Embedded lending—often called UI-native credit when delivered directly in-app—is rapidly reshaping the way households in the US finance everyday purchases. From electronics to health and home goods, buyers now expect fast, embedded credit options at checkout. They’re also spending more when those options are available. For finance leaders, this is a strategic mandate to offer embedded credit or lose sales volume to companies that do.
Embedded Lending is Growing Rapidly
Embedded credit is especially popular with younger buyers. According to RFI Global’s “How The World Pays In 2025” report, ~47% of Gen Z, ~40% of millennials, and ~31% of Gen X in North America have used BNPL. In total, 27% of US households currently use BNPL, compared to 90% using debit cards and 71% using credit cards.
Scale and Momentum are Evident From Volume Trends
Bain and Co. report that financial services embedded into e-commerce and other software platforms accounted for over $2.6 trillion in 2021 (~5% of all US financial transactions) and they are projected to exceed $7 trillion by 2026 (~10% of all US financial transactions). Further, North America currently accounts for about one-third of embedded credit consumption globally.
Embedded Lending Growth is Visible at Checkout
Consumer behavior shifts from 2024 to 2025 indicate increasing consumer comfort and familiarity with embedded lending products. Adobe reports that 8.1% of Prime Day sales were made using BNPL in 2025, up from 7.4% in 2024. The categories with the most substantial change were electronics, health & beauty, and home goods
Reuters confirmed that Prime Day sales climbed by more than 30% year-over-year from 2024, reaching $24.1 billion in 2025.
What do Borrowers Expect When Using Embedded Credit?
Modern borrowers aren’t just responding to embedded credit; it’s become an expectation. With embedded lending and BNPL available across leading North American platforms like Amazon and Walmart, users anticipate having instant, pre-filled, transparent credit options. When these expectations aren’t fulfilled—whether due to redirects, delays, or unclear terms, conversion rates fall. Behavior patterns are indicative of a new baseline of borrower standards.
In-Context, Seamless Buying Power Expansion
Embedded lending works best when it’s frictionless and native to the interface. User attention spans are short and checkout friction leads to elevated cart abandonment. It’s critical for UI-native credit to feel like part of a cohesive buying experience.
Today’s borrowers expect:
- Soft-pull pre-qualification
- Instant decisions
- Transparent repayment details:
- APR
- Number of installments
- Total repayment amount and payment schedule
These features are baseline expectations, not value adds. Delivering them in-app as part of the native shopping experience or onboarding workflow helps both lenders and platforms increase average order value (AOV) and optimize conversion rates.
Post-Purchase Servicing Remains Vital to Success
Maximizing borrower retention while minimizing servicing costs and default rates requires lenders to offer real-time payment updates and self-service repayment options as basic expectations. Offering repayment reminders and fall-back plans (e.g. rescheduling payments or alternative offers after a decline) can further optimize success with embedded credit offerings.
Systems Infrastructure Powers Embedded Lending at Scale
Robust, integrated software systems work behind the scenes to deliver satisfying borrower experiences that check all of the boxes. Soft-pull prequalification engines, automated loan origination, credit decisioning, and other key components depend on real-time infrastructure that’s fully compliant.
Embedded Credit is Moving Beyond Checkout
While adoption began in consumer e-commerce, embedded lending is now gaining traction in sectors like HVAC, dental, veterinary, and home renovation. These are areas where high-ticket purchases are commonplace and payment flexibility is increasingly an expectation. For lenders and brokers supporting these markets, embedded lending is creating real opportunities to provide financing when and where the decision is made, not days or weeks later.
Internal and B2B Finance Teams are Embedding Finance as Well
Internal finance teams at nonprofits, schools, enterprise organizations, and franchise groups are embedding origination and servicing workflows into their existing systems. Whether it’s a diocese lending to an affiliated school or a regional supplier offering installment financing to contractors, Centrex customers are building embedded experiences that stay branded, compliant, and fully self-managed.
Key Takeaway for Finance Leaders
Embedded lending has evolved from a checkout experiment to a dominant credit channel in North America and the United States. Borrower behavior is shifting and new verticals are exploring UI-native credit. Adoption is accelerating across both digital and traditional sectors, creating new expectations for lenders, platforms, and borrowers alike.
The resulting opportunities to lead rely on finance executives building and implementing systems, servicing workflows, and borrower experiences that are ready to meet buyers where they are going, not just where they have been.
Whether you’re offering loans directly, partnering with platforms, or building internal financing capabilities, now is the time to act.
