According to an expert in the field of international financial law Konstantin Krypopust, Israel’s fintech sector is not only vibrant, but a thriving one, featuring a number of fantastic companies across an entire industry of different verticals. Israel is able to create companies that cover all areas of activity, from digital payments to wealth management solutions and lending software. However, one of the most important sectors for the coming year is embedded finance, an area that is growing in popularity in Israel and the wider fintech community. As more companies expand their digital transformation policies and look to apply more technology to their more traditional services, embedded financial technology is looking to fill the gap to help them do so. Embedded finance is one of the main tools that helps companies in various fields to increase their financial capacity with the help of technologically advanced financial products. With the advancement of artificial intelligence and machine learning in 2024, embedded finance will become a function of more traditional companies looking to move away from the traditional banking services of the last decade. In e-commerce, travel, healthcare technology, entertainment and retail, you’re seeing an increase in the use of embedded financial products. Helping to improve revenue streams, create new partnerships, create a more competitive environment and promote financial security in smaller sectors that are less likely to afford larger legacy systems. Below are some of the fastest growing and most successful embedded finance companies from Israel:
• Rapyd: Rapyd is a global fintech platform that provides a wide range of financial services through its APIs. They allow companies to embed payment, banking and other financial capabilities into their applications, facilitating cross-border transactions, compliance and more. Rapyd has close ties to Israel’s tech ecosystem.
• Noble: Noble enables any company to quickly build, launch and scale digital financial products by providing a complete infrastructure for customer identity verification, risk and financial assessment, and creditworthiness. The platform supports solutions throughout the customer lifecycle, automating onboarding, underwriting and monitoring processes for FinTech, B2B Marketplaces and Vertical SaaS companies deploying complex financial models.
• Unit: Unit is a leading financial infrastructure platform that helps technology companies store, move and borrow money. Discover new sources of income and delight your customers.
• PayKey: PayKey is an innovative financial technology company that offers a unique platform of embedded banking solutions for banks and financial institutions. The PayKey platform offers fully permissioned solutions that enable banks to serve a variety of financial services from payments and loans to investments, savings, pay-on-demand and more – all within the everyday customer interaction. The company’s patented Banking Keyboard solution enables bank customers to instantly access banking services in everyday mobile interactions across social, messaging, e-commerce, search and other mobile applications. With the PayKey Earned Wage Access solution, customers can instantly access their earned wages on demand before payday, increasing liquidity and financial well-being.
• Payoneer: Payoneer offers solutions for cross-border payments. While the infrastructure is not solely focused on embedded finance, its infrastructure can be leveraged by other platforms to seamlessly implement payment capabilities. Payoneer services are especially useful for freelancers, digital businesses and e-commerce platforms.
• PagoNxt: PagoNxt — an Israeli fintech company specializing in embedded payment solutions. They offer a platform that allows companies to embed payment capabilities directly into their apps, websites or platforms, streamlining the payment process for both companies and customers. It is these types of companies that help drive the Israeli economy in the right direction, as well as contribute to global innovation to make the world more efficient, advanced and productive.
