Embedded Payments Emerge in B2B
As embedded payments become the norm for consumers, a report from IDC predicts that 74% of digital consumer payments globally will be conducted via platforms owned by nonfinancial institutions by 2030. As the industry evolves, there are two major trends to watch for in the market: the growth of embedded B2B payments and the opportunity for financial institutions to work with fintech partners to support growing demand.
Tips to Adopt Embedded Payments
With the growth of banking as a service and open-access APIs, businesses now can leverage financial services technology to customize payment solutions for their needs. Companies can utilize this payment technology to streamline their employee procurement process, control spending limits, and easily track and reconcile charges without manually reviewing every purchase.
One tactic to help merchants feel less overwhelmed with modernizing back-end financial processes, is to start small and run test solutions or services before fully embedding them into AR processes or committing the resources. That way, merchants and their teams can feel confident in the value of the technology as a company scales while simultaneously working out the kinks. This slow approach can help merchants succeed into the embedded payments environment.
It is equally important for merchants to assess providers who offer this technology. Choosing solutions based on the feature set today doesn’t always guarantee long-term success. Providers that offer flexibility within their offerings and help merchants adjust to changing demand is key to success.
Role of Banks in Supporting Growth of Embedded Payments
Traditionally banks do not have the resources to manage or access integrated payment systems. Accessing the payment technology needed to embed features would require lengthy vendor-onboarding processes, addressing compliance concerns, and navigating outdated technology of legacy infrastructure. That is why some financial institutions are turning to fintech partners who are serving as a third party to aggregate a combination of services. This way, software companies can easily tap into financial services, and banks can begin to modernize their suite of offerings.
For banks, the opportunity is to build an ecosystem conducive to collaboration and create flexible APIs for clients and third parties to easily access and be able to customize. Fintech partners can serve as an aggregator or gateway to the product and services offered by a B2B merchant, mitigate onboarding efforts, and minimize associated risk concerns.
Learn About i3 Commerce Technology’ B2B Payments:
Contact us online or call 1-800-621-8931.
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