Your Ultimate Guide to Embedded Payments
Discover everything you need to know about embedded payments and how they can transform your platform and create new opportunities for your business.
Embedded payments are customer-centric and smart, offering platforms the ability to make payments faster and smoother and streamlining customer experiences. Embedded payments allow platforms to manage customer payments and minimise friction.
Most people use embedded finance payments without even realising – examples range from Uber to Starbucks to payment apps, people are using one-click payments in many different ways already. These payment solutions have become really accessible and easy to use. In fact, it can easily be described as the quiet payments revolution.
What are Embedded Payments?
Embedded payments give your customers the freedom to bypass the usual payment process that ask them to go through financial institutions and often complicated authentication processes by simply clicking on a single button. Embedded payments give platforms the freedom to transform their payment processes and potentially create new business opportunities and enter into new markets.
The embedded payments market has evolved considerably over the past few years and allows platforms to create payment ecosystems that help them build customer loyalty, engagement and traction. By providing platforms with the ability to embed inclusive and accessible digital transactions into their systems, embedded payments make payments frictionless and seamless.
Embedded B2B payments provide B2B platforms with the ability to pay and be paid using different touchpoints and devices. It also allows for payment platforms to create consumer-focused embedded online payment solutions.
Embedded payments make payments easy for consumers, accessible to businesses and seamless for everyone.
How embedded online payment solutions work
Embedded payments allow digital platforms to create their own ecosystems so that their customers can engage and connect across multiple touchpoints using integrated digital journeys that simplify financial transactions while creating new financial distribution models.
Platforms can use embedded finance solutions to create new revenue streams on top of their existing revenue models, drive a higher average revenue per user, and provide customers with seamless payment experiences. Platforms simply use a third-party API to connect their services to payment functionality. It’s that simple (and that complex).
Here’s what embedded payment companies achieve
With the right third-party service provider, platforms can enhance their payment solutions, create new features, add new functionalities and transform how they connect with their customers across different devices and services.
For example, UNIPaaS has developed an embedded finance solution for B2B platforms that allows you to turn your platform into a new financial growth engine. Using UNIPaaS’ embedded B2B payments, you can increase customer stickiness and lifetime value by creating a truly outstanding customer experience with minimum effort.
This fully white-labelled and powerful solution puts your brand at the forefront of your customer engagements while ensuring that you have access to seamlessly integrated financial services that transform payments. There are many embedded payment examples, but for Beelivery, UNIPaaS was the only provider that could solve all the company’s pain points. The embedded payment solution allowed the Beelivery drivers to enjoy instant payments rather than waiting for daily payment runs. It removed the risk of pay-out failures and support issues. UNIPaaS helped Beelivery continue its extraordinary growth trajectory by providing the tools needed to scale without adding to headcount and overheads.
How Embedded B2B Payments are solving some of the biggest business setbacks
B2B payment platforms stand to win immense market share if they can transform payment processes and make it easier for customers to connect, spend and stay. This is already evidenced by how the more traditional B2B payment methods, such as cheques and cash, have significantly declined in popularity and use case. In some countries, cheques have been completely discontinued.
Instead, there has been a shift towards embedded payment solutions that have evolved out of the need to create financial ecosystems that retain customers while building loyalty, engagement and traction. These embedded, real-time finance solutions open new distribution channels and opportunities, providing inclusive and accessible digital transactions that can be added to any third-party environment to create seamless and frictionless B2B payments.
4 Key benefits of embedded online payment solutions
The future isn’t complicated and time-consuming; it’s embedded and engaging. And here is a complete list of embedded payments benefits and how they solve some of the biggest problems holding businesses back from growing:
- Reducing churn while increasing revenue – embedded payments are designed to make your platform more engaging for your customers and provide you with a competitive edge. When you use a trusted third-party embedded payments service provider, you can provide intense value to your customers and expand into new markets and territories with ease. Your customers are more engaged, there is less friction for them, and they are more likely to remain loyal.
- Payments move from painful to pain-free – using embedded payments, you avoid the lengthy and often tedious payment processes that have made payments time-consuming and painful in the past. Your customers can simply pay and go. This is an intensely powerful benefit for SMEs as they often struggle with cash flow thanks to poor payments from their customers. Late payments can have an extremely negative impact on the small business and so, with an embedded payment solution, the SMEs can transform their cash flow because they’ve now made payment as simple as possible.
“We’re really excited to partner with UNIPaaS and provide our customers with embedded finance solutions. Our aim is to help our customers automate the payment process for on-time payments and an improved customer experience. SMEs are the lifeblood of the UK, representing 99% of our economy and have been traditionally underserved in terms of payment solutions. This partnership puts us ahead of the curve and enables us to meet the accelerating demand for embedded finance and Open Banking based solutions." - Paul Nagy
Chief Product Officer IRIS Software Group
- Improve pay-outs and flexibility – you can now shift how you manage your funding flows as a platform by ensuring that payments are less complex and easier to manage. Using a third-party embedded payment solution such as UNIPaaS, you can introduce flexibility and scalability within your payments while improving payment speeds and business growth.
- Own the customer experience – using UNIPaaS, you own the customer experience, increasing loyalty and lifetime value. You gain rich control over customer journeys so that your payments are frictionless and streamlined experiences. Your SME customers gain access to a unified system that gives them control over their funds.
How UNIPaaS transforms embedded payments
UNIPaaS has created a unique and accessible white label embedded finance solution that perfectly fits your platform. With UNIPaaS, your payment platform can create ecosystems that connect with your customers and deliver integrated digital journeys that simplify financial transactions.
In fact, you will also get the following benefits from UNIPaaS and our embedded online payments solution:
- The ability to transform payments while creating new financial distribution models
- New revenue streams that can rest on top of your existing revenue models
- A higher average revenue per user
- Seamless payment experiences
- Access to payments technology that’s accessible and easy to use
- Payment automation functionality and seamless payment processing
- Embedded B2B payments for your marketplace
- Multiple payment methods across cards, open banking, Apple Pay and Direct Debit
Embedded finance payments using a multi-vendor eWallet System
With the UNIPaaS multi-vendor eWallet System (MVWS), your payment platform gains access to a flexible eWallet infrastructure that uses open banking to deliver faster and more secure real-time payment experiences. It also introduces increased operational efficiencies in embedded payments management and comes with the following key capabilities:
- Embedded B2B payments with multiple payment methods that include pay-by-bank and that are all embedded within the platform user journey and brand
- Real-time payments of platform fees so the platform receives its payment immediately, in real-time. There’s no need for end-of-month calculations and for finance to manage it - easy and efficient.
- A single check-out experience that uses multi-vendor orders from various payment methods in a single check-out experience features bank transfers alongside credit cards and APMs.
- An MVWS that provides payment platforms with real-time control and a comprehensive view of your entire payment operations on one centralised dashboard. With MVWS, CFOs and finance leaders can manage balance and automate payment processes, including reconciliations and pay-outs, and you can optimise operations and support the business as it scales.
- Dynamic pay-outs that leverage UNIPaaS so your payment platform can deliver instant global pay-outs to a bank, card or digital wallet. These can be automated and dynamically scheduled through the API or the UNIPaaS system interface.
UNIPaaS is built on a flexible architecture that enables the faster implementation of fintech products and services, payments as-a-service (PaaS), banking as-a-service (BaaS), and lending as-a-service (LaaS) in one unified platform. UNIPaaS also provides the ability to rapidly add financial services so that B2B payment platforms can generate additional revenue streams and grow their businesses and is the leader in embedded payment solutions.