What Payments Have Changed and What It Means for Financial Services

The FinTech field has increased rapidly in recent years, and it will continue to do so as new markets develop that require digital financial services. The global FinTech sector is expected to reach $190 billion by 2026, according to statistics.

FinTech products and services are created and developed to integrate financial customers and providers with technology to make it easier to use, more efficient, and effective. They're also important in business-to-business technology.

We discussed why non-fintech platforms should be concerned about embedded fintech in this blog. Truly embedded fintech, in our opinion, refers to non-fintech enterprises that use contextual data to integrate financial products into the UX/UI. When done correctly, embedded financial services can increase retention and loyalty while also increasing LTVs by opening up new income sources at a low cost.

What is Embedded FinTech?

Embedded FinTech is when non-fintech products, digital assets, and processes are integrated with fintech products and services. A bank, for example, can integrate a third-party idea (a FinTech product or service) into their website or mobile application to improve the services they provide to their users/potential clients.

Offering a unique payment option that allows end-users to make purchases outside of the offering platform by bypassing regular credit and debit rails.

Even today, small-volume merchants have a tough time passing acquiring bank underwriting norms and navigating the complicated legacy process of being set up to accept payments. Companies with vast ecosystems of small merchants can monetize the payment flow between users and their consumers by becoming payment facilitators

Is Embedded FinTech Important?

Yes, embedded FinTech is important. Embedded FinTech can transform the financial ecosystem. It has the potential to change how real-time payments are handled, as well as improve consumer satisfaction and retention. Embedded FinTech can also greatly assist various platforms in providing relevant yet specific items in a well-targeted and intelligent approach.