Aite-Novarica Group and Nium Share Insights on Embedded Payment Experiences

If the world of payments has taught us “one thing,” it’s that “keeping up with the changes holds the power to keep both customers and business partners satisfied,” according to an update from Nium.

Nium writes in a blog post that as more firms are exploring the potential of integrating financial services into their internal (suppliers) and external (customer) payment journeys, the world of embedded finance is “taking shape as a high-priority solution to achieve competitive standing in a highly-globalized economy.”

Nium has taken a deep dive into the world of embedded payments, with the release of their new whitepaper prepared with assistance from the Aite-Novarica Group. The paper explores the opportunities and challenges attached so businesses may begin investing in the appropriate solutions “without delay.”

As noted in the update, this urgency is further “supported by market trends” estimating that embedded payments will generate more than 60% of the total value of embedded finance (US$141 billion) by 2025.

As explained in the blog post, B2B and B2C segments are “experiencing a shift towards accelerating payments, improving transparency, and exploring new ways to increase financial growth- all objectives that are pushing embedded payments on the forefront of tools helping businesses meet targets.”

As mentioned in the update, businesses are facing increasing pressure to “thrive in difficult economic times.” And their whitepaper is “exploring the value-focused opportunities in the payments space” with focus on:

  • Digital transformation: Integrating financial services into customer journeys has become less daunting as an initiative due to the ease of APIs supporting open finance. Removing the need for expensive, time-intensive bespoke implementation projects, a few lines of code can now deliver a measurable impact to accelerate financial growth of enterprises.
  • Payments-as-a-Service (PaaS): Sometimes scaling your business requires thinking outside the box. Consequently, businesses are looking at banks and financial institutions to provide Payments-as-a-Service, or simply put- the provision of payment services to nonbanks using an existing licensed financial institution’s secure and regulated infrastructure.
  • Enhancing business relationships: Solving pain points for business partners associated with slow, hard to track, and stressful payments are a clear indicator of your commitment to not only meeting your goals, but helping your partners crush theirs as well. Embedded payments provide the foundation for faster account-to-account settlement, removes complexities from transactions, alongside nurturing trust. This way both parties can focus on more mission-critical tasks, and fewer cumbersome payment follow ups to initiate and resolve.
  • Happier customers: The biggest results in the business world come from delighted customers, and delighted customers are usually the result of streamlined customer journeys. Evaluating how to impact your buyers positively, making the purchasing process easier, and taking away the guesswork from transactions is a reliable way to stand out from competitors, and foster loyalty amongst your target market. Therefore, customer relationships and embedded finance share a close connection; a frictionless buying experience matters more than ever before in today’s globalization.

As noted in the update:

“With embedded finance applications such as Uber and Lyft doubling down on spectacular checkout experiences, and ecommerce giants such as Amazon extending convenience to customer installment plans, the world of payments is going through profound changes at a swift pace. In order to beat the race for revenue, it is important to first understand the key players, motives, and incentives to win.”

As covered, Nium is a B2B financial services technology platform that connects businesses to the world’s payment infrastructure “with a single API.”

Nium’s modular platform “removes the complexity from global payments and allows banks, payment providers, travel companies, and other businesses to embed financial services, including technologies for pay-outs, pay-ins, card issuance, and banking-as-a-service, in weeks, not months.”

For more details on this update including the whitepaper, check here.

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