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Embedded payments are changing the shape of payments for platforms, small to medium enterprises (SMEs), marketplaces, users, and consumers. But what is embedded finance? What are embedded payments?
McKinsey defines embedded finance as ‘the placing of a financial product in a nonfinancial customer experience, journey, or platform’ and as an invaluable tool for opening up new sources of revenue while enhancing customer experiences for businesses such as ‘retailers, business-software firms, online marketplaces, platforms, telecom companies, and original equipment manufacturers (OEMs).’
Forrester believes that embedded payments are a critical part of the payments fabric that allows companies to redefine the clunky and outdated payments solutions of old. The firm also believes that embedded payments are already in the past and that the true value of payments will lie in the technology that shapes embedded payments.
We believe that embedded payments give platforms the freedom to transform their payment processes and create new business opportunities while entering into new markets.
And for you? Well, before you decide, here are five reasons why your digital platform needs embedded payments.
Digital platforms can use embedded payments to significantly increase revenue by creating financial products that cater to the specific needs of their customers. Within an embedded payments ecosystem, digital platforms can offer myriad services and payment capabilities, allowing customers to manage all their financial needs from one centralised space. Customer service and value are wrapped into one cohesive space that gives customers what they need to thrive and grow.
How? Leveraging embedded payments and their customisable, white-labelled and agile capabilities, digital platforms can increase customer stickiness by creating payment capabilities that make it easy for them to manage payments, connect with their customers and improve cash flow. It allows the platform to create an integrated user experience that minimises friction while earning revenue from payments and value-added capabilities. You can use embedded finance solutions to create new revenue streams alongside your existing revenue models while driving a higher average revenue per user.
Small to medium business owners are busy. They’re also overwhelmed, stressed, tired and fed up with admin. No change today from 100 years ago, for sure, but with embedded payments, digital platforms can minimise a significant percentage of this admin while smoothing over the bumps in the payments road that traditionally trip SMEs up. As SMEs are your customers, you want to help them overcome these challenges with smart embedded finance solutions.
How? Embedded payments within a digital platform make it easier for SMEs to retain control over their cash flow and their admin while allowing them to provide their own customers with services and functionality that keep them coming back for more. Most customers - be they the SMEs using your digital platform or the customers using the SMEs for services and solutions - would like an easier life with less clicking and box filling and more quick and easy capability. With an embedded payments architecture, you can increase customer stickiness and lifetime value by creating a truly outstanding customer experience with minimum effort. Your customers get paid faster and save time because your platform has put everything in one place. Your onboarding is quick and painless. Your compliance across AML and KYC is smart and seamless. And you are in control of creating customer journeys that are frictionless and engaging.
Embedded payments are convenient for everyone. SMEs can use your white-labelled embedded payment solution to offer their customers multiple payment methods within a secure environment designed to make life as easy as possible. This only enhances customer satisfaction, creates seamless business transactions and takes the conversation straight back to reason number two - customer stickiness.
How? Using embedded payments, you can improve pay-outs and flexibility by shifting how you manage your funding flows as a platform. With a third-party embedded payment solution from UNIPaaS, you can introduce immense flexibility and scalability while improving the speed of payments and payment processes. Embedded payments help you bypass the long, tedious and painful processes that have made payments frustrating in the past, as your customers can simply pay and go. This is invaluable for cash-strapped SMEs that struggle with cash flow. Payments can be automated and you can use payment methods that include cards, open banking, Apple Pay and Direct Debit.
So, you’ve read all the benefits of implementing an embedded finance solution within your platform, but now what? Do you take on the risks of building a payment platform? If you would rather just leverage an established solution with built-in capabilities that allow you to start creating a rich ecosystem today, then you can simply white-label.
How? White-labelling a trusted embedded payment solution that aligns with your platform’s branding provides you with a compliant, agile and customisable payments system that enhances your reputation as a trusted space for SMEs. UNIPaaS provides you with every one of the benefits of a trusted, proven, scalable and stable payments solution that sits within your ecosystem. Branded with your identity, our white-labelled embedded finance solution sits within your infrastructure.
Embedded payments open opportunities for digital platforms to explore new markets and verticals. You can use embedded payments to build new revenue streams and explore new areas for growth while providing your customers the stability and flexibility they want.
How? You can use embedded payments to create cross-selling opportunities, improve subscription rates, and drive higher margins, thanks to your ability to diversify your offerings through embedded payments. Embedded payments enable you to build stronger relationships with SMEs within a transparent ecosystem that provides them with data, reports and insights that they can use to manage their businesses more effectively. All the while, you are enhancing your offerings and refining your pricing strategies in ways that connect with SMEs, open up new revenue streams and entrench customer loyalty and retention. You can also use embedded payments to become a payments facilitator and be empowered to enter new markets.
UNIPaaS has created a unique and accessible embedded finance solution that perfectly fits your platform. With UNIPaaS, your payment platform can create ecosystems that connect with your customers and deliver integrated digital journeys that simplify financial transactions.
In fact, you will also get the following benefits from UNIPaaS and our embedded online payments solution:
Our features can be customised to suit a broad range of industries and business types, and our proven service delivery, support and security reassure you of uptime, functionality, and safety. UNIPaaS is committed to reducing the risks, smoothing the road, and building a white-label embedded finance solution that perfectly fits your brand and your business.
UNIPaaS Financial Services Limited is regulated by the Financial Conduct Authority (FCA) as an Authorised Payment Institution (No. 929994). UNIPaaS is certified as PCI DSS service provider Level 1.
