Embedded Payments for Post-COVID Business Recovery

Tuesday, April 19th, 2022

You deal with embedded finance when non-bank providers integrate financial services into a variety of marketplaces and services. The embedded finance era is taking hold. This type of finance generated $22.5 billion in 2020 and offers more than one benefit to businesses having been severely hurt by the COVID-related restrictions.

Embedded Finance Is on the Rise

Non-bank companies are increasingly embracing banking-like services aiming to retain customers and grow their lifetime value. Such services are called embedded finance.

This type of finance lets companies take control of the end-to-end customer journey and enter into partnerships with financial institutions (FIs). It allows companies to enjoy new opportunities for revenue streams and improve the customer experience and streamline processes.

Today, there is a growing demand for embedded finance. Financial institutions more often offer banking as a service (BaaS). According to Cornerstone’s survey of financial institutions, 11% of banks are already implementing a BaaS strategy, 8% are in the development process, and 20% are planning to develop. 

How Embedded Finance Can Help Your Business

Embedded finances can help businesses recover from COVID. Let’s see how.

  • Customer Retention and Increased Loyalty

Embedded finances can remove consumer pain points. Specifically, customers don’t need to go elsewhere to get access to financing. As a result, they’re more likely to complete a purchase and enjoy their purchasing experience, which increases customer loyalty. 

Moreover, consumers expect businesses to offer a simpler purchase journey and keep them away from stress and hassle. And embedded finance offers such benefits. Increasingly, companies that fail to provide such benefits can expect to lose their customers who’re looking for a more digitalized experience.

  • Ease of Purchasing Process

Ease of service makes customers complete more purchases. As a result, you grow your sales and retain your customers.   

  • Further Business Development 

The data you get by offering embedded financial services helps you better understand your consumers and their spending habits and needs. Such data can drive future business development.

Using the right payment services is critical to your success. So, it’s vitally important to work with a reputable payment-services provider in the U.S. Consider working with a payments expert like BestPaymentProviders.com that can help you with payment processing services, including embedded payments. 

Best Payment Providers the U.S. is dedicated to offering the most reliable review of merchant services providers at the time of writing by paying special attention to terms, complaints, and integration. 

Embedded Finance Helps Businesses Hurt by COVID

The embedded finance trend is growing. The interest in this type of service is increasing. You can use embedded finance to recover from COVID-related challenges more easily.