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When it comes to payments on marketplaces, the current situation often involves vendors being directed to onboard on a separate platform, leading to a poor user experience and reduced control of the marketplace. This not only detracts from the marketplace's brand, but can also result in lost revenue due to high processing fees and chargebacks. However, there's a better way to do payments - true payment embedding. This approach offers a fully integrated solution that enables everything to happen under the marketplace's roof, providing full visibility and control over transactions, while also strengthening the marketplace's brand. By harnessing payments to their own favor, marketplaces can take control of their payment processing, reduce costs, and provide a seamless user experience that strengthens customer loyalty. In this blog post, we'll explore the concept of true payment embedding, and its benefits for marketplaces, and provide a real-life example of a marketplace that implemented this approach.
True payment embedding is the concept of fully integrating payment processing into a marketplace platform. In practice, this means that vendors can manage payments directly on the platform, without being directed to an external payment processing system. This approach offers a range of benefits, including greater control, reduced complexity, improved security, and better user experience. The ability to handle everything in-house means that marketplaces can optimize their operations, gain valuable insights into customer behavior, and grow their own data assets in-house, which can be strategically leveraged for embedded finance in the future.
To elaborate, the process of true payment embedding involves the creation of an integrated payment system that allows vendors to manage all their transactions, including payouts and refunds, on the marketplace platform itself. The payment system should provide a seamless experience for vendors and customers alike, enabling them to make and receive payments without ever leaving the platform. This implementation of a complete, fully functional payment system not only appears seamless to the user, but also strengthens the marketplace's brand by providing a consistent and streamlined payment experience. In addition, by handling everything in-house, marketplaces can optimize their operations and gain valuable insights into customer behavior, growing their own data assets in-house, which can be strategically used for embedded finance.
Despite the abundance of payment solutions claiming to benefit platforms, the benefits of true payment embedding are numerous. First and foremost, it improves the user experience for both vendors and customers by keeping everything on the platform, allowing vendors to manage their payments without navigating a separate system and customers to enjoy a seamless checkout process without being directed away from the marketplace. This approach also offers greater control, allowing marketplaces to monitor and manage transactions from start to finish. Additionally, it reduces complexity by eliminating the need for vendors to manage payments across multiple platforms and improves security by processing all payments through a single, secure channel.
Another significant benefit of true payment embedding is that it helps increase the lifetime value of the marketplace's customers. By offering a better user experience, reducing complexity, and improving security, marketplaces can enhance customer loyalty and retention. This approach also provides valuable insights into customer behavior, enabling marketplaces to optimize their offerings and improve the overall customer experience.
In addition to these benefits, true payment embedding can also help marketplaces reduce costs and increase revenue. By handling payments in-house, marketplaces can eliminate the fees charged by external payment processing systems, leading to cost savings. Furthermore, marketplaces can generate revenue by charging a processing fee for each transaction, and in the future, monetize more on financing services, such as card transaction funding, resulting in an instant payment service to the supply side with very low risk. This can lead to significant revenue growth opportunities for marketplaces while also providing a valuable service to vendors.
To see the benefits of true payment embedding in action, imagine there’s a large online marketplace that is struggling with vendor onboarding and payment processing. They were using a separate payment processing system, which meant that vendors were being directed away from the platform and the marketplace was losing control over the new vendor's conversion process. This not only led to a poor user experience for vendors and customers alike but also caused frustration for the product owners who lacked the ability to control the friction in their conversion funnel.
To address these issues, the marketplace implemented true embedded payment by partnering with UNIPaaS. With UNIPaaS's fully integrated payment solution, the marketplace was able to manage payments directly on the platform, offering a better user experience and greater control over the payment process. This approach also provided valuable insights into customer behavior, allowing the marketplace to optimize its offerings and improve the overall customer experience.
As a result of implementing true payment embedding, the marketplace saw a significant improvement in its metrics. Vendor onboarding rates increased, leading to a larger network of vendors on the platform. Additionally, the marketplace saw a reduction in the time it took to process payments, as everything was handled in-house. Finally, the marketplace was able to optimize its offerings and improve the overall customer experience, leading to increased customer loyalty and retention.
Implementing true payment embedding allowed the marketplace to take control of its payment process and make it a seamless experience for their vendors and customers. By offering a more streamlined checkout process, they also made it easier for the customers to complete their purchases, leading to fewer abandoned carts and more completed sales.
By fully embedding payments, the marketplace was able to gain a unique position to immerse existing data in-house with the tangible data collected from payment activities. This led to specific insights that influenced the business and helped the marketplace optimize its offerings, improve the customer experience, and increase customer loyalty and retention. In addition to the operational benefits, having a complete view of the payment process allowed the marketplace to analyze transaction data and identify trends, preferences, and potential pain points.
Overall, implementing true payment embedding was a game-changer for the marketplace, offering significant benefits across multiple fronts. It allowed the marketplace to take full control of their payment process and offer a seamless experience for their vendors and customers. By improving customer loyalty and retention through better user experience, reducing complexity, and improving security, they were also able to increase their revenue streams. Moreover, becoming a fintech company by offering financial services has the potential to add strategic value to the marketplace's business model.
As a marketplace, embedding payment solutions into your platform can be a complex and time-consuming process that requires significant resources. But with UNIPaaS, the market leader in true payment embedding, you can implement this approach with ease. UNIPaaS provides a comprehensive suite of ready-to-use UI components that are fully white-labeled and designed to provide a seamless payment experience for your customers, allowing you to take full control of your payment process and enhance customer loyalty and retention.
To get started, the first step is to find a payment processing provider that offers a fully integrated solution that can be embedded into your platform. With UNIPaaS, you don't have to worry about finding the right payment provider, as the platform provides everything you need to implement true payment embedding.
Once you've signed up for UNIPaaS, you can start integrating its suite of UI components into your platform with the help of UNIPaaS' team of payment specialists. They'll work closely with you to ensure that the integration is seamless and meets all of your requirements. Plus, you won't have to worry about building custom payment solutions from scratch, as each of the components is designed to be effortlessly integrated into your platform.
UNIPaaS' Onboarding component streamlines the vendor registration process and incorporates all necessary Know-Your-Business (KYB) and Know-Your-Customer (KYC) requirements, so your team can concentrate on growth without being bogged down by complex registration procedures. The Pay Portal component provides customers with a detailed view of their payment options, statuses, and administrative settings, saving them time and providing a single source of truth for all payment-related information.
The Invoice component offers customers actionable insights and information throughout the lifecycle of an invoice, providing them with a clear understanding of their payment options and saving your team valuable integration time. The Notification component keeps customers informed of all payment-related activities, providing them with full transparency and visibility into their payment solution.
Finally, the Balance component offers customers a high-level, intuitive overview of their payment-related status within your platform, providing them with visibility into their balance, payable funds, pending funds, and the ability to view and adjust their payout settings. By leveraging UNIPaaS' suite of UI components, you can embed payments seamlessly into your platform and provide your customers with a hassle-free payment experience.
In summary, becoming truly embedded is critical for marketplaces looking to create a seamless user experience and stand out in a crowded market. UNIPaaS offers a range of powerful tools and features to help marketplaces achieve this status, including
Check out our success stories to see the full power of true payment embedding.
By partnering with UNIPaaS, marketplaces can unlock the full potential of their platform and provide their users with a superior, fully-integrated experience.
UNIPaaS Financial Services Limited is regulated by the Financial Conduct Authority (FCA) as an Authorised Payment Institution (No. 929994). UNIPaaS is certified as PCI DSS service provider Level 1.
