UpGate as the Key to Embedded Finance Mastery

Embedded finance refers to the integration of financial services—such as payments, lending, insurance, and investments—into non-financial products or services. In 2024, numerous businesses, especially in the SaaS sector, are already offering or planning to offer embedded finance services. Let's explore how different sectors leverage embedded finance to drive growth and innovation.

Industry Applications

🛒 E-commerce

Payment Solutions: Younger consumers increasingly expect more from their shopping experience, particularly at checkout. A recent survey by Vodeno/ Aion Bank highlighted that 52% of 25-34-year-olds now prefer financial products embedded in their favorite brands rather than those offered by traditional banks. Moreover, half of these consumers are loyal only to brands that integrate flexible financial solutions, such as Buy Now, Pay Later (BNPL). (Money20/20)

Lending: Companies like Klarna offer point-of-sale financing options that allow customers to make purchases and pay in installments. This embedded lending service is becoming increasingly popular, particularly in online shopping, as it gives consumers greater flexibility in how they pay for their purchases. (The Paypers)

Insurance: Retailers are beginning to offer embedded insurance at the point of sale. For example, Lemonade provides embedded insurance options within consumer platforms, such as offering extended warranties or insurance on products like electronics at the time of purchase. (The Paypers)

✈ Travel and Hospitality

Booking Platforms: Online Travel Agencies (OTAs) like Expedia Group integrate financial services such as travel insurance and payment plans directly into their booking platforms, providing a seamless customer experience from booking to payment. (The Paypers)

Loyalty Programs: Travel platforms are embedding financial services into their loyalty programs, allowing users to earn and redeem points with greater flexibility and control. For instance, Delta integrates payment options that allow users to pay for flights with a combination of miles and cash. (The Paypers)

👾 Gig Economy

Payout Solutions: Companies like Uber and Lyft offer embedded payout systems that allow drivers to receive earnings immediately after completing a ride, instead of waiting for weekly or bi-weekly payouts. This is facilitated through partnerships with payment processors and fintech companies that provide instant payout solutions. (The Paypers)

Financial Management Tools: Platforms like DoorDash provide their gig workers with access to financial tools such as tax management and savings accounts directly through the app. (The Paypers)

Gaming: Embedded finance facilitates in-game purchases and microtransactions. For instance, platforms like Steam have integrated embedded finance through their Steam Wallet, allowing users to manage in-game purchases directly within the platform. (Payments Dive)

⚕Healthcare

Financing: Patients can now access financing options directly through healthcare providers' platforms. For example, some medical practices offer embedded loan options that allow patients to finance expensive procedures over time, making healthcare more accessible. (The Paypers)

What is the role of UpGate

UpGate manages complex payment processes across multiple providers, currencies, and regions, reducing operational costs and simplifying the integration of embedded finance services.  Is your business maximizing the potential of embedded finance?

👉 If not, consider UpGate as your payment orchestration solution. Combining embedded payments with payment orchestration significantly boosts business efficiency, flexibility, and revenue potential.

🔗  Learn more and request a personalised demo: upgate.com