Global Payment Innovation Trends 2023: Virtual Cards,

Read more about the benefits of becoming a payfac or using a payfac-as-a-service provider, like Stripe. Although growth looks strong for enablers overall, the supply of new enablers could far outstrip demand. Goldman Sachs has taken strategic bets across the value chain, including cementing itself as the banking partner for Apple Card and a partner for Stripe Treasury, while also fielding its own distribution through Marcus and MarcusPay.

embedded payments trends

As of July 2022, close to three-quarters of firms globally using real-time payment systems regarded their capabilities as highly important. In the U.S., instant payments are expected to see a double-digit CAGR between 2022 and 2026, with more than half of surveyed financial professionals identifying improved customer and vendor experience as the main benefit of the instant payment system. SAP Fioneer, a global provider of financial services software solutions and platforms, has partnered with Mastercard to enhance its embedded financial services. Bain Capital is one of the world’s leading private investment firms with approximately $160 billion in assets under management.

SaaS payments: Everything SaaS businesses need to know

In the Netherlands, iDEAL is the most popular online payment method, more popular than CNP card payments. With mobile penetration rising worldwide, mobile payment methods are bound to conquer e-commerce, POS and remittance markets, especially in those regions where a large segment of the population is unbanked. Small and medium businesses (SMB) can accept payments directly from the client’s smartphone through near-field communication technology (NFC). Discover Global Network forecasts that the tap to phone market will grow to $76.3 billion at a 23.4 percent CAGR from 2021 to 2025. SoftPOS (Software Point of Sale) transforms smartphones into payment terminals and all Android (Google Pay) and Apple i-phones i(Apple Pay) are NFC enabled.

For retailers that really want to stand out and attract new customers, particularly Gen-Z customers, they might consider adding an element of social responsibility and sustainability into their loyalty credit card integration. Providing investment banking solutions, including mergers and acquisitions, capital raising and risk management, for a broad range of corporations, institutions and governments. For instance, e-commerce companies may offer customers the ability to purchase product insurance at the checkout, or ride-hailing apps may offer drivers the ability to purchase insurance coverage for their cars through the app.

Embedded Finance Will Reach a $7T Value Globally in the Next 10 Years

One way would be to move up the value chain and offer enabling services, as JPMorgan Chase did when buying WePay, or to procure stakes in platforms. The sweet spot is likely a combination of all, depending on the vertical sector at play and the products in scope. SMBs, which represent 57% of B2B card volume, will be significant adopters as embedded penetration rises from 5% in 2021 to 15% in 2026.

  • Now, that might be a bit of an exaggeration considering the complexity of managing corporate finances compared to your personal spending—but there’s certainly room for improvement.
  • In the US, the embedded lending industry is predicted to grow at a CAGR of 27.5% in the coming years to top $200 million by 2029.
  • For B2B embedded card payments, as with consumer payments, we expect enabler take rates to face some pressure over the next few years.
  • Thus, it is very important for a company to comprehend the patterns of the market movements in order to strategize better.
  • Through leveraging existing platforms and infrastructure, your business can launch financial services more quickly, allowing you to take advantage of new market opportunities.

For instance, contactless and mobile payments should be on brands’ radars as they consider launching or revamping their loyalty card offering. Pat Phelan, Managing Director UK&I at GoCardless, notes, “Technologies such as digital wallets, virtual cards and embedded finance are already replacing cards.” This type of embedded finance refers specifically to the integration of insurance services and products into non-insurance products and services, such as mobile apps, social media platforms, and e-commerce websites. Instead, traditional institutions should view embedded finance as an opportunity to reinvent their core business, build new growth engines, and offer more interoperable products and services.

Short Description About Embedded Finance Market:

In the US, the total value of BNPL loans grew from $2 billion to $24.2 billion in just two years. According to Fortune Business Insight, the global BNPL market is projected to grow to $90.51 billion by 2029, at a CAGR of 21.7%. In verticals as far-flung as logistics, construction and retail, payments are embedded into the mix more deeply than ever before. We are a leader in investment management, dedicating to creating a strategic advantage for institutions by connecting clients with J.P. Young fintechs that find it difficult to raise their next round of capital may suddenly find themselves thinking about a sale, with larger peers waiting in the wings to snap up talent, technology and intellectual property. Deals are likely to crop up across the payments landscape, among big and small players alike, and won’t necessarily lead to consolidation because some large companies may be on the cusp of divestitures too.

Enablers will move beyond payments and debt into new value-added services, including insurance, tax, and payroll. Regulation technology and compliance functionality could also become embedded in the short to medium term. Embedded finance, as it’s known, is where technology is used to integrate traditional financial transactions (like payments or credit) into other processes. Extend, the digital payment infrastructure for financial institutions to enable modern card experiences. Up until now, accessing the payment technology needed to embed features would require lengthy vendor-onboarding processes, addressing compliance concerns and navigating archaic technology of legacy infrastructure.

Key Reasons to Purchase:

One of the starkest illustrations of this is the chronic and ever-growing slow payments problem, which keeps many businesses waiting weeks or months to be paid. Embedded finance will have the salubrious effect of moving B2B transactions well beyond the confines of the paper check and the paper invoice. PYMNTS found that embedded payments trends more than 80% of banks offer clients the ability to use their own enterprise resource planning (ERP) systems to access accounts and make payments to suppliers or vendors — or plan to offer it. That would streamline the interactions up and down supply chains where checks still account for more than 50% of B2B payments.

embedded payments trends

Buy now-pay later will experience growing pains this year, as the industry faces shopping shifts, debt-saddled consumers and potential regulation. “In 2023, in the U.S., real-time payments will start becoming real,” said Sanjay Gupta, who heads the biller segment at payments company ACI Worldwide. Now, U.S. companies, including ACI, are ready to make use of real-time payments too, Gupta said in an interview last week.


Risk is likely to remain a constraint on growth, however, as products that require case-by-case assessment, in-person touchpoints, or regulatory waiting periods, such as commercial real estate financing, are less susceptible to end-to-end digitization. Fintechs are leading, with PayPal Credit, Afterpay, Affirm, Klarna, Zip Pay, Quadpay, Uplift, Perpay, Sezzle, Zebit, and Splitit competing for the biggest share. Pioneer AfterPay offers its clients the possibility to add a virtual AfterPay card to their digital wallet. By simply tapping their smartphone at the POS terminal, shoppers take their product home and pay over the course of 6 weeks with no interest or fees, just as they would online.

embedded payments trends

Now, that might be a bit of an exaggeration considering the complexity of managing corporate finances compared to your personal spending—but there’s certainly room for improvement. Embedded Finance market report focuses on Supply-Demand Scenario, Key Raw Material Analysis, SWOT Analysis. It delivers an unbiased evaluation of the market’s performance, highlighting the latest industry advancements and innovative practices. Dublin, June 08, (GLOBE NEWSWIRE) — The “Global Payment Innovation Trends 2023” report has been added to’s offering. Installments-as-a-service platform provider Splitit has secured an investment of $50 million from private equity firm Motive Partners. Businesses must transition from ESG ideology to practice, producing true, quantifiable and material impacts within their

NMI’s Payment Playbook: How Embedded Finance Is Reshaping Financial Solutions

What we do know is, that it is crucial for decision-makers to stay updated about trends and business opportunities in growing markets around the world. Some trends may represent exciting opportunities, while others may represent a threat in an increasingly competitive digital payments landscape. J.P. Morgan is a global leader in financial services, offering solutions to the world’s most important corporations, governments and institutions in more than 100 countries. As announced in early 2018, JPMorgan Chase will deploy $1.75 billion in philanthropic capital around the world by 2023. We also lead volunteer service activities for employees in local communities by utilizing our many resources, including those that stem from access to capital, economies of scale, global reach and expertise.

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