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Adyen moves into embedded finance with dual product launch

The new services will allow Adyen’s users to access business financing and checking accounts, delivered via its own banking licenses.

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Pieter van der Does

Dutch payments provider Adyen has launched two SME-focused embedded finance products, “Capital” and “Accounts”.

“Capital” will allow businesses to access small cash advances via its platform, which it claims can be provisioned in “minutes” using its own proprietary data.

“Accounts” will offer eligible business users company-branded checking accounts, protected under the relevant local deposit guarantee schemes.

The move brings the Dutch firm into direct competition with companies such as Block, Stripe and PayPal, which it already competes with on payments, by offering credit products alongside its core payments function.

Both of Adyen's new products are offered via the company’s EU and US banking licenses, without the use of third-party providers to facilitate the lending, such as in the case of Paypal.

Both services are now available to all platform and marketplace businesses in the US and Europe via Adyen's existing platform. 

The Amsterdam-based firm, founded in 206, has grown into one of the largest payments firms in the world. 

The company currently employs around 2,000 people in offices in twenty-three countries.

The firm Adyen’s market cap is now somewhere around $41 billion, and it recorded $342.7 billion in payment volume and $646 million in net revenue in the second half of 2021.

Adyen’s co-founder and CEO, Pieter van der Does, believes "platforms are at the center of a transforming financial services industry".

The founder went on to discuss how “embedded finance is a logical next step for the company.

He added: "By historically investing in our banking licenses and industry-leading technology, we have positioned ourselves as the sole provider offering a full embedded financial product suite via a single integration".

Adyen CEO isn't the only one betting on the future of embedded finance, the news comes as many in the industry see embedded finance as being the future, particularly in areas such as business lending.

Research from Bain & Company has predicted that the total transaction value of all embedded finance is set to surge to $7 trillion in 2026 and will account for 10 per cent of all US financial transactions.

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