Feb 21, 2023

Embedded Finance Enhances Fintech Experience

A recent study conducted by Decta has shed light on the importance of embedded finance features in the current fintech world. With digital payments and online shopping becoming increasingly popular, the study has revealed the key drivers for a frictionless customer experience.

Embedded finance is a form of software distribution that allows financial services to be integrated into the existing products of financial infrastructure providers. Offering banking, lending, insurance, payments and branded credit cards, embedded finance has become a key feature for a satisfying shopping experience.

The study revealed that quick payments and the availability of a preferred payment option are the most important elements for a successful online buying experience. In fact, 49% of the respondents reported that they would cease shopping if they encountered issues with the checkout process.

In addition, personalized offers were also highly valued by customers, with 54% of Americans expressing their approval. Generation X participants were the most satisfied with the offers they received, whilst Gen-Z and Baby Boomer participants gave the offers lower ratings.

Other embedded finance features such as loyalty rewards, frictionless payments and same-page checkouts were also highly favored by the respondents.

Crypto companies have started to explore the possibilities of embedded finance, with crypto-based credit cards and loans being some of the most popular offerings. The study has given crypto companies insight into customer targeting and acquisition, with loyalty rewards and blockchain being used to help mainstream firms incorporate these services.

Institutional investment in the cryptocurrency space has also been on the rise, with some of the biggest fortune 500 companies and traditional hedge funds investing in crypto. Despite this, there is still a long way to go before crypto becomes a mainstream payment option. By taking cues from the mainstream and implementing embedded finance features with crypto-linked products, crypto companies can offer a better customer experience.

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