Cette saison de shopping des Fêtes, les acheteurs se tourneront de plus en plus en buy-now-pay-later (BNPL) dans un signe de triomphe pour la finance intégrée.
Next week is Black Friday, a day many consumers wait and save for. But saving is not the only option to make the most of the heavy discounts. Black Friday is part of a big holiday shopping season, which is increasingly funded by “buy now, pay later” (BNPL). According to Forrester data, last year, some 33% of US and 41% of UK online adults who have used BNPL as a payment option used it more during the holiday shopping season. This holiday shopping season, US shoppers are expected to channel an astonishing $18.5 billion through BNPL, almost 8% of total spend. This surge in BNPL usage isn’t just a testament to its growing popularity; it’s a clear indicator of the broader appeal of embedded finance, a trend that seamlessly integrates financial services into nonfinancial customer experiences, journeys, or platforms.
Embedded finance is not just an evolution; it’s a revolution in how we interact with financial services. It’s about bringing banking, investment, or insurance to your fingertips, regardless of what digital platform you’re on.
Consumer Demand, Tech Advancements, Regulatory Support, And Tougher Competition Drive Embedded Finance Forward
At the heart of the embedded finance revolution is a mix of consumer demand for convenience, technological advancements, regulatory support, and the competitive landscape of businesses competing for customer loyalty.
Consumers no longer view convenience as a luxury; it’s a necessity. The expectation for seamless digital experiences extends to financial interactions, whether applying for loans through car dealerships or opting for embedded insurance options during online purchases. Technological innovations in APIs, cloud computing, and artificial intelligence have made it easier to embed financial services into nonfinancial digital platforms. Meanwhile, regulatory frameworks supporting open banking have broken down traditional barriers and created an environment ripe for innovation and collaboration. And in the competitive quest for customer loyalty, businesses are discovering that embedding financial services into their platforms enhances user experience and engagement, opening new revenue streams and deepening customer relationships. Embedded finance is all around and here to stay, but how can you make the most of this opportunity?
Your Map Through The Embedded Finance Terrain
Embarking on the embedded finance journey is like navigating a dense, uncharted jungle. It requires a keen understanding of the landscape, selecting the right companions for the journey, and mastering the intricacies of the ecosystem. In our new report on embedded finance, we broke it down into a three-step process you can follow.
First, you must map the terrain by identifying which financial products or services align with your customers’ needs and your business goals. Hint: Think beyond traditional financial products such as a loan and more about wider capabilities such as cash management or identity verification. The next step is choosing your companions wisely; collaboration is the compass that will guide you through the embedded finance wilderness. Identify the most relevant customer touchpoints across a variety of journeys/scenarios and channels/interfaces. Partner with entities that share your vision and can complement your capabilities. Finally, mastering the ecosystem is about more than just survival; it’s about thriving by creating value-added services that enhance the customer experience in a natural and engaging way. Prioritize opportunities based on value and ease of adoption/integration.
Make sure to read the full report if you are a Forrester client, and schedule a guidance session or inquiry if you want to explore the topic further.
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