Priya PatelTLDR:
Embedded finance technology is reshaping consumer journeys by eliminating the need for traditional intermediaries in financial services. Alan Irwin from Global Payments discusses the benefits of embedded payments for consumers and businesses, highlighting how it simplifies the payment process, enhances security, and improves customer experience. The rise of embedded payments is driven by consumer behavior and expectations, leading to a more seamless and integrated approach to financial services.
Article:
Embedded finance technology has been evolving to meet changing consumer and merchant behavior, offering products and services like deposits, lending, and payments without the need for traditional intermediaries. Alan Irwin, VP of Product and Solutions at Global Payments, explains that embedded finance is becoming more powerful through integration, allowing consumers to interact with digital interfaces and move money from within non-bank apps or software.
Irwin highlights the transformative impact of businesses taking ownership of the payment process, offering instant payments and buy-now-pay-later options to improve the customer experience. By integrating embedded payments across various touchpoints, businesses simplify the payment process and create opportunities for advanced data analytics and revenue generation.
Embedded payments meet consumer expectations for seamless and integrated financial services, reducing cart abandonment rates and improving security during transactions. The COVID-19 pandemic accelerated the shift towards cashless transactions, prompting financial institutions and businesses to offer embedded payment solutions as a cash alternative for customers and merchants.
Embedded finance has become a solution for both banks and non-financial services brands to provide a frictionless and integrated customer experience. By leveraging alternative data sources and open banking data, embedded finance providers can offer personalized and AI-driven engagement to enhance customer loyalty and retention.
Overall, embedded finance is reshaping consumer journeys by offering a more convenient and secure way to access financial services within daily activities, driving the evolution of financial technology and customer experience in the digital age.
