How Embedded Finance is Changing the Payment Landscape

How Embedded Finance is Changing the Payment Landscape

MICHAEL ZETSER

How Embedded Finance is Changing the Payment Landscape Embedded finance as a business opportunity is being utilized by companies across the board, with fintech leading the charge. The potential market for embedded finance is vast, with its value estimated to be in the region of $7 trillion dollars in ten years’ time.

How Embedded Finance Works The embedded finance model works by allowing businesses to manage and sell financial services by integrating them into the products and services they sell.

The aim is for these financial services to be embedded seamlessly into the payment process, with the result being both increased revenue and an upgraded overall customer experience.

MICHAEL ZETSER

Banking-as-a-Service

New Business Models

Banking-as-a-Service platforms are an innovative way of facilitating the embedded finance model.

These platforms enable businesses to easily integrate financial service elements into their payment processes and customer experiences. As an emerging market, BaaS is receiving great interest in the financial world, with new start-ups increasingly attracting investment.

Currently, the three main types of embedded finance are embedded payments, embedded lending and embedded insurance. Embedded finance is set to become the ‘norm’ if trends continue as expected over the next decade.

The embedded finance model works by allowing businesses to manage and sell financial services by integrating them into the products and services they sell.

Banking-as-a-Service platforms are an innovative way of facilitating the embedded finance model. These platforms enable businesses to easily integrate financial service elements into their payment processes and customer experiences.

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