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Embedded Payment is Here: How is Payment Landscape Changing?
As Europe moves towards an embedded payment system, customers expect payment services that work seamlessly in real-time.
FREMONT, CA: The European payments landscape is witnessing a wave of innovation, driven by technology and customers' desire for on-demand payment solutions. As a result, business leaders are challenged with the need to roll out innovative payment solutions. With digital transformation taking centre stage, and customer demands changing, the way people make payments is evolving faster. Payments service providers are working to integrate new technologies while balancing with the rising customer demands. The result is a dramatic change in the number of payment options and design of payments services, and this change further influences the solution deployment, and application. Here enters the embedded payment system.
Digitalisation drives expectations for fast, frictionless, and borderless payments that are embedded in transaction chains, be it for retail purchases, or any other business transactions. As a result, adaptive payments now support embedded payment experience that enables customers to complete the payment flow right on the website or brand app. This improves the customer experience and also improves conversion rates. It is said that the 2020s will bring embedded payments infrastructure to the forefront in Europe, with massive innovation and new revenue streams for businesses.
Embedded payment gives customers the seamless appearance of staying on brand sites while they pay. Instead of being redirected to a different URL to check out, shoppers can securely provide their payment information, reducing friction in the process. Also, embedded payments are customisable so that brands can customise the form with their colours, fonts, and logo. The Internet of Things is creating opportunities to integrate payments into European businesses’ ecosystems. This suggests that mobility and smart homes are the two most promising factors driving the adoption of the embedded payment system in Europe. Over the next decade, average annual embedded payments in Europe could increase from around 30 per person to more than 200.
Meanwhile, digitally integrated smart homes are enabling consumers to take advantage of numerous payment options. Embedded payments are the clearest demonstration of the shift away from payments as a separate financial-services function toward payments as a core element of a business platform or a service. In the coming years, customer experience will be at the heart of the evolution of the payments. So, businesses will have to harness new technologies and digital innovation to make the payment experience more convenient.
See also: Top Payment Solution Companies in APAC