The State of Embedded POS Financing in 2025: How Market Trends Are Driving Demand
.jpg)
Embedded financial tools are reshaping the way Americans pay for everything from kitchen remodels to knee replacements. At the heart of this shift is point‑of‑sale (POS) financing—a lending option built right into checkout flows, contractor tablets, and medical billing portals. Customers can apply, get approved, and finalize payment plans in minutes, often without leaving the screen they’re already on.
While retailers first popularized the idea with “buy now, pay later,” 2025 is proving that home improvement and healthcare providers stand to gain just as much—if not more—from embedded financing. These verticals handle high‑ticket transactions that can strain household budgets, and they compete fiercely for consumer dollars. Offering an instant way to spread out costs is fast becoming a must‑have, not a luxury.
A Quick Primer: Embedded Finance, Embedded Banking, and Embedded Payments
Embedded finance puts financial services—loans, insurance, investments—inside non‑financial platforms. Embedded banking goes a step further by weaving bank‑like services such as credit lines, deposits, or branded cards into everyday apps, while embedded payments hide the act of paying entirely so money moves in the background after a single tap. All three concepts converge to power modern POS financing, because the contractor, clinic, or retailer can simply plug a software module into its checkout flow that pulls in lenders, underwriting, and payment rails through APIs.
Why Consumers Are Embracing POS Financing
Rising costs and tighter wallets make alternatives to high‑APR credit cards attractive, and approvals that happen in seconds give shoppers certainty about what they will pay each month. Breaking a $12,000 roof replacement into roughly $240 monthly installments feels doable even if the total price is unchanged, and the digital convenience mirrors how people already book rides or order groceries. Put together, those factors explain why consumers are gravitating toward POS financing.
The Numbers Behind the Trend
More than half—56 percent—of U.S. adults used an installment or “pay later” plan in the past 12 months, up sharply from 45 percent a year earlier. Within that group, 38 percent of shoppers tried a BNPL product in 2024 compared with 24 percent in 2023. Analysts also forecast that the U.S. embedded‑finance market will triple from roughly $30 billion in 2024 to $90 billion by 2029, and among consumers living paycheck‑to‑paycheck, 41 percent have maxed out at least one credit card, making structured installment plans especially appealing.
.png)
Home Improvement: Renovation Meets Real‑Time Lending
Americans spent an estimated $485 billion on home repair and remodeling projects in 2024, and spending is projected to rise again despite higher mortgage rates. A stay‑in‑place mindset, combined with the desire to avoid the paperwork of traditional home‑equity lending, makes POS loans ideal. Contractors that embed financing commonly report higher close rates—often jumping 20 to 30 percent—along with larger average tickets because customers feel comfortable upgrading materials once they see an affordable monthly payment. Cash flow improves too, since lenders pay the contractor up front and collect from the homeowner over time.
Healthcare: Patient Financing at the Point of Care
Out‑of‑pocket medical costs continue to climb, especially for elective procedures, high‑deductible plans, and veterinary care. A recent analysis showed healthcare accounted for 5.6 percent of all pay‑later purchases, averaging about $500 each. Providers that embed financing experience fewer cancellations because patients proceed when payments fit their budgets, better collections because clinics receive funds quickly while lenders manage repayment risk, and higher patient satisfaction because financial stress is addressed proactively.
How Embedded Banking Makes It All Possible
A typical tech stack features a front‑end widget dropped into a checkout page, an API aggregator that connects to multiple lenders for real‑time credit offers, a chartered banking partner that holds funds and ensures compliance, and a payment processor that disburses money to the merchant while collecting from the borrower. Because each layer is modular, even a five‑person roofing company or a single‑location dental office can launch financing without hiring developers or navigating complex banking regulations.
Embedded Finance Examples You’ve Probably Seen
You may have spotted a furniture website displaying “$0 down, as low as $89/mo” beneath every sofa, or received a text from a dental practice letting you pick a six‑, 12‑, or 24‑month plan right after your cleaning. Contractors often use a tablet app that pre‑qualifies homeowners for multiple loan offers while measuring windows. These embedded payments examples all demonstrate the same principle: reduce friction and win the sale.
.png)
Benefits for Merchants and Practices
- Conversion lift: Up to 40 percent more deals close when financing is visible early in the sales conversation.
- Bigger basket sizes: Average order values can rise 20 to 50 percent as customers upgrade or add services.
- Instant funding: Businesses receive funds within 24–48 hours instead of chasing invoices for months.
- Risk transfer: The lender, not the merchant, manages repayment and potential defaults.
- Customer loyalty: Offering flexible payments positions you as a problem‑solver, encouraging repeat business.
2025 Outlook: Regulation, Competition, and Opportunity
Regulators are paying closer attention to consumer‑lending disclosures, especially around BNPL, so clearer fee structures and standardized credit reporting are on the horizon. Competition among fintechs is heating up as some focus on prime borrowers while others specialize in “second‑look” offers for near‑prime credit. Multi‑lender marketplaces can deliver the best of both worlds by showing a range of approvals without forcing customers through multiple applications.
Where FinMkt Fits In
FinMkt has carved out a niche by tailoring its POS financing solution for home improvement and healthcare providers. With a single universal application, contractors and clinics can surface offers from several lending partners in real time, boosting approval rates and keeping the experience simple for staff and customers alike. Because FinMkt’s platform is API‑driven, it plugs neatly into existing CRMs, invoicing tools, or practice‑management software—no heavy lifting required.
Practical Steps to Get Started
- Map your customer journey: Identify where price objections crop up—during estimate reviews, treatment‑plan discussions, or checkout.
- Pick a platform: Compare approval rates, lender depth, fees, and integration effort.
- Train your team: Staff should know basic loan terms, how to explain soft pulls versus hard pulls, and how to guide customers through the application.
- Promote the option: Put financing messaging on your website, in marketing emails, and on printed estimates; visibility drives adoption.
- Measure results: Track close rates, average transaction size, and customer‑satisfaction scores to prove ROI.
Financing That Feels Invisible
By 2025, embedded banking and embedded payments will be so commonplace that customers will simply expect them—especially when facing four‑ or five‑figure bills. Homeowners and patients want control over cash flow; merchants and providers want quicker, more reliable revenue. POS financing delivers on both fronts.
The takeaway is clear: embrace embedded finance now, and you’ll ride the wave of consumer demand rather than chase it later. Whether you partner with FinMkt or another provider, the ability to offer instant, transparent financing at checkout is fast becoming table stakes in home improvement, healthcare, and beyond.
Sources:
Modern Retail - More people are using buy now, pay later for auto repairs and elective health care
Business Wire - Trends in Home Improvement
Globe News Wire - US Embedded Finance Report 2024
Pymnts - Momnt and ChargeAfter Team on Home Improvement Financing
