In the last 12 months we’ve seen massive changes in how we spend, save, borrow and transfer money. We live in a world of contactless payments and digital platforms, where cash and loose change are receding into the past and innovative financial solutions are a must-have for any digital business.
Embedded finance is set to be worth $138bn by 2026, up from $42bn in 2021, and it’s no longer just for traditional financial service providers – just look at Apple expanding from phones and computers to offer Apple Pay. As uptake keeps on driving innovation, embedded finance is at the point of no longer being optional. So if you haven’t tapped into embedded finance yet, this is the year to do it.
Rethinking the value chain
Create new revenue streams, increase customer loyalty, ramp up customer value through greater convenience and efficiency. These are age-old goals for any business, but the ways to achieve them are constantly changing. And now that embedded finance has gone from a specialist fintech tool to a digital innovator benchmark, it’s become a solution to all three.
Whether a customer is completing a payment, transferring funds or borrowing money, embedded finance makes the process faster and smoother while generating additional revenue from transaction fees.
Customers are no longer redirected away from your platform – so you can keep your brand prominent and processes seamless as customers aren’t redirected away from your platform. With complete control over the process you can also learn so much more about who your users are, what they want and what they spend their money on, and use that insight to better tailor the platform to them.
Embedded finance can also be key for expanding businesses thanks to the way it opens up cross-country payments.
This is exactly what Troc Circle are taking advantage of. Their global netting platform helps businesses to unlock important capital stuck in their accounts – receivable by netting out due invoices in their open network – regardless of the business’ accounting software or geographic location.
Troc Circle plans to leverage Weavr’s virtual card capabilities to allow its business users to pay out to their suppliers, and, at the same time, collect their receivables through the Troc Circle platform. With Weavr they can do that without needing to jump through compliance and regulatory hoops for each country, as the burden is handled on our end instead of theirs.
Next-level customer experience
But it’s not just about individual financial capabilities. The bottom line for embedded finance is that it offers a chance to redefine your customer experience – and what business wouldn’t want to improve that?
Customer experience doesn’t lie solely in beautiful graphics or a UI with clever navigation gestures. It’s in the infrastructure beneath the interface too, and basic things like how a payment is taken can make a huge difference.
Take peer-to-peer payments, for example. Whether it’s friends splitting a meal or taxi fare, or a family splitting the costs of education fees, the process has always been an onerous one. But embedded finance takes away the admin of manual bank transfers and makes it possible with a single click. Gone are the days of everyone fishing for cash to leave on the plate with the bill – we’re living in a contactless world, and embedded solutions are the way forward.
And seamless payment processing is just the tip of the iceberg in terms of what embedded finance can make possible. It also opens the door to personalising your customer journey to such a high degree that your customers will never be pulled away by a competitor’s more generic offering.
No sector is exempt
In 2022, Embedded finance won’t be the topic of conversation in the Fintech industry. It’ll be front of mind for any sector ripe for disruption, including the future of work, real estate, education, and health and wellness.
For instance, Healthcare fintech innovators Mosaic will use Weavr’s card options to underpin their vision of accessible healthcare for startups. Employers collectively pool resources, and employees can use their Mosaic card to effortlessly pay for the healthcare services they need.
In some industries the application of embedded finance will be supplementary but no less crucial. GrowIN Portugal, for example, is an innovative consultancy, fiduciary and legal services platform, that helps companies incorporate.
They already offer a range of value-adding services through their marketplace from tax assistance to content writing, human resources management and accounting. Through Weavr, they are planning to offer bank accounts and cards for business purchasing and employee expenses.
As practically every services sector is being digitised – transportation, leisure, logistics – embedded finance is becoming the tool of choice, enabling businesses to win by delivering more value to customers, generating more revenue and creating more stickiness.
Embedded finance is now easily attainable
Embedded finance isn’t just the future anymore. It’s the present, and it’s here for all brands to take advantage of, whether fintech has been a past priority or not. Innovators who want to stay disruptive can’t afford to wait until everyone else has got their systems in place before jumping on board themselves.
Embedding financial services into your marketplace has never been simpler. With Weavr’s revolutionary plug-and-play embedded finance solutions, you can easily, quickly and safely integrate banking features such as cards, accounts and IBAN’s into your UX and workflows – creating a seamless customer experience that directly enhances your offering.
Talk to us about embedding finance into your business.