Business Payments Blog

As gaming and sports betting continues to rise in popularity, embedded finance solutions have the potential to make a major impact on casinos and sportsbooks.

With consumers rethinking and reducing how much they spend on products; consumer brands will need to remain competitive and not just when it comes to price. To retain and win consumer loyalty, brands will need to get creative with their offerings.

At its core, embedded finance creates a payment experience that allows customers to complete the transaction without the hassle of entering any payment credentials. This Banking-as-a-Service (BaaS) model allows non-financial brands to integrate financial services via open APIs in a way that embeds payments deeper into their business’ infrastructure.

Outside of the seamless payment experience itself, allowing customers to automatically reload funds onto a card or payment account linked to an app creates a cohesive branded interaction. Enabling consumers to simply reload funds onto a card or payment account to continue their in-app experience gives customers exactly what they want: quick, frictionless payment experiences.

By embedding financial tools into the core buying experience, the most successful digital brands have figured out how to remove friction and create a seamless buying journey for the customer. They’ve created the type of experience that keeps customers coming back to purchase again and telling their friends about the ease and simplicity of the buying process.

Nurturing customer loyalty that drives repeat business is a lot like a successful playbook. Successful play calling requires building off what drives wins — repeatedly. Driving customer loyalty takes a similar approach, but with a few key pieces in your end-game strategy: Encouraging more spend, more often from repeat customers.

In September 2020, Alex Lazarow, a venture capitalist and Forbes senior contributor, wrote that “one of the most transformative trends in fintech taking shape today is embedded finance.” More than a year later, the current market value of the embedded finance market is $43 billion — and is anticipated to grow by more than $95 billion to the tune of $138 billion by 2026.