Transforming Marketplaces with Embedded Finance

By Walt Granville, SVP Embedded Finance, Bank & Network Operations

The impact of the pandemic on ecommerce was significant. This shift towards online shopping propelled the popularity of the already strong performing online marketplaces. Retailers and online marketplaces will need to prepare for how consumer shopping behavior might change with a probable recession on the horizon.

Additionally, with changing economic situations looming, retailers and marketplaces looking to weather the potential storm of a recession must provide customers with the tools they need to make a frictionless transaction and build loyalty in the immediate and long-term.

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.

What makes embedded payments such a powerful tool for retail marketplaces and brands is the ability to deliver friction-free customer interactions through one of the most critical aspects of a customer interaction: how they pay. But eliminating that friction is about more than just integrating payments into an app. Brands that embed payments deep into the customer journey through their own branded ecosystem have an opportunity to make the transaction fast, simple and — most importantly — invisible.

Embedded finance also presents value-added tools for businesses. Whether it be through digital banking services, digital wallets, dynamic payment accounts, P2P payments, rewards or branded card programs embedded finance solutions provide businesses a streamlined way to turn payment services into a revenue-generating tool. Another value-add of embedded payments is the ability to gather insights to optimize customer experiences while they’re interacting with your brand. These on-demand insights help businesses learn more about their customers, streamline operations and can be another way to boost spend and drive loyalty.

After all, the point of embedded finance is to simplify the payments equation. How businesses integrate that solution should be seamless for both the business and their end users. It’s important to find a partner that can manage all the capabilities and relationships in one place so businesses can focus on what matters most: delivering exceptional customer experiences.

Managing payments complexities can’t, and shouldn’t, be tackled alone. The technology and partnerships that exist today allow for greater synergies between businesses, financial services and the customers that benefit from the rise of integrated payments technology.

For brands considering which embedded finance products might be most beneficial for your buyer, how to incorporate finance tools to supplement your existing platform, or simply want to learn more about the embedded finance mechanics and choosing the best embedded finance partner, download our latest ebook, Value-Added Finance: Uniting Finance and Technology to Increase Brand Value, User Loyalty and Revenues.


About the Author: Walt Granville serves as Netspend’s Senior Vice President, Business Development. Walt leads a team of experts that are responsible for working with partners to unlock growth through payments and digital banking innovation. His Netspend partnership team has developed card programsemployer payment solutions and embedded finance offerings across multiple industries including; Technology, Gaming, Ecommerce, Lending, Fintech, Healthcare, Retail and Alternative Financial Services. An industry veteran with over 20 years of experience in the US and European financial services and payment industry, Walt has held roles managing strategic partnerships and product innovation teams for payment networks, processors, issuers and technology innovators. Prior to joining Netspend, Walt held various roles with Visa, First Data, Affinion Loyalty Group, and Monitise.