Embedded finance demand outpaces brand rollouts

Consumer demand for financial services embedded directly into brand apps is accelerating faster than many businesses can respond, according to new research from Galileo Financial Technologies, which is soon to rebrand as SoFi Technology Solutions.

The company's 2026 Galileo Integrated Financial Services Research Report, based on surveys of more than 2,000 U.S. consumers and 150 senior executives, found that while 80 percent of brand executives plan to launch integrated financial services, only 20 percent have done so to date.

The findings suggest many brands risk falling behind as consumers increasingly expect seamless payment, rewards and refund experiences within the apps they already use.

"The customer relationship is still up for grabs," Bill Kennedy, CFO and interim head of Galileo Financial Technologies, said in a statement. "It's no longer won at signup. It's won at the refund, the payment, the reward. Own those moments and customers stay. Get them wrong and they leave."

Payment experiences now central to brand loyalty

The research highlights how payment experiences are becoming central to customer loyalty and retention. Half of consumers surveyed said they chose one brand over another because paying or receiving refunds was easier, while 63 percent of those surveyed said they are more likely to continue using an app that offers faster, simpler payments.

Consumers also increasingly expect financial tools to exist natively inside apps rather than through separate banking relationships. More than half of respondents said they are comfortable using brand apps for instant refunds or in-app purchases, and 53 percent said they would be comfortable receiving direct deposits into app-based accounts.

At the same time, economic pressures appear to be reshaping payment behavior. Nearly one-quarter of consumers reported changing how they pay during the past year because of rising costs, including switching cards, using buy now, pay later (BNPL) services, or favoring apps with stronger rewards programs.

Alternative payments continue to gain traction

While debit cards remain foundational — 60 percent of consumers in the study still rely primarily on bank or credit union debit accounts — alternative payment methods continue gaining traction. The report found that 41 percent of consumers use digital wallets within brand apps, while 20 percent already use features such as instant refunds or BNPL in shopping and travel applications.

For brands, the urgency is growing. Twenty-eight percent of executives surveyed described their organizations as being in "crisis mode" regarding embedded financial services adoption, while 70 percent reported losing customers to competitors with stronger financial offerings.

The research also found that many brands prefer technology partners capable of managing compliance, fraud and operational risk. Sixty-two percent of executives in the study said assuming liability and risk management responsibilities is a priority when selecting embedded finance partners, while 53 percent emphasized ease of integration with existing operations.

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