The boundary between retail and financial services is disappearing fast. More retailers are launching branded debit cards, credit products, and digital accounts than ever before, powered by fintech partnerships and Banking-as-a-Service (BaaS) platforms. What began as a loyalty extension is rapidly evolving into a new commercial model where retailers don’t just transact: they bank the customer relationship…
Embedded Finance Goes Mainstream
Historically, retailers relied on third-party payment processors and external loyalty schemes to understand their customers’ behaviour. But BaaS has changed the paradigm. By issuing their own branded financial products, retailers gain first-party transaction data, creating a much deeper understanding of spend patterns, preferences, and life events.
Where a checkout only reveals what a customer bought from the brand, an issued card or wallet can reveal everything else they buy, offering a 360° view that was previously inaccessible. This opens the door to more personalised recommendations, targeted rewards, and richer loyalty ecosystems.
Why Retailers Are Moving Up the Value Chain
There are three strategic drivers behind the shift:
Data intelligence as a differentiator: Retailers can now build richer customer profiles informed by real-world spend — not just browsing history.
New revenue streams: Interchange fees, credit revenue, subscription models, and partner tie-ins turn payments infrastructure into a profit centre.
Longer-term customer stickiness: When a customer uses a retailer-issued card or wallet, they become anchored to the brand beyond the checkout moment.
This combination of value creation and retention is why embedded finance is one of the fastest-growing investment categories in retail tech.
Fintech Partnerships Fuel Acceleration
Retailers don’t need a banking licence to offer financial products — BaaS platforms handle regulatory compliance, onboarding (KYC/AML), and infrastructure. That means brands of any size can now deploy:
- Branded debit or prepaid cards
- Credit products with loyalty integration
- Digital wallets linked to spend-based rewards
- Instalment or revolving credit at checkout
- Multi-currency accounts for cross-border shoppers
In short: fintechs bring the rails, retailers bring the relationship.
The CX Advantage
This isn’t just a financial play, it’s a customer experience strategy. Embedded accounts turn payments into a seamless, value-adding part of the journey. Customers get faster checkout, instant rewards, and personalised offers based on how they actually live and spend.
In a saturated e-commerce market where loyalty is fragile, account issuing gives retailers a powerful way to move from transactional interaction to relationship-led engagement.
As retail becomes more data driven, the future of loyalty will be participation in a financial ecosystem where the brand sits at the centre.
Are you searching for Account Issuing solutions for your organisation? The eCommerce Forum can help!
