Why embedded finance is the next big thing for MSMEs

Embedded finance is here, even if people don’t necessarily know it yet. Defined as the practice of integrating financial services like payments, lending, and more into non-financial apps or platforms, it not only makes things easier for consumers but also allows businesses to access services like credit and loans faster, directly within the platforms they already use.

By 2030, fintechs could handle 75% of online consumer payments. But for those of us working on the frontlines of B2B finance — that future is already arriving.
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A recent piece from Asian Banking & Finance paints a clear picture: embedded finance is redefining B2B transactions across Southeast Asia, and the shift is happening faster in MSME-led economies like the Philippines, where Micro, Small, and Medium Enterprises (MSMEs) account for a huge chunk of employers. 
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What is embedded finance?

The best way to understand embedded finance is to look at a real-life example.

A good one would be a ride-hailing app such as Grab where payments automatically happen in the background instead of forcing a user to take out cash or cards. The app automatically taps into their saved payment method such as a linked bank account or e-wallet. Once the trip ends, the fare is charged instantly, and a receipt is sent through email or in-app notifications—that’s embedded finance.

But it goes beyond quick payments. By integrating financial services directly into the platforms they already use—like e-commerce sites, POS systems, or logistics apps—MSMEs can access tools like instant payments, buy-now-pay-later options, and even business loans without needing to go through traditional banks.
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How MSMEs will benefit

It’s worth looking at the many ways MSMEs can take advantage of embedded finance today.

1. Better Access to Credit – By leveraging real-time sales and transaction data, embedded finance providers can build an alternative credit score, streamlining the loan process for businesses just starting out.

2. Integrated Operations – Instead of juggling between platforms, MSMEs can manage sales, finance, and inventory all in one ecosystem.

3. Cost Efficiency – With fewer intermediaries and streamlined processes, transaction fees can be lowered (or even done away with). This makes financial tools that much more accessible.

4. Data-Driven Growth – Embedded finance unlocks a wealth of real-time data from daily business transactions, including sales patterns, customer behavior, and cash flow trends. MSMEs can use this data to help them make smarter, faster decisions whether it’s deciding on a marketing campaign or building a rewards program. 

At eTap, we see the transition by MSMEs into smarter solutions every day — across billers, merchants, remittance centers, and micro-entrepreneurs who rely on self-service, real-time, and API-enabled payments.

eTap Solutions is also constantly harnessing data and research to develop better financial solutions, even beyond self-service payment kiosks. While much of these initiatives are still under development, eTap Solutions welcomes any potential partner looking to make quality financial solutions accessible to Filipinos and the businesses they rely on.

Interested in partnering with eTap Solutions? Reach out via the official LinkedIn page or contact Joe at joe@etapinc.com!

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