In recent years digital technologies have disrupted shopping experiences and electronic transactions between enterprises and their retail customers. Specifically, customers can nowadays purchase virtually every good and service on-line. At the same time, merchants and other on-line service providers offer personalized shopping experiences through their web sites and fulfill customer requests regardless of time and location. Contracts, payments, and other financial transactions are integral elements of such shopping experiences, which leads many services providers in integrating financial transactions in their offerings. This integration is commonly known as embedded finance or embedded banking. Likewise, the companies that enable this integration are usually characterized as embedded finance companies.
Embedded finance enhances non-finance services with full-fledged digital finance functionalities. Most incarnations of embedded finance services are integrated within customer-facing services i.e., services involving interactions with the end-consumer. As a prominent example, embedded payment services enable consumers to make payments whenever they make a purchase. In recent years, the interest on embedded finance is skyrocketing, which has led to a proliferation of companies that integrate banking and payment functionalities into electronic products and services. For instance, the popular Buy Now, Pay Later (BNPL) service enables on-line enterprises to integrate short-term financing functionalities with their products. Leveraging these functionalities companies can pay for goods and services at a future date.
The interest in embedded finance is due to various factors, including recent technological and regulatory developments. In particular, service providers and product vendors are increasingly embedding finance functionalities in their products for one or more of the following reasons:
Embedded finance enhances on-line products and services in different ways. A list of popular use cases follows:
The above-listed use cases provide a glimpse on the disruptive potential of embedded finance projects. They also explain why research firms anticipate a significant growth of the embedded finance movement, which is likely to exceed $100 billion by 2026. These are good reasons for on-line service providers to keep a close eye on embedded financial tools and to gradually develop their own embedded finance strategy.
API Management: A Powerful Tool for Creating Business Value
API Gateways: The Basics you Need to Know
Looking for reasons for Managing your own APIs?
The Potential of Big Data in the Telecom Infrastructure Industry
How CIOs can track and reduce carbon footprint to meet sustainability goals
Optimal Neural Network Architectures for Edge AI
Top Five Technology Predictions for 2023
Cobots: Robot Human collaboration for Industrial Applications
Blockchain technology for decentralized data provenance and traceability
Ten FinTech Use Cases that you need to know
We're here to help!
No obligation quotes in 48 hours. Teams setup within 2 weeks.
If you are a Service Provider looking to register, please fill out this Information Request and someone will get in touch.
Outsource with Confidence to high quality Service Providers.
If you are a Service Provider looking to register, please fill out
this Information Request and someone will get in
Enter your email id and we'll send a link to reset your password to the address
we have for your account.
The IT Exchange service provider network is exclusive and by-invite. There is
no cost to get on-board;
if you are competent in your areas of focus, then you are welcome. As a part of this exclusive