Embedded finance seems like a no-brainer for most companies; however, integrating the right products for certain company goals can be tricky to navigate. We explore some of the options and their benefits.
Many companies are looking for ways to increase revenue and customer loyalty simultaneously by dipping into embedded finance options. And while most companies recognize the need, selecting the right products to offer is the tricky part.
Bridging the gap between brands & finance
Retail embedded finance includes lending, insurance, digital wallets, integrated payments, and debit cards. Many companies have already integrated embedded finance, such as Walmart, Klarna and Costco with their closed-loop credit cards that function like bank-issued cards; but this is just the tip of the iceberg, as they are still using physical cards.
With embedded financial services, companies can offer financial services throughout the digital customer experience and prevent customers from navigating away from their website to complete a transaction.
Various embedded finance products
Examples of embedded finance products that companies can launch include the following:
With more customer data and better financial relationships with your customers, companies can use embedded finance to acquire, retain, and increase customer lifetime value while generating revenue in new ways.
Embedded finance and customer loyalty
Embedded finance is also ideal for loyalty programs and increasing customer loyalty. Plastic loyalty cards are too easily lost or forgotten; digital loyalty programs embedded directly allows customers to make use of rewards instantly. Push notifications can be used to engage customers with further offers, rewards, and new products.
Loyalty programs also incentive further purchases and help generate additional revenue streams via the interchange fee earned with every card tap.
Finally, embedded finance helps a company improve overall customer stickiness; once they find a seamless, user-friendly experience, customers are more likely to be loyal to that brand.
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