Embedded finance is transforming modern platforms by integrating financial services into non-financial environments. This brings multiple benefits to businesses. For instance, with embedded finance, they can offer wallets, payments, and loyalty rewards within their existing ecosystems that otherwise have nothing to do with finance. The result is a far superior customer experience and smoother operations. This innovation is, arguably, even more impactful for marketplaces, as they gain the ability to provide in-house payment solutions and tailored financial products.
Recent market projections highlight the growing relevance of embedded finance, with its market value expected to surpass $138 billion by 2026. And no wonder, considering that API-driven financial solutions make it possible for non-financial platforms to generate new revenue streams, increase customer retention, and reduce friction. This clearly positions embedded finance as a critical enabler of platform-based commerce and business growth.
How embedded finance accelerates platform sales
Digital platforms have long evolved beyond simple venues for transactions, becoming powerful financial ecosystems in their own right. By embedding financial solutions directly into their operations, platforms can offer more than just products or services – they can provide banking, payments, wallets, and other features to their clients without requiring them to go off-site.
ConnectPay’s embedded financial services empower platforms to expand their offerings. More specifically, with our solutions, they can manage payments, automate billing, and provide instant payments, all within the platform itself. Our clients enjoy fluid processes, reduced operational costs, and higher sales – all thanks to a frictionless, all-in-one financial experience designed to boost customer loyalty and engagement.
Providing seamless payment solutions
A smoother, more integrated checkout process has been shown to directly boost conversion rates. For example, improving checkout design alone can lead to a 35% increase in conversion rates, particularly on large e-commerce platforms.
With this in mind, we at ConnectPay offer such easy-to-use payment flows. These can significantly reduce cart abandonment rates, helping businesses recover a large portion of the $260 billion lost annually due to poor checkout. Never underestimate the importance of convenience, especially among today’s consumers.
Improving your customer satisfaction
Platforms that offer tailored financial solutions see improved customer satisfaction and engagement, which translates to increased sales. Personalised offerings, such as flexible payment options or instant loyalty rewards, help customers feel valued, encouraging them to spend more and return for future purchases. This integrated approach drives long-term customer retention and boosts overall platform performance.
The thing to remember here is that customers nowadays expect, rather than simply prefer convenience when it comes to browsing or shopping online. Hence, the less friction in the overall experience – for instance, having to leave a given platform or switch between several websites – the more customer satisfaction you can expect. And a menu of contextually relevant finance options available right from the checkout screen is a great way to build trust and secure repeat business.
Data driven individual sales funnel optimisation
Embedded finance enables platforms to gather valuable consumer data by tracking user behaviour, payment preferences, and transaction history. This data can then be leveraged to offer personalised financial products, such as tailored offers or customised loyalty packages. Businesses can even use these insights to optimise cross-selling and upselling strategies on their platforms by recommending relevant financial services at the right time.
In essence, by using such data-driven approaches, platforms can provide more targeted, relevant, and personalised financial solutions to their customers.
For what type of businesses embedded finance is a must?
Since embedded finance offers great value across different types of platforms, it’s a must-have for most ambitious online companies seeking to scale:
- For eCommerce and SaaS platforms, embedded finance enables uncomplicated payments and recurring billing, which improves customer retention and satisfaction.
- Whereas for marketplaces, it turns platforms into comprehensive financial ecosystems, increasing transaction volumes while offering tailored services.
The flexibility and efficiency of embedded finance reduce operational costs and help businesses scale faster, positioning it as an essential growth driver for modern, ambitious digital companies – such as the one we’ll be expanding on below.
Marketplaces and eCommerce platforms
Similarly, platforms, marketplaces and eCommerce ventures benefit from embedded finance by simplifying their cross-border transactions and integrating financial services, which eliminates the need for third-party providers.
Furthermore, embedded finance streamlines processes like currency exchange and international transfers. This enables seamless, real-time payments beneficial to sellers and buyers alike. In addition, sellers can access capital more easily through embedded wallets, which boosts their ability to expand, and boost customer satisfaction and loyalty through faster transactions.
ConnectPay supports marketplaces by enabling multi-currency payments that allow users to transact in their preferred currency. This flexibility improves the buying experience and simplifies payments for sellers, ensuring quicker settlements.
Super apps
The long and short of it is this – embedded finance allows super apps to act as one-stop-solutions for their users, while simplifying transactions and creating new income streams. This also has a significant effect on their ability to scale – a unified and convenient user experience within a single ecosystem keeps users engaged, reduces friction, and ultimately improves retention and revenue.
Platforms with super app ambitions can accelerate growth by embedding services like payment gateways. ConnectPay’s APIs enable simple integration of payment solutions, which allows users to get everything they need from the same, trusted hub. Availing yourself of embedded finance is pretty much a no-brainer if you want to enhance convenience for your customers and encourage their loyalty to your app or brand.
Fintech and wealth management platforms
With integrated wallets, payments, and multiple currencies, fintech platforms and wealth management platforms can expand their offerings, simplify financial management, and secure a broader customer base.
Our accounts empower these businesses to provide convenient investment and financial management services. With a simple, quick, and inexpensive API integration, they can safeguard their client funds, improve customer satisfaction, and gain a competitive edge in the market by better serving their users.
What types of embedded services you can add to your stack with ConnectPay
To recap, we offer a wide range of embedded financial services, including payment gateways, digital wallets, multiple currencies, white label debit cards, andvarious payments. These features can help optimise a platform’s operations by streamlining transactions and improving financial management. Whether it’s providing working capital loans or facilitating investments, embedded finance boosts both platform efficiency and profitability.
To explore how ConnectPay can elevate your platform’s financial offerings, just head on over to our main page and look through the products and services listed there. And keep in mind – all of them can be embedded into your platform.
