There’s no question that in recent years we’ve seen a significant acceleration in digital transformation, particularly when it comes to artificial intelligence (AI) and blockchain. Blockchain is having a huge impact on how we move and manage value, but in many cases – such as crypto – for that to have any real impact on the everyday consumer, there needs to be fiat on-ramp/off-ramp services attached. That’s where Embedded Payments come in, helping those services bridge that gap through a seamless user experience. Speaking more broadly, AI and blockchain are both creating thousands of new businesses each year, leading to entirely new industries. For these industries to grow and succeed, they need to monetise their services, and Embedded Finance is the most powerful way for them to do that.
One example that stands out is cross-border payments. Blockchain makes global payments faster and cheaper, and stablecoins provide these benefits without crypto price volatility. For this, an Embedded Finance provider with global reach is needed to convert fiat to stablecoin and back to fiat. AI enhances compliance and fraud monitoring, ensuring funds are secure by helping teams perform thorough checks. Technological advancements often focus on ‘faster’ and ‘slicker,’ but in this case, they also mean ‘safer’ and ‘more secure’.
Today, it’s larger companies that can benefit most from Embedded Finance. The larger your business operations and revenues, the more costly payments and banking can become.
The challenge for larger businesses adopting new technologies often lies in their lack of agility and legacy infrastructure. That is why those capturing the Embedded Finance opportunity today are digital-first, technology-focused brands. In the coming years, if your business doesn’t fit this description, it’s unlikely that it will be around for too long.
Embedded Finance drives digital business growth when aligned with company vision and integrated seamlessly rather than as a standalone service. Understanding customer insights and leveraging existing data are crucial for enhancing user experiences and identifying growth opportunities. Success hinges on clear objectives, adequate talent, tech resources, regulatory compliance, and effective market strategies. Partnering with the right experts, like OpenPayd, ensures robust support throughout the process.
Financial services is a highly regulated industry – and so it should be. When it comes to handling people’s money there aren’t any shortcuts to be taken. Without the right expertise, governance, and infrastructure, you simply cannot adopt Embedded Finance.
At OpenPayd we talk about our infrastructure in two parts: technology and licencing. Having a strong approach to compliance and regulation is where businesses can build their competitive edge.
OpenPayd commissioned a study which examined the attitudes towards Embedded Finance from businesses in a variety of industries. Retaining the front-end customer experience was a benefit that most respondents were interested in, with 85% classifying it as very appealing or appealing. Increasing the number of customer touch points with the brand was another factor that business leaders clearly want, with 84% of respondents deeming it either very appealing or appealing.
Then there’s revenue. Businesses can completely transform the operational costs and add new revenue streams, all whilst providing a better customer experience. It really is a no-brainer.
OpenPayd is the leading provider of infrastructure for embedded financial services. Today we proudly serve more than 450 businesses who trust us to move and manage billions of euros every single month. With a single API, these businesses gain access to a full suite of financial services infrastructure that’s ready to be embedded in their own customer experience. This technology, alongside our licencing infrastructure, will enable the next generation of digital businesses to launch their own financial services and ultimately power the growth of the digital economy.
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.
Michael Treacy is a seasoned fintech expert with over a decade of experience driving growth and innovation in the payments sector. As the Head of Marketing at OpenPayd, he leads a team dedicated on go-to-market, commercial growth and brand awareness.
OpenPayd builds Embedded Finance and Banking-as-a-Service infrastructure that powers business growth. With OpenPayd’s financial services infrastructure, innovative companies can build new products, streamline their operations and manage their payments on a global scale.
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