White House framework, B2B fraud challenges, and embedded finance

In this edition, we explore three pivotal developments shaping our industry: the U.S. government’s newly released fintech framework, fresh data on escalating B2B fraud, and the rapidly evolving landscape of embedded finance. Read on for a data-rich perspective on how these shifts impact businesses, consumers, and the broader financial ecosystem.

The White House’s new fintech framework, published by the US National Economic Council, outlines a set of principles aimed at guiding policymakers, regulators, and industry participants. It underscores the importance of consumer protection, financial inclusion, technological transparency, and the creation of standardized protocols that enable easier interoperability. This push from the highest level of government signals an open invitation for public-private partnerships, spurring innovation in areas such as small business access to capital and broader financial health.

Meanwhile, the Global Fraud Report 2024 reveals alarming insights into the rise of B2B fraud. Nearly one in ten orders in B2B commerce is confirmed to be fraudulent, and an additional 5.8% are rejected due to suspicion. With 60% of merchants planning to boost their fraud detection spending, industry experts project the global market for fraud prevention tools to grow from $50.72 billion in 2024 to $61.01 billion in 2025. First-party misuse, in which shell companies build up false credit scores before defaulting, stands out as a major concern and underscores the ongoing need for robust detection strategies.

In the realm of embedded finance, J.P. Morgan Payments recently unveiled a solution designed to accelerate payouts for Walmart Marketplace sellers. By integrating payment accounts and enabling real-time global transfers, this approach provides businesses with a single, trusted platform to manage both cash flow and funds movement. Traditional institutions like Citi, Wells Fargo, and Goldman Sachs have also bolstered their embedded finance capabilities by adopting more agile, API-driven offerings that expedite onboarding times and broaden the scope of payment options. This trend indicates a broader shift toward a more frictionless financial ecosystem, where banks and platforms collaborate to meet consumer and merchant demands with precision and speed.

From government-level directives on fintech evolution to urgent calls for advanced fraud prevention, and finally, the transformative potential of embedded finance, this week’s developments illustrate how rapidly the industry is moving toward a data-driven and user-centric future. As new frameworks, solutions, and technological breakthroughs continue to emerge, maintaining collaborative momentum across the private and public sectors will be vital to unlocking fintech’s full promise.

Articles featured in this week's newsletter:

1. The White House unveils fintech framework for US - FinTech Futures
2. Combatting Rising Fraud in the B2B Sector. How Fintech Solutions Can Help - Finextra
3. How embedded finance by J.P. Morgan Payments unlocks faster payouts and enhanced seller experiences - J.P. Morgan
4. How traditional banks are making embedded finance work without changing their DNA - Tearsheet