Embedded Lending Explained: How Xero, Shopee, Stripe & More Are Changing Business Finance

Embedded lending is a fast-growing trend where non-financial companies (such as e-commerce platforms, SaaS tools, or even ride-hailing apps) offer loans or credit options to their users directly within their own apps or websites. This approach allows users to access financing at the exact moment they need it—without ever having to visit a bank or fill out lengthy paperwork elsewhere.

Why Is Embedded Lending Important?

For users, it means a smoother, faster, and more relevant way to access funds. For businesses, it’s a powerful way to add value, increase engagement, and sometimes create new revenue streams. Advances in fintech and APIs have made it possible for any business to integrate lending services into their platforms—often in partnership with licensed lenders, but sometimes with their own capital.

Because the platform already has access to your data—such as transaction history, business performance, or spending habits—lenders can make instant or near-instant decisions using automated checks. This removes much of the manual paperwork, document uploads, and delays associated with traditional loans, resulting in approvals and disbursements that can happen in seconds or minutes.

How Does Embedded Lending Work?

1. A non-financial platform identifies moments when their users might need credit (such as checking out, managing cash flow, or paying suppliers).

2. The platform presents a pre-approved or quick-apply loan or credit option, right in the user interface.

3. Users apply (often in a few clicks), leveraging their existing data from the platform (like transaction history or business performance).

4. The lender assesses risk instantly and provides an approval decision—sometimes in seconds.

5. Funds are disbursed, and repayments are often automated within the same platform.

Types of Embedded Lending

Embedded lending can take two main forms, depending on who is providing the loan:

1. Third-Party Embedded Lending

A non-financial platform integrates with an external lender (such as a bank or fintech). The lender provides the capital and manages risk, but the user never leaves the platform.

a. E-commerce Examples:

• Lazada & Security Bank Corporation (Philippines): Security Bank launched its virtual LazMall Flagship Store, enabling Lazada users to apply for loans and credit cards entirely within Lazada’s platform.

• Lazada & GCash (Philippines): GCash's lending arm, Fuse Lending, partners with Lazada to offer seller loans embedded in Lazada’s ecosystem.

• Lazada & JuanHand (Philippines): JuanHand powers Lazada FastCash, delivering instant consumer loans to shoppers using minimal credentials.

• Shopee & Permata Bank / Pallav Technologies (Indonesia): Pallav Technologies collaborates with Shopee and Permata Bank to streamline loan collections for Shopee through modern tech solutions.

b. Accounting/SME Software Examples:

• Xero + Westpac Invoice Financing: Westpac partnered with fintech Dancerace to integrate invoice financing directly into Xero, allowing businesses to borrow against outstanding invoices without manual uploads.

2. Platform-as-Lender Embedded Lending

The non-financial platform itself offers loans directly to its users, either using its own funds or working with a financing partner—but the whole process is managed within the platform.

a. E-commerce/Payments Examples:

• Stripe : Stripe, primarily a payments platform, offers working capital loans to businesses based on their payment processing data. The entire experience—offer, application, approval, disbursement, and repayment—happens within the Stripe dashboard. Stripe may use its own funds or partner with banks, but to the user, it's seamless and entirely "inside Stripe."

• Shopify : Similarly, Shopify provides loans to merchants using their sales history, all managed within Shopify.

• ShopeePay SPayLater (Malaysia): ShopeePay introduced features like SPayLater (Buy Now Pay Later), bill payments, and insurance—all embedded within the ShopeePay app, providing financial services directly inside Shopee’s ecosystem.

b. Accounting/SME Software Examples:

• Intuit QuickBooks : QuickBooks offers term loans and a line of credit based on a business’s transaction and cashflow data, with approvals in minutes and funds in 1–2 business days.

• Xero + Waddle : Xero’s acquisition of Waddle enabled seamless, automated invoice financing from within the accounting dashboard, leveraging real-time invoice and payment data.

Key Takeaways

• Embedded lending is about how and where lending is offered—not just who is offering it.

• Both third-party and platform-as-lender models can provide seamless loan experiences within non-financial platforms.

• Examples like Lazada, Shopee, Stripe Capital, and Shopify Capital show how flexible embedded lending can be.

As embedded lending continues to grow, expect to see loans and credit options pop up in more places you’d never have expected—even outside of traditional finance apps!

Imagine finding a home loan while looking for a property on 99.co  or PropertyGuru Group without having to leave their site. Or platforms like upwork , WerkSG offering instant micro-loans or “get paid early” advances to freelancers and gig workers —directly within their apps.

As embedded lending evolves, we predict these touchpoints could become just as common as seeing “pay later” options at checkout.

Is There Still a Need for Traditional Lending?

While embedded lending is fast and convenient, it’s not always a full substitute for traditional bank loans. Here’s why businesses and individuals may still turn to traditional lending:

• Larger Loan Amounts: Embedded lending typically focuses on small to mid-sized loans, often for working capital or consumer purchases. For major business expansion, property, or infrastructure loans, banks and traditional lenders are still the go-to source.

• Longer Tenure: Traditional lenders can offer longer repayment periods and more complex loan structures, which may not be available via embedded options.

• Regulatory/Compliance Needs: Some industries or loan types require in-depth due diligence, collateral assessment, or regulatory checks that only traditional banks can provide.

• Relationship Banking: Businesses with established banking relationships may get preferential rates, bundled services, or financial advice that goes beyond a simple loan.

• Credit History Building: For some, borrowing from regulated institutions helps build or strengthen credit scores and banking relationships.

FindTheLoan.com allows a borrower to reach multiple lenders in one single application, saving them time and money by being able to compare and find the loan best suited for them easily.

We offer a white label solution, allowing local SaaS tools like accounting software to embed lending into their solutions without having to build their own lending infrastructure, obtain lending licenses, or manage complex regulatory requirements. Our platform takes care of the application flow and lender integration so your users can access a marketplace of real loan offers—directly inside your software—while you focus on your core business. Interested parties can contact us here.

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