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FAQs About Embedded Finance
What is embedded finance?
Picture your favorite app or software platform–one that you use regularly. Now, envision a virtual bank conveniently embedded in it. This virtual bank is hosted by the software provider and is seamlessly integrated into the user experience. You can set up a payment plan, buy insurance, or explore other financing options, all without having to exit the software. You can see how valuable this feature can be–you gain access to new features and capabilities, all without disrupting your experience as an end-user.
Embedded finance is a value-added program that brings financial tools and services inside nonfinancial software offerings. It’s the culmination of two trends:
- End users looking for the convenience of accessing financial tools inside their favorite daily apps and software.
- Changes in how customers and businesses view relationships with each other and with financial services.
This isn’t just a future development: embedded finance already has a significant footprint in business. Everything from travel insurance to financing options like Buy Now, Pay Later qualify. Bain & Company estimated that financial transactions using embedded finance will exceed $7 trillion by 2026. This would account for over 10% of total U.S. transaction value.
Why is embedded finance the next big thing?
Embedded finance is evolving into a game-changer for businesses looking to improve their customer experience. It opens doors to new possibilities for financial innovation and customized solutions for merchants and customers alike. Businesses that effectively utilize embedded finance can offer a more seamless and convenient customer journey than the competition. It offers the potential for better relationships, more sales, and more revenue, all without reducing the ‘stickiness’ of your customer journey.
How can embedded finance benefit B2B businesses?
Although embedded finance is commonly associated with B2C, it has a very diverse catalog of use cases that can also apply to B2B. There are a multitude of ways that B2B businesses can capitalize on embedded finance:
- Customer Experience: Build stronger relationships and improve customer loyalty with customizable payment options and flexible financing.
- Revenue Diversification: Earn additional revenue by processing payments and facilitating financing options.
- Data & Reporting: Collect additional financial data and extract insights about customer behavior with elevated reporting capabilities.
- Automated Payments: Bring payment automation into your account receivable process and make invoicing a thing of the past.
How can B2B businesses assess the feasibility of an embedded finance program?
Determining the feasibility of an embedded finance program is an important first step for any B2B organization looking to dive in. As with any large business decision, an analytical and data-driven approach is the best path forward. Here are some questions we frequently pose to our merchants that are wondering if embedded finance is a good solution for their B2B business:
- Are there specific problems, inefficiencies, or disruptions at the payment stage in your customer journey?
- Are you willing to modify your accounts receivable process to accommodate embedded finance?
- Which embedded finance features and offerings will bring the most benefits to your clients?
- What level of ROI (new revenue and cost savings) is needed to at least break even?
- Is there a subset of clients that would be receptive to a small embedded finance pilot program before a client-wide rollout?
What are some successful examples of embedded finance in B2B?
Embedded finance is more prevalent in the B2B space than many people realize. Here are some examples of effective B2B applications:
- Cat Financial: Caterpillar provides financing solutions and extended protection plans to dealers and end-users for their machinery, engines, and other related offerings.
- Verizon Business Protection Services: Verizon offers protection plans and services for its business clients in the form of monthly coverage payments.
- Faire Net 60: Faire, a leading clothing wholesaler, offers multiple payment options, including net 60, which allows retailers to purchase inventory now and pay for it 60 days later.
There are, of course, countless more examples of B2B businesses elevating their accounts receivable and customer experience with embedded finance. We encourage you to keep an eye out for more instances of embedded finance in your day-to-day life–it’s present in more places than you might think!
A Cutting-Edge Approach to B2B Embedded Finance
Now that we set the stage for embedded finance, let’s put it into practice. Imagine this: the accounts receivable process for your transactions runs smoothly without having multiple logins. You no longer need to remember five different passwords for each software interface. Invoices vanish into thin air, replaced by automated payments. This isn’t the stuff of futuristic daydreams–it’s the reality that the team at Evolve Payment brings to life with our cutting-edge approach to embedded accounts receivable processes. Let’s ditch the clunky payment silos and explore how Evolve is paving the way for a seamless, streamlined financial future for B2B businesses.
Implementing Embedded Finance the Right Way
For B2B companies, this presents a game-changer for streamlining operations, improving customer experience, and boosting revenue. Evolve Payment, a leading payment processing provider understands this shift and is at the forefront of revolutionizing B2B payments through an innovative approach to embedded environments. We’re not just offering payment solutions, but building strategic partnerships with businesses to create custom-tailored financial ecosystems.
What Sets Evolve Payment Apart
Deep Merchant Processing Industry Expertise
Evolve Payment doesn’t believe in one-size-fits-all solutions. For over twenty years, we have specialized in B2B payments, understanding the unique challenges and opportunities faced by businesses in various industries. This allows us to develop embedded finance solutions that are relevant and impactful for each of our unique clients.
Frictionless Integration Capabilities
Evolve Payment prioritizes seamless integration of payment solutions into existing platforms and workflows. This means no disruption to your business operations, just a boost in efficiency and convenience.
Beyond Payments
Evolve Payment goes beyond simply processing payments. We offer a comprehensive suite of embedded finance solutions, including:
- Invoicing and receivables management
- Automated payments and subscriptions
- Lending and financing options
- Fraud prevention and security
- Data analytics and reporting
A Collaborative Approach
Evolve Payment fosters close collaboration with our clients, acting as a trusted partner in your financial journey. We work closely with businesses to understand their specific needs and develop solutions that exceed expectations.
Innovation at the Core
Evolve Payment constantly innovates and explores new ways to leverage technology to enhance the embedded finance experience. They partner with leading fintech companies and are always ahead of the curve in adopting cutting-edge solutions.
The Result of an Evolve Payment Partnership
B2B businesses partnering with Evolve Payment experience:
- Increased operational efficiency
- Improved customer satisfaction
- Enhanced cash flow
- Reduced costs
- New unlocked revenue streams
Evolve Payment isn’t just processing payments; they’re revolutionizing how B2B businesses manage their finances. By embracing embedded finance and fostering strategic partnerships, we empower businesses to reach their full potential.
Ready to evolve your B2B payments? Contact Evolve Payment today and see how our innovative approach to embedded finance can transform your business.
Remember, embedded finance is not just a trend; it’s the future of B2B payments. By partnering with the right provider, you can stay ahead of the curve and unlock the full potential of this transformative technology.