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Insights and Expertise

How embedded payments

are changing the

financial landscape

By Vijay Sondhi used an embedded payment solution.
NMI The shift towards digital, embedded payments solutions
igital payments are everywhere. Whether it's is driving industry innovation by:
hailing a ride, ordering food from an app, • Offering more choice and flexibility
paying with a smartwatch at a self-checkout
D or buying tickets on the computer, online and • Incorporating payment technology into software
applications
in-app payments are the new normal.
• Facilitating real-time transactions
Last year, more than 90 percent of consumers made a • Collecting deep, omnichannel data (including
digital payment (see https://bit.ly/3YHJYje), representing consumer insights and business intelligence)
a massive shift in consumer preferences. This new type
of payment has been saturating the landscape for years, • Combating fraud with built-in, AI safeguards
slowly replacing traditional cash and checks.
These solutions make payments more convenient,
Now, as Gen Z and millennial consumers gain market accessible and seamless. They make it easier for customers
share and move away from older payment methods in to pay, for businesses to get paid, and for software platforms
favor of fast, convenient virtual solutions, the need for and payment providers to generate new revenue streams.
seamless payment experiences will continue to grow.
The four strategic benefits of embedded payments
This is where embedded payments come into play (see
https://bit.ly/4cmSXcR). Embedded payments offer everyone in the payments
chain—from small businesses to software platforms to
Embedded payments make it easier to compete by enabling payment providers—a strategic leg up. They make it easier
businesses to streamline the payment process. With this to meet evolving customer expectations while positioning
technology, payment professionals can offer merchants businesses at the forefront of innovation.
more choice and flexibility over how they take payments, 1. Competitive advantage
from in-app purchases to recurring subscriptions to SaaS Expanding payment options with embedded solutions
platform payments and beyond.
helps brands stand out in an increasingly saturated
market. As younger, tech-savvy generations gain
Over time, this will not only help merchants stand out from buying power, digital payments will become table
the competition, but it will also solidify your business as a stakes. After all, why would consumers carry cash if
payment provider they can turn to for leading-edge digital they could simply tap their watch or phone to pay?
payment solutions.
Offering digital-first payment options enables
No matter what the digital payments trend looks like for businesses to capture a greater share of wallet while
you, one thing is certain—almost everyone you know will ensuring long-term growth and profitability. The
make a digital payment this year. Are your merchants market will only become more digitized; now is the
ready?
best time for businesses to reevaluate how they take
Heads up: embedded payments payments to set themselves up for future success.
are changing finance 2. Higher sales
Embedded payments and, by extension, embedded Providing more ways to pay makes it easier for
finance refer to payment solutions integrated into digital customers to buy what they want, no matter where
platforms. That includes buying dinner through an app, or how they choose to shop. Do your customers want
paying an invoice via SMS, sending money to a friend to use digital wallets? Pay over time with buy now,
with Venmo or paying a medical bill through a hospital's pay later (BNPL)? Eliminate the hassle of recurring
SaaS platform. payments by opting in to subscription services?

If you've ever paid for something digitally (including Embedded payments give businesses the tools to
through a self-checkout kiosk at the supermarket), you've capture sales in more places while reducing the risk of
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