Firms are continuously enhancing their payments acceptance offerings to meet customers’ expectations for smooth online buying experiences. Embedded finance innovation has become crucial for retail platforms looking to improve customer experiences. Such offerings provide consumers with seamless access to financial services directly through a retail platform. This helps businesses deepen their relationships with current customers while adding services which will help attract new ones.
PYMNTS Intelligence data shows payment facilitators (PayFacs), independent software vendors (ISVs) and marketplaces in the retail arena are prioritizing embedded finance innovation. Even so, enhancing these features may take two to five years for many firms. The embedded finance features emerging as top priority for PayFacs, ISVs and marketplaces going forward include loyalty and rewards features and buy now, pay later (BNPL) support. Data also reveals the integration of digital wallets has become a must-have payment acceptance feature.
These are just some of the findings detailed in “How Embedded Finance Drives Retail Platform Innovation,” a PYMNTS Intelligence and Fiserv collaboration. Based on a survey of 280 executives — 40 at PayFacs, 120 at ISVs and 120 at marketplaces — this report examines the sentiments and behaviors of PayFacs, ISVs and marketplaces in the retail sector regarding embedded finance innovation. The survey was conducted between May 28 and July 20.
The report explores not only the benefits of adding and enhancing embedded finance capabilities but also the challenges. Nine charts of insightful data explore the opportunity for PayFacs, marketplaces and ISVs in enhancing their embedded finance offerings. Download the report to learn more about how innovate embedded finance capabilities can increase customer engagement and drive sales.