Before we dive deeper into the benefits of embedded payments, let’s start with the basics. This means customers can make fast, simple payments enabled by NFC (near-field communication) technology at quick-service restaurants and retailers. According to a study from Juniper Research, revenue from embedded payments is set to grow by 84% in the next four years. That will amount to $59 billion worldwide by 2027, compared with $32 billion in 2023. Co-owner Ben Nourse says Lightspeed Payments has streamlined the business’ checkout process, specifically in regard to their hardware.

• But embedded solutions such as those for disbursements also offer tantalizing benefits to payees.
• What a missed opportunity for businesses to aggregate and standardize their payment processes!
• They jeopardize a company’s relationships with its valued suppliers and customers.
• Suppliers and individuals can never be sure when a paper check payment will arrive in the mail.
• EpicPay International LLC, DBA Fortis Payment Systems LLC is a registered Independent Sales Organization of Wells Fargo Bank, N.A., Concord, CA.

With embedded finance, sometimes called integrated commerce, and in particular, embedded payment technology, merchants and software providers can take another step toward seamless customer experience and improved retention. These trends are the result of digital platforms’ increased ability to embed payments directly into their website or mobile app, rather than redirecting customers to an external payment gateway. Making the purchasing experience a seamless part of your product experience has the potential to be a low-lift investment that can yield powerful returns. Not only do embedded payments help improve your customer experience and retention, but they also accelerate revenue growth. But embedded payment solutions are built with bank-grade security that will assuage skeptical payees. And the payee-facing portal used by embedded payment solutions is branded with the payer name, logo, and colors, providing suppliers and individuals with confidence they are not being scammed.

Ways Payees Benefit from Embedded Payment Solutions

Embedded payments enable fast, easy transactions for businesses and their customers, and that can be related to hardware. With embedded payments, hardware is always up-to-date and compatible with the provider’s software. California-based casual lifestyle store Borrego Outfitters, which switched to Lightspeed this year, shows what this looks like in action. Let’s take it one step further and compare embedded payments with non-integrated payments. The likelihood of errors increase, because manual entry is required in order to process payments. Checkout.com is a payment gateway that makes it easier for businesses to accept payments online.

Any business that wants to cash in on the present e-commerce growth must institute measures to increase conversion rate and offer shoppers an amazing experience. Improving your checkout process is one of the key ways to optimize conversion rate. With an increase in revenue through processed transactions, plus expansion into new markets, the platform’s market value will increase. It is such a boost in value that more and more private equity firms insist that the SaaS companies they’re investing in or purchasing include payment functionality in their platforms.

Better traveler experience

On the other hand, embedding the payment system within your platform improves your brand’s reputation and enables shoppers to develop trust and confidence in your business. And while 37% were considering becoming payment facilitators, the vast majority (88%) would opt to embed third-party technology into their platform instead of attempting to build their own payment facilitation solution. The way that most businesses pay suppliers and individuals costs too much, takes too long, results in too many errors, provides inadequate visibility, frustrates payees, and creates too much risk. Fortis is a Payment Facilitator and ISO/MSP processing transactions for all major payment and banking networks.

Connect, often used in conjunction with other Stripe embedded finance solutions, is a way for platforms to benefit from embedded payments, without the workload and liabilities of building everything in-house. Suppliers and individuals can never be sure when a paper check payment will arrive in the mail. And the portal used by embedded solutions shows payees the real-time status of payments. What’s more, electronic payments are deposited directly into a payee’s bank account. For example, a bank might also offer to help consumers get rid of unused subscription services or invest in cryptocurrency right in their banking app—rather than downloading a new app or signing up for a new service. With the rise of embedded investing, consumers can now buy cryptocurrency from other platforms they already use, including Venmo and Paypal.

Implementing Embedded Payment Solutions for your Business

Learn more about how Stripe can help differentiate your platform and accelerate revenue growth, or get in touch with our team to get started. Read more about the benefits of becoming a payfac or using a payfac-as-a-service provider, like Stripe. By using Lightspeed Restaurant POS + Payments and other accompanying tools such as built-in reporting, Maynard was able to streamline their processes and save more than two hours a day. The solution has allowed them to simplify their operations and drive efficiency. We provide the list of best alternatives for software, games, apps, and websites that you already know or use and want to replace. Unlike other websites, we manually check and list only active alternatives to fulfill your requirements.

Infinicept is a provider of embedded payment solutions and services that help software companies gain the advantages of embedded payments, including increased revenue and more control of the merchant experience. More than 300 leading software companies, payment processors, sponsor banks, and others rely on Infinicept to help them transform to the new era of software-led payments. Winner of the Electronic Transaction Association Fintech Innovation in Payments Award, Infinicept is also a founding member of the Embedded Payments Bill of Rights (EPBOR). Some embedded financial services have been around for a while, like airline credit cards, car rental insurance, and payment plans for high-priced items.

Examples of embedded payments in action

Infinicept’s Payment Operations Platform (PayOps) allows companies to achieve the benefits of embedded payments without any trade-offs to maintain ownership of the payments product. Infinicept’s newest solution for monetizing payments, Launchpay, enables customers to add payments to their business quickly without any upfront costs or development work. Infinicept’s Payment Operations Platform (PayOps) allows companies to achieve the benefits of embedded payments without any trade-offs to maintain ownership of the payments product. Standing out in today’s competitive marketplace requires a digital payments strategy. With an embedded payment solution, there is no need for standalone systems for each payment type.

It’s offered when and where people need it, with no need for a separate engagement with an insurance company or agent—and sometimes with multiple competitive options. Effective embedded finance solutions meet the customer where they are with a financial option they need, whether that be a loan, payment program, insurance plan, or easy way to make a payment. Embedded payment solutions are easy to integrate and it cuts down costs by reducing the number of third-party solutions and custom integrations you need to run your e-commerce business. Embedded payment improves the buying experience for B2B and B2C transactions by significantly minimizing checkout frictions. This is achieved by getting rid of time-consuming, multi-step processes that come with using third-party sites.

Banking-as-a-Service

Embedded payment solutions eliminate friction in the way that policyholder payouts are made. P&C insurers can initiate single or mass disbursements in real-time, or schedule them for later, with just a few clicks of the mouse from within their Guidewire system. And directly integrating a payment solution with Guidewire means that payments can be reconciled in real-time, eliminating the need to rekey data or manage multiple spreadsheets.

For ages, companies have either had their employees use personal cards for business expenses or provided them with a company credit card from their bank. There are several disadvantages to both options, such as employees fronting business expenses from embedded payment solution their personal accounts or being given a corporate card that could easily be used to purchase non-business items. In both examples, embedded banking is designed to increase platform loyalty through a convenient user experience and special rewards.

Better User Experience

Out of all the embedded commerce software solutions, payments are the most in demand. Around 83% of businesses want to offer integrated payment solutions within the next five years. Registering to receive electronic payments can overwhelm some policyholders, standing in the way of electronic payments adoption.