury, and spend to Embedded Finance – all in one single platform.
