Sophie Guibaud, nominee director, IFC, and co-chair of the Saudi chapter of the Mena Fintech Association, breaks down the rise of embedded finance across the UAE and Saudi Arabia. She explains how buy now pay later, instant payments, and in-app financing are reshaping how people access financial services, without ever opening a banking app. Three key drivers are fueling the region’s rapid growth: Vision 2030’s regulatory push targeting 525 fintechs by 2030, the absence of legacy banking infrastructure, and a young, mobile-first population. In the UAE, cashless transactions are on track to hit 90% of all transactions by end of 2025. Sophie also highlights that embedded finance goes beyond BNPL, it’s transforming SME financing and merchant services too, while banks quietly reposition themselves as backend infrastructure rather than customer-facing brands.
Get the latest news and updates on FINTECH.TV
Fintech Powerhouse Sophie Guibaud on How Embedded Finance is Reshaping the Gulf
Banking is becoming invisible. You're already using it every time you tap "buy now, pay later" at checkout, get instant credit on a platform, or pay inside an app without a second thought. That is embedded finance — and the UAE and Saudi Arabia are moving fast on it. Joining me is Sophie Guibaud, IFC nominee director and co-chair of the Saudi chapter of the Mena Fintech Association. Welcome, Sophie, to Wall Street to Mena. Tell us — what exactly is embedded finance?
The simplest definition is: getting finance wherever you need it, at your point of context. Instead of going into an app, when you need financing or need to make a payment, it just happens in front of you, in the context you're already in.
So it's instant — you can pay anywhere, anytime. Saudi Arabia's embedded finance market is already valued at $20 billion. Why is this region moving so fast?
I think it's the combination of three factors. First, Vision 2030 is creating a positive urgency — the regulator and government have set a target of 525 fintechs by 2030, making it easier for fintechs to launch. Second, there is no legacy banking infrastructure to rip out. In Europe, we've had to fight against systems from the 1980s — that doesn't exist here. There are already instant payments and even a government-led KYC system, which makes the experience far simpler. And third, of course, a large, young, mobile-first population. That combination makes this an outstanding market for embedded finance to flourish.
That leads me to my next point. In the UAE, cashless transactions are expected to hit 90% of all transactions by the end of this year. What's driving that?
It's an outstanding number — and as users, many of us are genuinely grateful for it. It comes down to a few things: strategies like Dubai's Cashless Strategy, widely adopted platforms like Apple Pay and similar players already embedded in daily life, and a population that is culturally comfortable with QR payments, online transactions, and super apps. It's the same ingredients as Saudi — a population ready and eager to use the infrastructure already in place, combined with government momentum pushing contactless over cash.
Looking at the Gulf more broadly, Tabby and Tamara have made buy now, pay later mainstream across the region. Is that the most visible face of embedded finance right now?
It's the most visible face, because you see it everywhere and the user numbers are significant. But embedded finance is far broader than BNPL. Some of the services contributing even more to the ecosystem are those at the beginning of the supply chain — enabling merchants to purchase the goods they need to sell, helping SMEs manage inventory financing, and handling the collection and repayment of those loans. So embedded finance isn't only happening at the retail consumer level — there's a tremendous amount going on in SME financing that is quietly driving the whole ecosystem forward.
Banks, as you touched on earlier, are now repositioning themselves as infrastructure providers rather than customer-facing brands. What does that actually mean for the average person?
For everyday life, it means that instead of being locked into a bank that may not offer all the services or rewards you want, people can access financial services, insurance, and investments where and when they need them. That could be through a fintech app, but it could just as easily be through their favorite retailer — the place they shop every week — offering them financing, payment options, and loyalty rewards. People can now consume financial services where they want, with brands they already trust, rather than depending solely on the bank that receives their salary.
Thank you so much, Sophie, for joining us.