Embedded Finance Isn’t Just a Buzzword, It’s a Survival Strategy

Why This Matters Now

Over the years, working across Nigeria, Kenya, Ghana, Rwanda, and the Middle East, I’ve come to recognize a clear truth: access to financial services isn’t about technology but it is about trust, timing and context.

People don’t always need a bank. But they do need ways to send money, access credit, insure what they’ve built, and plan for tomorrow. And increasingly, they want to do that within the apps and platforms they already use every day.

That’s what embedded finance offers and for many African markets, it’s not just innovation, it's an essential shift. 

What Exactly Is Embedded Finance?

Put simply, embedded finance means offering financial tools like payments, lending, or insurance inside platforms like e-commerce sites, ride-hailing apps, and marketplaces..

Lets consider;

• A farming app offering seed loans at the point of sale
  
  

• A social media app enabling users to instantly send and receive money 

• A retail platform letting buyers to buy now and pay later

• A telco wallet offering savings and microloans via SMS
  
  

These services meet people where they already are. They remove friction. They unlock access. They scale trust.

What’s Driving This Shift in Africa?

The embedded finance market in Africa is expected to grow to nearly $40 billion by 2029, up from just over $10 billion in 2024.  Here’s why:

• More than 75% of adults in sub-Saharan Africa own a mobile phone, yet many remain excluded from formal financial services.
  
  

• Digital platforms have leapfrogged traditional infrastructure from mobile money to gig platforms to digital marketplaces.
  
  

• Unlike Europe or the U.S., Africa isn’t burdened by outdated banking systems, making it ripe for financial innovation.
  
  

We’re not trying to copy-paste Western fintech models. We’re building systems that reflect how Africans live, earn, spend, and save.

Some Case Studies

I’ve had the opportunity to work with some remarkable companies and teams across the continent who are embedding finance in ways that make real impact. Others have also influenced the narrative like;

M-PESA & Fuliza (Kenya)

Everyone knows the story of M-PESA. But it’s the evolution of products like Fuliza, which allows overdrafts via SMS that shows the power of embedded credit. In 2022, Fuliza disbursed nearly $3 billion in microloans. No app downloads. No paperwork. Just a service that works.

Twiga Foods (Kenya)

Twiga doesn’t just deliver fresh produce, it supports informal vendors with access to working capital, using their transaction history. That embedded financing has helped thousands of small businesses stabilize inventory and grow, without needing to walk into a bank branch.

Kobo360 (Nigeria)

For logistics drivers, waiting weeks to get paid used to be the norm. Kobo360 embedded instant payouts and trip-based loans, giving drivers faster access to earnings and more control over their cash flow. That simple change helped increase delivery volume and driver loyalty.

M-Kopa (East Africa)

By offering smartphones and solar kits on a pay-as-you-go basis, M-Kopa has reached millions. But more importantly, each payment builds a credit trail. These customers, many accessing formal finance for the first time, are quietly building financial identities one mobile payment at a time.

Why Embedded Finance Works

What all these stories have in common is proximity. Platforms are close to the customer. They understand behavior. They see risk differently. They build for reality.

Banks do many things well. But they can’t be everywhere. Platforms already are.

Embedded finance works in Africa because:

• It lowers the cost and barrier of entry
  
  

• It’s designed for mobile-first usage
  
  

• It uses real-time behavior data to assess needs
  
  

• It builds on existing user trust
  
  

For me, this isn’t about replacing banks. It’s about complementing them with tools that fit.

The Regulatory Side of the Story

I’ve worked with central banks and regulators in the States, Ghana,, and the Gulf. One consistent theme is emerging: policymakers are open to innovation, but expect responsibility.

As platforms embed financial services, there are important questions to address:

• Who’s licensed—and for what?
  
  

• How is user data protected?
  
  

• Are consumers fully informed and how are they being protected?
  
  

• Can embedded services be supervised effectively?
  
  

In many countries, regulatory sandboxes have allowed for experimentation within bounds. That’s progress. But we also need durable frameworks, not just pilot permissions to ensure these services scale safely and fairly.

What I Tell Founders and Investors

Embedded finance is not just a feature you tack on. It’s a strategy.

I always ask:

• What financial pain point are your users already experiencing?
  
  

• Can you solve it within your platform, without forcing them to leave?
  
  

• Is there a licensed partner you can work with to deliver that solution?
  
  

• How do you ensure transparency, compliance, and long-term sustainability?
  
  

When embedded finance is done well, it increases user retention, opens new revenue streams, and deepens impact. But it must be rooted in local behavior, regulatory reality, and trust.

My Perspective

For many in Africa, financial services are still out of reach not because they don’t want them, but because the current system wasn’t built with them in mind.

Embedded finance gives us a way to rebuild access from the ground up, one trusted platform at a time.

It’s not a buzzword. It’s a shift in power and for the companies, policymakers, and investors who get it right, it’s a shift that benefits everyone.