Embedded Finance Beyond Retail: Sector-by-Sector Opportunities in Automotive, Hospitality, and Telecommunications

Embedded finance is rapidly moving beyond its retail roots, transforming industries as diverse as automotive, hospitality, and telecommunications. As digital platforms become the primary touchpoints for customer interaction, every moment—whether buying a car, booking a hotel, or managing a mobile plan—becomes an opportunity to deliver seamless, value-added financial services. This evolution is powered by advances in technology and strategic partnerships, and Publicis Sapient is at the forefront, enabling organizations to unlock new revenue streams and deliver differentiated customer experiences across sectors.

The Rise of Embedded Finance: More Than a Retail Revolution

While retail has led the way in integrating payments, BNPL (Buy Now, Pay Later), and loyalty programs into digital journeys, other industries are now embracing embedded finance to meet changing customer expectations and drive business growth. Non-banking companies are leveraging their large customer bases and behavioral insights to integrate payments, lending, insurance, and more directly into their digital experiences. This not only simplifies transactions but also creates new value propositions that traditional banks alone cannot deliver.

Technology Enablers: APIs, Cloud, and AI

The embedded finance revolution is made possible by a convergence of modern technologies and collaborative business models:

APIs and Open Banking: Secure, standardized APIs allow non-banking platforms to connect with financial service providers, enabling real-time payments, credit checks, and account management within their own ecosystems.
Cloud Computing: Cloud-native platforms provide the scalability and flexibility needed to deliver financial services at speed and scale, supporting everything from instant payments to composable banking products.
AI and Data Analytics: Advanced analytics and AI personalize financial offerings, automate risk assessments, and enhance customer experience by anticipating needs in real time.
Strategic Partnerships: Non-banking companies often partner with banks, fintechs, and technology providers to access regulatory expertise, core banking infrastructure, and innovative financial products.

Sector-by-Sector Deep Dive

Automotive: Financing the Future of Mobility

The automotive industry is undergoing a digital transformation, with embedded finance playing a pivotal role. Car manufacturers and mobility platforms are integrating financing, insurance, and payment solutions directly into their digital experiences. Customers can now arrange vehicle financing, purchase insurance, and set up automated payments—all within a single app or online portal. This integration extends to new mobility models such as car subscriptions and ride-sharing, enabling flexible payment options and real-time credit assessments. Automotive companies are thus able to offer end-to-end mobility solutions, enhancing customer convenience and unlocking recurring revenue opportunities.

Hospitality: Seamless Stays and Smart Payments

In hospitality, embedded finance is redefining the guest experience. Hotels and travel platforms are embedding payment, loyalty, and insurance services into their booking and stay management systems. Guests can pay for rooms, amenities, and experiences with a single click, access instant refunds or travel insurance, and earn or redeem loyalty points—all without leaving the hotel’s digital environment. For business travelers and event organizers, embedded finance streamlines expense management and reconciliation, reducing administrative burdens. Hospitality brands are also exploring partnerships with fintechs to offer tailored financial products, such as travel financing or dynamic pricing based on real-time demand and customer profiles.

Telecommunications: Connecting Commerce and Finance

Telecommunications companies are uniquely positioned to leverage embedded finance, thanks to their vast customer bases and digital infrastructure. By integrating mobile payments, microloans, and insurance products into their platforms, telcos are transforming from connectivity providers to financial service hubs. Telecom operators in emerging markets have pioneered mobile wallets and peer-to-peer payments, driving financial inclusion for millions. In mature markets, telcos are embedding payment and credit solutions into their apps, enabling customers to pay bills, top up accounts, or access financing with ease. These offerings not only enhance customer stickiness but also open new avenues for monetization and cross-industry collaboration.

Partnership Models and Business Impact

The success of embedded finance in these sectors hinges on collaborative partnership models. Non-banking companies often work with banks and fintechs to deliver regulated, secure, and innovative financial products. For banks, this means providing the underlying infrastructure and compliance expertise, while non-banking brands focus on customer experience and distribution. This symbiotic approach allows all parties to reach new customer segments, unlock new revenue streams, and deliver differentiated value.

How Publicis Sapient Supports Cross-Industry Transformation

Publicis Sapient brings deep expertise in digital business transformation, payments modernization, and embedded finance. We help organizations across automotive, hospitality, telecommunications, and beyond to:

Modernize payment tech stacks: Replace legacy gateways with cloud-native, modular platforms that support real-time, always-on payments.
Leverage AI and automation: Deploy advanced AI models for fraud prevention, operational efficiency, and personalized customer experiences.
Accelerate integration: Use proven accelerators and agile delivery methods to integrate payments and financial services into existing digital journeys quickly and securely.
Navigate regulatory change: Assess the impact of new regulations and embed compliance into every stage of the transformation journey.
Unlock new business models: Enable payments-as-a-service and composable financial services to open new revenue streams and drive innovation.

The Road Ahead

The future of embedded finance is cross-industry, customer-centric, and technology-driven. As automotive, hospitality, and telecommunications companies embrace this new paradigm, the winners will be those who move quickly, innovate boldly, and put the customer at the center of every decision. Publicis Sapient stands ready to help organizations design and implement embedded finance solutions that not only enhance customer experience but also unlock new growth opportunities in an increasingly digital world.