Summary
A long article in Payments Cards & Mobile looked at what embedded payments are - and what the future has in store for them.
Infinicept defines embedded payments as any payment in a wider chain of customer interactions that becomes a seamless part of a wider customer experience. Concrete examples would include your account being debited automatically when you step out of an Uber - or a transaction that is automatically taken from a credit card when a registered customer fills up and drives away from a BP petrol station. Embedded payments typically combine more than one function on a platform, for example: account creation and payouts.
Embedded payments are gaining popularity in business-to-business environments, especially in terms of combining logistics and invoicing, as when a customer signs on delivery for a shipment, and the funds are automatically released as payment for the goods received – a digital version of the age-old cash on delivery model.
Embedded payments are said to form part of a wider movement towards embedded finance, in which customers access financial services through other (non-financial) products. Examples here include things like buying warranties at the same time as purchasing a product with a single click.
However we choose to look at embedded payments, they are expected to see rapid growth in the years ahead. Wired magazine recently predicted that embedded payments revenues will rise from $40 billion in 2021 to $126 billion by 2026 – a greater than three-fold increase in five years. To find out more, click on the link below.
Links: https://www.paymentscardsandmobile.com/embedded-payments-what-does-the-future-look-like/