Embedded payments explained: a complete guide for 2026

Within this blog, you'll discover how to integrate payment processing directly into your platform, from automated split payments and escrow services to white-label checkout experiences. Key topics include choosing providers based on FCA licensing, pricing structures (volume-based versus fixed fees), marketplace-specific features, and support quality. Implementation considerations include auditing current payment costs, evaluating provider alternatives, planning payment monetisation strategies, and optimising user experience to reduce cart abandonment.

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Embedded payments are entering a pivotal phase. According to Juniper Research, global transaction values for embedded payments will surpass $2.5 trillion by 2028, up 134% from 2024. For marketplace operators and platforms, this isn't just a trend; it's a fundamental change in revenue models, customer retention, and product development.

"Most marketplaces are leaving money on the table," says Sadra Hosseini, CEO and Co-founder of Ryft. "The platforms winning in 2026 will be those that leverage embedded payments as a core revenue stream, not just a checkout button."

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What are embedded payments? 

Embedded payments are payment processing capabilities integrated directly into a platform or marketplace, enhancing the overall user experience and enabling functionality like split payments. Instead of redirecting customers to external providers, the entire payment flow happens within your user interface.

Think of how Upwork operates. When a client hires a freelancer, payment is captured upfront but held securely in escrow until work milestones are completed. Once the freelancer delivers and the client approves, Upwork automatically splits the payment, deducting platform fees and service charges while releasing the remaining amount to the freelancer's account. The entire process happens seamlessly within Upwork's platform, with clients and freelancers never leaving the interface or dealing with external payment providers.

This is embedded payments in action: capturing funds, holding them conditionally, managing multi-party splits, and maintaining complete control over the payment experience.

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Types of embedded payment solutions

Integrated Payment Gateways

Integrated Payment Gateways provide API access to payment networks, accepting cards and digital wallets through a single integration. Best for marketplaces needing broad payment method support.

Custom Payment APIs

Custom Payment APIs offer maximum flexibility for building bespoke payment flows. Best for platforms with technical resources and specific requirements.

Split Payments 

Split Payments automatically divide transactions between multiple recipients, essential for any multi-party marketplace. Deduct platform fees in real-time while paying sellers instantly.

Escrow Services 

Escrow Services hold funds until specific conditions are met, building trust in high-value transactions. Best for marketplaces handling expensive items or complex services.

Recurring Payments

Recurring Payments automate subscription billing with intelligent retry logic. Critical for platforms with membership tiers or ongoing services.

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Why Embedded Payments matter for 2026

• Revenue Generation. Marketplaces are discovering that payments can shift from operating cost to profit center with transaction monetisation
• Customer Expectations Evolve. Users now expect frictionless, one-click experiences. Redirecting to external payment pages feels outdated and reduces conversion compared to whitelabel payment experiences. 
• Competitive Differentiation. As more platforms embed payments, those without this capability face a competitive disadvantage.
• Security. Payment fraud costs e-commerce businesses billions annually. Modern embedded payment solutions deliver advanced fraud detection through 3D Secure 2.0 implementation for legitimate transactions, automated KYC/AML checks during seller onboarding, and real-time monitoring that detects unusual patterns instantly.

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Real results: How Tuft marketplace transformed their payments 

Tuft, a growing UK marketplace, faced escalating payment costs with their previous provider. After switching to Ryft's embedded payment solution, they achieved 62% reduction in payment processing costs plus automated split payments across thousands of sellers.

"We needed a platform that allowed us customisability and price flexibility," explains Chloe, Co-founder & CEO of Tuft Global. "Most importantly, we wanted to be seen as a partner and not just another cog in the wheel."

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Embedded payment solutions for marketplaces

• Turn payments into revenue. Generate income from every transaction processed through your platform. 
• Deliver seamless user experiences. Keep customers within your branded environment throughout the entire purchase journey. White-label checkout experiences convert better, directly impacting cart abandonment and customer lifetime value.
• Automate complex operations. Split payments automatically between your platform, sellers, and other parties. Deduct fees in real-time. Schedule payouts based on your terms. For marketplaces managing hundreds of sellers, automation is essential for operational efficiency.
• Maintain compliance. Navigate PSD2, PCI DSS, KYC, and AML requirements with solutions built for regulatory compliance. FCA-licensed providers ensure you're protected as regulations evolve.
• ‍Scale Without Friction. Modern embedded payment platforms handle volume spikes during peak seasons without impacting performance.

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Choosing the right payment services provider for 2026

Compliance and licensing

In the UK, FCA authorisation matters. For European expansion, PSD2 compliance is mandatory. Providers without proper licensing create a massive risk.

Marketplace specialisation

Generic payment processors struggle with marketplace needs. Essential capabilities include automated split payments with flexible commission rules, seller onboarding flows with compliance verification, and multi-party reconciliation.

Pricing structure

Volume-based pricing saves money as you scale. Calculate total costs including per-transaction fees, monthly platform fees, payout costs, and currency conversion charges. 

Customer support quality

Payment issues need immediate resolution. Look for 24/7 human support from experts who understand marketplace challenges, not chatbot-only or slow ticket responses.

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Best embedded payments providers

• Stripe Connect powers marketplaces globally with mature documentation and broad payment method support. Best for large enterprises with international expansion plans, though with premium pricing and less UK/EU specialisation.
• Ryft was built by marketplace founders who experienced payment friction firsthand while scaling a marketplace. Purpose-built for UK and European marketplaces with FCA licensing, volume-based pricing (typical savings: 70% vs. Stripe), automated split payments, 24/7 human support, and deep regional compliance expertise.
• PayPal Braintree is the best option for brand recognition. PayPal's brand recognition reduces checkout friction and builds instant buyer confidence.

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How to prepare for 2026: software-led payments checklist for marketplaces 

☑ Audit Your Current Payment Costs. 

☑ Evaluate Provider Alternatives. 

☑ Plan for Payment Monetisation. 

☑ Prioritise Compliance

☑ Optimise User Experience

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Why choose Ryft as your embedded payment platform 

Your payment provider should be a strategic partner, not a vendor. They should understand marketplace economics, deliver purpose-built features, and grow with you as your platform scales.

Ryft is a leading Payment Services Provider (PSP) that specialises in marketplace payment solutions, ensuring full compliance and offering 24/7 support from humans. Using Ryft, businesses can accept payments anywhere, automate split payments, onboard sellers, set up delayed payments and recurring billing, earn commission from payment escrow, and much more.    

Speak with Ryft's payment experts about reducing costs while unlocking new revenue streams through embedded payments purpose-built for marketplaces.

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