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BaaS vs Embedded Finance: What's the Difference?

Payomatix TeamApril 20, 20255 min read

The Distinction

BaaS is the infrastructure layer — APIs to a regulated bank. Embedded finance is the experience layer — a financial product surfaced inside a non-financial app.

Analogy

BaaS is to embedded finance what AWS is to Netflix. Netflix doesn't sell servers; it sells streaming. Embedded finance doesn't sell APIs; it sells better UX in apps that aren't banks.

Who Builds What

  • BaaS providers (like Payomatix): build APIs, hold licenses, manage compliance.
  • Embedded finance brands (Shopify, Uber, vertical SaaS): build the user experience and distribution.

    • The Punchline

    You need BaaS to deliver embedded finance. Embedded finance is the product; BaaS is the engine.

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