Embedded Finance and Financial Sector Leadership

Embedded finance is one of the new trends that has significantly impacted banking in recent years. In simple terms, it is the financial services provided by companies operating in the non-financial sector. A prime example is the provision of BNPL loans by trading platforms like Amazon. Similarly, a car manufacturing company might provide insurance to its customers when they buy their vehicles.

Benefits of Embedded Finance

Depending on a company’s place in the marketplace, embedded finance can have different benefits for it. For example, this service allows retailers to expand their customer base and gain economic benefits from each transaction. Fintech companies can expand their sphere of influence, develop new partnerships and organize ecosystems in industries and verticals entirely new for them.

The task is made more accessible because fintech companies have developed modern, reliable, and convenient payment tools to implement embedded finance, which can track the actual path of their customers across the ecosystem. For more information visit https://wallester.com, a financial institution that develops financial digital technology and issues co-branded VISA payment cards or company expense cards for any businesses.

The Benefits of Embedded Finance For All Areas Of Business

The main advantage to all business sectors from embedded finance is that the customer doesn’t have to leave the trading platform to make a payment. It benefits both parties involved in the transaction. For the customer, it’s a simple, quick, and hassle-free purchase. And the business gets an additional tool to increase customer loyalty and repeat purchases.

An example of the practical use of embedded financial features for commercial purposes was the company DoorDash. This online food ordering and delivery platform launched a separate card program for its drivers.

A payment card was issued for each of them to receive payment for their services. Square has offered small and medium-sized businesses whose business involves accepting payments to take advantage of their innovative payment products. Embedded finance can be used to provide consumer loans to customers. That’s what Shopify has done.

With embedded finance, companies’ relationships with their customers become more intimate and personalized.

Hotel and restaurant business owners have actively used embedded finance. They were pushed to take this step by the constraints of the coronavirus pandemic. Distance rules forced restaurateurs to develop online menus.

To get access to it, to make an order, and pay for it, it is not necessary to call a waiter. It will be enough to scan a QR code at your table. All these actions are available on one platform. For it will be easier for the client to make the order while visiting the restaurant next time, he is offered to download and install a unique mobile application.

It is the principle used by the well-known chain of coffee shops, Starbucks. Each purchase is further awarded points for the loyalty program in their mobile application.

It is convenient to use embedded finances because there is no need to carry cash, a physical card, or remember and enter your bank account details to make a transaction or purchase.

Benefits For Fintech Companies

Many fintech companies are popping up in the market right now. They are now competing not only with traditional banks, but also with each other. Most of them do not issue payment cards for obvious reasons, the more so that few of them can offer clients a past issue of a wide range of virtual cards, as well as integration with mobile payment systems. 

Tech companies can also cooperate with traditional banks, following the example of Google Corporation, which is in partnership with 11 banks and credit institutions. The Google Pay wallet is linked to a current account at one of these banks. It allows banks to gain new customers in the commercial digital space, while giants like Google expand their services and increase customer loyalty.

Offering From Wallester

Wallester offers an innovative platform with a co-brand solution for launching card projects and processing transactions. It can be a crucial element and significant improvement of an ecosystem for some fintech companies.

Using this platform, fintech companies will be able to increase the speed and flexibility of their embedded offerings, and they will have more straightforward control over their operations.

To connect payments and digital finance features to partner services, the Wallester platform uses an open API. The platform can be used to issue and manage cards for consumer products, expense reimbursement, and payroll projects. These can be physical cards as well as virtual cards.

Virtual cards allow users instant access to their finances. They can easily connect to Apple Pay, Google Pay, and Samsung Pay mobile payment systems or can be used for online shopping. All types of payment cards can be tokenized, providing an increased level of security for transactions that are made using them. 

Another advantage of Wallester’s solution for fintech companies is its ability for customization, uniqueness and individuality. The platform allows you to issue white label products rather than standard cards.

Physical and virtual cards can be branded, and the exclusive design can be applied horizontally and vertically. It will strengthen the brand’s position in the market, increase its recognition and attract the attention of new customers. With help of Wallester team,  the customer develops the design concept individually, so each product is original and distinguishes the company from its competitors.

Wallester offers fintech companies the opportunity to move to an entirely new technological level. With the help of the innovative platform, it is possible to optimize existing payment solutions, expand the functionality of payment instruments, simplify financial processes in the company, and offer its clients completely new services and functions.