Embedded financial services have proven to be a game-changer for the industry , allowing non-financial operators to bring financial products and experiences directly to consumers in the places where they already interact online . It ’ s the technology that allows car rental or holiday booking sites to offer insurance at the point of sale , or merchants to offer instalments at checkout .
Indeed , embedded financial services on the whole are expected to reach a market valuation of US $ 83bn this year – up from US $ 65bn last year – according to Grand View Research . The runaway leader in this category , says Ernest & Young ( EY ), is embedded payments .
According to EY ’ s research , embedded payments are worth US $ 2.5tn a year and could reach a volume of US $ 6.5tn by as soon as 2025 . Embedded payments , and the data underlying them , help consumer brands to launch new propositions , increase loyalty , and boost customer retention .
“ As brands integrate the payment flow , it becomes easier to add other products to that payment flow , like lending or insurance ,” explains Aaron Byrne , EY-Parthenon Financial Services Leader .
Growth of embedded banking should prompt banks to act The promise being shown by embedded lending is something that PwC concurs with .
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