How transformational has embedded finance already been in the context of financial services ?
EMBEDDED FINANCE
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How transformational has embedded finance already been in the context of financial services ?
Peter O ’ Halloran : Embedded finance is a transformative force reshaping the very nature of financial interaction . It enables non-financial businesses to offer a variety of financial products and services to their customers and unlock new revenue streams .
When it comes to payments , merchants and their customers both want a seamless and integrated experience .
Embedded solutions allow customers to access a variety of payment methods within the context of their usual transactions , without the need for a third-party app , which could disrupt the fluidity of the payment experience .
For example , a retailer that embeds a buy-now-pay-later ( BNPL ) option into its checkout process can deliver a seamless experience while capturing additional customer spend .
Merchants also can gain insight into customer purchasing activity to further tailor their offering , helping to build tighter relationships .
Ultimately , embedded finance has become a game changer for merchants and their customers and will continue to be a hugely desirable proposition for businesses .
Karine Martinez : Embedded finance has immeasurably changed the way people interact with financial services . If we look at the launch of Uber , customers now expect to be able to source , communicate and pay for taxis all in one app . That was unthinkable almost 15 years ago .
And it ’ s a global phenomenon . Instagram shopping has allowed us to move from photos of friends ’ holidays to booking a last-minute break effortlessly in one place . AliExpress has exploded in China for online shopping , while Booksy dominates online beauty services in the US .
Paying for items and services is the least exciting part of the customer experience , but absolutely necessary – and embedded finance has revolutionised that formerly laborious process into something far more convenient .
From a business perspective , offering these financial capabilities as part of the overall product increases customer loyalty and serves as an additional revenue stream .
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