A new report from OpenPayd shows embedded payments to become the most popular form of embedded finance. 22% of companies surveyed already have embedded payment products in development
Embedded payments services are expected to generate 277.46 billion Euro of revenue in Europe over the next five years
London, UK – Tuesday 14th 2021 – Most European brands looking to join the embedded finance boom will do so via an embedded payments offering, according to new data from OpenPayd, a leading global payments and banking-as-a-service platform. Nearly all companies surveyed (96%) said they were planning to offer embedded payments to customers in the next five years or are seriously thinking about doing so, edging out embedded banking (94%), short-term lending (69%) and embedded insurance (69%).
As revealed in a report from OpenPayd, 73% of European brands plan on launching embedded financial services within the next two years and the embedded payments will be the mechanism of choice. In total, embedded payments services are expected to generate 277.46 billion Euro of revenue in Europe over the next five years. Brands are already investing heavily in embedded payments with almost a quarter (22%) having embedded payments in development and three quarters expecting to take products to market within the next two years.
This research on embedded payments reveals some detail about implementation too, with businesses pinpointing one key success factor in rolling out an embedded payments offering – curating customers’ journeys. According to the brands surveyed, the three most appealing aspects of embedded finance are: retaining the front-end customer experience (85%), increasing the number of customers touchpoints with their brand (84%) and offering mobile wallet or current account options to customers (79%).
“Embedded payments deliver the convenience consumers expect by seamlessly fitting into the checkout process. Merchants are using embedded payments to transform what was a strictly functional payment process into a personalised, intuitive experience,” said Iana Dimitrova, Chief Executive at OpenPayd.
“What will drive this change will be the collaboration between those brands that want to provide embedded payment solutions and the technology companies that can help build them. The market is quickly being established and we’re already seeing the appetite from businesses and consumers – the time is now for brands to leverage embedded payments.”
The full report, Embedded finance surge to net €720bn for European brands by 2026 can be downloaded here.