The Embedded Finance Phenomenon in Brazil: From Savings Books to the Digital Revolution
Embedded Finance represents the integration of financial services—such as payments and credit—directly into the digital journeys of non-financial companies. The goal is to make transactions faster and more convenient for the end user. According to PwC, Brazil is a global leader in this field, with market projections showing growth from USD 4.31 billion in 2024 to USD 13.82 billion by 2029*. This progress is driven by high smartphone penetration, robust digital infrastructure (such as Pix and Open Finance), and a vibrant fintech ecosystem.
To understand this transformation, we spoke with Karen Ferreira, a specialist with three decades of experience in the financial sector. She has worked for major card brands (Visa, Mastercard, American Express) and financial institutions (Santander, Mercado Pago). Her career has allowed her to witness Brazil’s evolution from a closed market to a more open and inclusive environment, driven by the Central Bank’s innovation agenda. Today, Karen leads KB Negócios, where she helps companies unlock new revenue streams within their partner ecosystems through embedded finance opportunities.
Trust Insight: Karen, could you explain what embedded finance is and how it connects to our e-commerce landscape?
Karen Ferreira: Embedded Finance allows companies across sectors—such as retail and e-commerce—to offer financial services without actually being financial institutions. They leverage their brand strength and customer relationships to offer products like credit or benefit cards to customers, employees, and suppliers, partnering with regulated companies. I call it “fishing inside the aquarium”—optimizing the existing ecosystem to create value and generate revenue without losing focus on the company’s main business.
TI: What motivates a company to enter this market?
KF: The motivations vary. Traditional companies often seek innovation and ways to “breathe new life” into their business. Others are driven by discomfort when they see competitors launching financial products, which sparks curiosity about new revenue sources and customer loyalty. The journey starts with consuming financial services, and as revenue and opportunities grow, a company may evolve into a payment institution or a direct credit company. The main challenge is selecting reputable, certified partners, as this journey requires ongoing technological, operational, and post-sale support.
TI: Karen, the Central Bank plays a crucial role in this process. What’s your view on its stance and Brazil’s position in the global financial innovation landscape?
KF: The Central Bank’s agenda is focused on inclusion—decentralizing financial services and increasing supply, which leads to greater competition and lower costs. Combined with Brazil’s high smartphone adoption, this has enabled both financial inclusion and scalability.
Brazil is far ahead of many markets in financial services and payments. This is largely due to Brazilians being early adopters of new technologies. While other countries still rely on paper and bureaucracy, Brazil has advanced with technologies such as facial recognition and proof of life verification—allowing continuous innovation in financial services. Over the past 10 to 15 years, Brazil has undergone a financial revolution, and many markets now look to us as a model.
How Trust Insight Can Support Your Embedded Finance Strategies
The complexity and pace of the embedded finance market in Brazil demand deep, strategic analysis. The expertise of professionals like Karen Ferreira (KB Negócios)—with practical experience and market insight—is invaluable for navigating this space. Trust Insight acts as a bridge between your business and high-level specialists. By leveraging our talent network for consulting and analysis, you can:
Identify and Implement Growth Strategies: Develop embedded finance models that align customer expectations with your business’s financial health.
Increase Average Ticket Value and Customer Loyalty: Implement solutions like “Buy Now, Pay Later” to boost sales conversions and strengthen relationships.
Navigate the Regulatory Landscape: Understand data security and compliance challenges under regulations like the LGPD, ensuring sustainable growth.
Our expertise in connecting your business with the most relevant market insights can be the key factor for success in your Embedded Finance strategy.
*Brazil is a global leader in this field, with market projections showing growth from USD 4.31 billion in 2024 to USD 13.82 billion by 2029 (CAGR of 26.2%).