That was the central theme of “Embedding Security: Designing Fraud Risk Out of Business Transactions,” a March PYMNTS Intelligence Business Payments Tracker Series report in collaboration with WEX.

The report found that embedded payments are becoming core infrastructure for modern business platforms, helping companies move money inside the software they already use to run operations. That can make payments faster, easier and more visible. It also changes where fraud risk lives, spreading it across platforms, APIs, third-party partners and workflows.

The optimistic takeaway is that the same embedded structure creating new risks can also give companies more places to stop fraud earlier.

Embedded finance has moved beyond the experimental stage. WEX identifies it as one of the top business payment trends shaping 2026, with transaction value projected to exceed $7 trillion, nearly three times the $2.6 trillion recorded in 2021.

For businesses, the appeal is practical. Payments can become part of everyday work instead of a separate process. Companies can gain more control over spending, improve cash-flow visibility and reduce manual steps.

The risk is that older fraud tools were built for a slower and more centralized banking model. They often look for suspicious activity once a transaction is already in motion. In embedded payments, that may be too late.

Transactions can move through APIs and instant rails in seconds. Responsibility may be shared among banks, FinTechs, software providers and end platforms. Fraud can appear in the seams between those players, where visibility is harder to maintain.

The report pointed to several data points that show the promise and the pressure:

• Fraud attempts targeting embedded finance products are estimated to be growing two to three times faster than those across traditional banking channels. That suggests fraud is following the same growth path as embedded payments themselves.
• Fraud concerns have caused 35% of organizations to delay embedded finance and banking-as-a-service initiatives. The demand is there, but the risk is still slowing execution.
• Embedded finance is credited with reducing fraud risk by 74% of users. That finding suggests embedded payments can become safer when controls are built directly into workflows.

The shift is from detecting fraud later to limiting opportunity earlier. Virtual cards show how that can work. A company can set spend limits, merchant restrictions and authorization rules before a payment is made. Role-based permissions can determine who is allowed to initiate or approve transactions.

Multifactor authentication can add protection at access points. Real-time monitoring can flag unusual behavior as it happens rather than after money has moved.

Artificial intelligence is also becoming part of the fraud toolkit, although the report framed it as one layer in a broader system. KPMG data cited in the tracker found that 70% of banking CEOs plan to allocate 10% to 20% of their budgets to AI in the coming year. Enhanced cybersecurity is the top-reported benefit of AI adoption, cited by 24% of banking CEOs.

The broader message is that embedded payments do not have to trade speed for safety. Done well, they can make fraud prevention more precise because controls sit closer to the transaction. Identity, permissions, payment limits, monitoring and enforcement can all work together inside the flow of business. That gives companies a path to scale embedded payments with more confidence.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.