ConnectPay is an enabler of Embedded Finance, offering financial solutions with built-in compliance for online businesses, mostly focusing on marketplaces and platforms. As an all-in-one financial services platform, we give our clients the ability to choose financial modules tailored to their specific operational payment needs, eliminating the necessity to have multiple financial solutions providers. Through one API, clients gain access to fast, omnichannel solutions, including multicurrency accounts, SEPA and SWIFT payments, currency exchange, and white-label cards.
Our target group is quite broad and includes diverse e-businesses that could benefit from our offer of integrated financial solutions rather than scattered products. Specifically, we focus on B2B2B and B2B2C online businesses, platforms, and marketplaces. These include crowdfunding platforms, retail businesses, loyalty programmes, neobanks, and fintechs. We also cater to sports clubs with dedicated fan bases, like football and basketball clubs, who use digital platforms to improve fan engagement and streamline transactions during events.
Embedded Finance can benefit any business that engages in frequent transactions and therefore requires access to reliable and streamlined financial processes. For instance, online B2B2B and B2B2C platforms can use integrated payment solutions to simplify transactions between vendors and buyers, while crowdfunding platforms can use embedded financial tools to efficiently manage contributions and the distribution of funds.
Embedded Finance can also help solve problems related to traditional banking limitations. Neobanks and fintech companies, for example, can utilise Embedded Finance to offer tailored financial products that traditional banks may not provide, such as microloans or specialised insurance products.
In all cases, Embedded Finance can help ensure that businesses adhere to strict compliance regulations while providing a seamless financial experience for their users. When financial services come with built-in compliance, businesses can rest assured that compliance is being taken care of for them, allowing them to focus on what they do best, scaling their business and streamlining their operations.
Embedded Finance can improve user engagement and overall experience across a wide range of industries. A good example is one of the most recent cases we worked on with BeMyBond, a bond crowdfunding platform that aims to make bond investing accessible and straightforward.
Their main challenge was ensuring smooth and compliant payment flows between investors and the issuer while providing a unified transaction experience for users. By integrating our solution with built-in compliance and a single set of detailed APIs, the platform simplified the customer onboarding process to 8 seconds, eliminating any unnecessary steps. As a result, 406 new customers were onboarded during the first couple of days of platform launch, each receiving IBAN accounts. Additionally, the company can now offer tailored solutions directly to end customers.
Another practical example could be our integration with Softloans, an embedded lending solution that businesses can integrate into their own platforms to offer revenue-based loans to their merchants. To allow their lending solution to be easily embedded into other businesses’ platforms, Softloans leveraged Embedded Finance to facilitate seamless access to merchant accounts, balance notifications, and streamlined payment processes. To add, because our EF solutions have built-in compliance, the company can reduce the risk of bad debts and improve operational efficiency, too.
Besides our cases, more examples can be found in non-financial industries as well. In the sports sector, for instance, digital wallets, like the one offered by the Minnesota Gophers, are improving fan experiences by offering convenient platforms for receiving team news, tracking stats and scores, and purchasing tickets and merchandise. The ‘F1 Paddock Club’ digital wallet takes this innovation a step further, allowing fans to collect points for their interactions and redeem them for merchandise and VIP experiences.
The food and beverage industry has used Embedded Finance to offer hyper-personalised loyalty programs. Starbucks, for example, has integrated a digital wallet into its mobile app, offering features like easy payments, balance reloads, and a rewards programme, all accessible in an easy-to-use interface.
Embedded Finance is also a major component of the gig economy. Airbnb, for example, has streamlined its financial interactions with hosts by incorporating a direct payout system into its platform. This allows hosts to receive earnings either directly into their bank accounts or through a chosen payout method.
This editorial piece was first published in The Paypers' Embedded Finance and Banking-as-a-Service Report 2024, which is the latest comprehensive market overview and analysis focusing on the key players and products within the Embedded Finance and BaaS ecosystem.
About Marius Galdikas
Marius Galdikas is the CEO of ConnectPay. With over two decades of experience in digital product development and business growth, Galdikas specializes in leading the creation of advanced financial platforms, driving the vision of ConnectPay to be a major B2B fintech innovator in the EU. His leadership focuses on fostering strategic growth and technological excellence within the industry.
ConnectPay is an all-in-one financial platform for online businesses, offering embedded financial solutions with built-in compliance. Its modules include SEPA and SWIFT payments, multi-currency IBAN accounts, wallets, Banking-as-a-Service, and merchant services. All processes operate via a fraud prevention and compliance management ecosystem, with KYC verification and AML/CTF monitoring. ConnectPay holds an EMI license from the Bank of Lithuania, and is a member of the Eurozone monetary authority.
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