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Trading Platforms Survey: Why Embedded Finance Is the Next Big Bet
Payment facilitators (PayFacs) are transforming the way we do business. Entities like independent software vendors (ISVs) and online marketplaces offer services and products, but they need additional help to receive payments. PayFacs can provide that help.
New embedded finance solutions enable the direct integration of banking and credit products into retail platforms. This integration offers the potential to generate new revenue streams. PYMNTS Intelligence data shows that ISVs and marketplaces that offer two primary types of functionality (payment acceptance and embedded financial features) are most likely to report that payment processing fees represent a larger share of the revenue they generate.
ISVs and marketplaces, like PayFacs, are increasingly recognizing the value of offering both payment acceptance and integrated financing capabilities. Key features in their innovation plans include buy now, pay later (BNPL) and loyalty and rewards programs. PYMNTS Intelligence finds significant differences between the innovation plans of PayFacs, ISVs, and marketplaces.
Here are some of the key findings explored in this edition of “Trading Platforms Survey: Why Embedded Finance Is the Next Big Bet,” A PYMNTS Intelligence And Fiserv Carat collaboration. This report explores the characteristics, sentiments, and behaviors of PayFacs, marketplaces, and ISVs around payment acceptance and integrated financing. We surveyed 280 executives (40 at PayFacs, 120 at marketplaces, and 120 at ISVs) between May 28 and July 30, 2024 to determine how they are facilitating integrated payment and lending processes for their customers.
Inside “The PayFac, ISV and Platform Commerce Report: “Why Embedded Finance is the Next Big Bet”
- Overview of the benefits of offering both payment acceptance and integrated financing
- Evolution of corporate payment offerings over the past year
- How expanding these offerings can increase revenue and market expansion for PayFacs, ISVs and marketplaces
- How PayFacs Can Help ISVs and Marketplaces Meet Regulatory Requirements, Reduce Security Risks, and Ease Operational Constraints in Payment Processing
- What integrated financing features PayFacs, ISVs and marketplaces are interested in innovating and improving?
- Innovation Calendars for PayFacs, ISVs and Marketplaces
The report explores the critical benefits of adding and improving features. The report presents nine data-driven charts that detail the opportunities for PayFacs, ISVs, and marketplaces. It also explores why market leaders should improve embedded finance offerings. Additionally, it provides insights into potential challenges to avoid. Download the report to learn more.