It’s easy to lose sight of just how much the way we pay has changed.
One of the most exciting milestones of my childhood was getting my first wallet. It felt like a rite of passage — a symbol of independence in a big world.
“Technology has brought immense convenience to our daily lives, and expectations for the same simplicity in corporate environments are growing rapidly. Employees want frictionless experiences at work, just like they have at home.”
And what a symbol it was. A dinosaur-themed velcro number, complete with a satisfying ripping sound when it was opened that even today provides a solid dose of nostalgia. Inside were trinkets of value, that grew and changed as I did: a few notes of cash (yes, that still existed), my student ID, library card, bus card, video-store membership, and of course, my debit card.
That wallet became part of my identity. I couldn’t go anywhere without it because it held the keys to the experiences I wanted.
It’s quite a different story today. I’ve since upgraded my wallet to a leather one, but honestly, it’s now little more than a fashion accessory, or an oversized holder for business cards (yes, they still exist). I haven’t uttered the words ‘where’s my wallet?’ in years, nor felt the dread of arriving at a restaurant without it.
We truly live in a digital world, where experiences are transacted through devices — phones, watches and more — that enable what we want to do. Today, the phrase we hear most often is: ‘where did I put my phone?’; a device which, in a world of embedded finance, has effectively replaced the wallet.
Second nature
Embedded finance is the delivery of regulated financial services — including payments, liquidity, and credit — directly within the digital platforms businesses already use.
It doesn’t replace older-fashioned institutions like banks, but it does reshape how financial services are distributed and consumed, shifting delivery from standalone channels into the background of our lives.
For consumers, embedded finance has become second nature in our lives. But we’re now seeing the experience make its way to the business world, driven by a desire for productivity and efficiency.
Technology has brought immense convenience to our daily lives, and expectations for the same simplicity in corporate environments are growing rapidly. Employees want frictionless experiences at work, just like they have at home.
The numbers tell a compelling story. According to Deloitte, total business-to-business transaction volumes are expected to grow to $US13 trillion by 2030.
In procurement, 83 per cent of buyers agree adoption of embedded finance will grow significantly in the next five years, and 76 per cent expect to implement it within two years.
The use of virtual cards, a cornerstone of embedded finance, is also surging. Business-to-business virtual card payments are projected to reach $US14.6 trillion by 2029, up from $US5.2 trillion in 2025, representing 83 per cent of the global virtual card market. According to some reports, businesses using virtual cards save an average of $US7 per transaction, while enjoying enhanced security and real-time visibility.
Partnering up
Global technology leaders are partnering with financial institutions to make this vision a reality. For businesses, embedded finance matters because it addresses longstanding inefficiencies.
At ANZ, we’ve launched the first pilot of our embedded finance capability. ANZ’s cards proposition integrates virtual card payments directly, allowing customer that are users of SAP’s Enterprise Resourcing Planning systems to pay any supplier, streamline cash flow, and automate reconciliation, all within one system, without needing to log in multiple times. . This innovation delivers real-time visibility, enhanced security, and a seamless payment experience for our clients.
The pace of change is accelerating. JP Morgan and SAP recently announced a strategic partnership to fast-track payment integrations. Their collaboration focuses on combining technologies like payments, supply chain finance and virtual card services to create additive experiences for customers.
These alliances underscore a global trend: banking and technology are converging to deliver simplicity, convenience, and efficiency in how businesses operate. And this trend will only move with pace, as advancements in artificial intelligence, including agentic capabilities, continue.
No need to reach
I still remember the first time I stepped out of an Uber and realised there was no need to reach for my wallet. No fumbling for cash, no asking for the amount, no waiting for a receipt. I had my phone, and that’s all I needed. The entire payment experience was integrated into the journey itself.
Embedded finance is not a product change, but a distribution and experience shift. As embedded finance moves deeper into the corporate world, it will redefine how businesses manage cash flow, reconcile transactions, and interact with suppliers. The future isn’t about payments and finance being a separate step, but seeing those disappear into the experience.
From the rip of velcro to the touch of a phone screen, payments and finance have gone silent, but their impact has never been louder.
It’s an exciting time for all consumers, and businesses, as the convergence of banking and technology creates a new era of simplicity and productivity.
Damian Kwok is Head of B2B Payables Propositions and Trade Digitalisation, Industry and Innovation, Transaction Banking at ANZ