Embedded payments integrate digital payment options within a non-financial company's platforms and apps. They provide a seamless way for customers to pay for goods without leaving the company's website or app. Key examples include digital wallets and instant payments.
Until now, businesses looking to embed payment-related features would have to navigate a complex vendor-onboarding process, address compliance concerns and deal with the archaic technology of legacy infrastructure.
Within the next seven years alone, the IDC predicts that 74% of digital consumer payments will be conducted through platforms owned by non-financial institutions.
According to Research and Markets, the embedded payment revenues in the region will increase from US$124,755.7 million in 2022 to US$380,573.2 million by 2029.
Embedded payments enhance the customer experience. The ease of use for the customer is second to none. Everything is happening for the user in one click. Of course, there's more happening behind the scenes, but the customer doesn't need to worry about that.
For years, SaaS companies have had to rely on multiple solutions to accept customer payment. This was cumbersome and time-consuming. Along comes Amazon with their embedded payment solution: Buy Now. Customers simply input their credit card or banking information once - and when they click to purchase something, they merely have to confirm their financial information and shipping address. This is the new normal.
According to the McKinsey annual Digital Payments Consumer Survey, one in three consumers will exit an online transaction if the wait is too long. Most will abandon the purchase in less than 30 seconds.
This is why there is a direct correlation between the company's bottom line and customer satisfaction. Customers demand payments in one place and executed quickly.
Embedded payments make it easier for your customers to pay you, which can increase sales for your business. The easier it is to pay – think frictionless payments – customers are more likely to complete their purchase; plus, they're more likely to spend if they are happy with their payment journey. This can boost revenue.
Faster checkout flows and less payment friction can increase the number of purchases and improve sales. And customers are less likely to abandon purchases.
Building a payment engine takes time and money, but if you use VoPay's system, you'll be able to:
Manage Cash Flow
Faster transaction processing improves cash flow and results in lower capital requirements and a reduction in the cost of capital.
Our payment engine eliminates errors and efficiencies and allows you to easily track and reconcile your payments.
Gain A Flexible API
A single developer-friendly API that supports any business model and lets you easily integrate into your platform and customize payments.
Our intuitive dashboard provides a comprehensive report of all customer transactions, including account history, verification, transfers and more. Using VoPay's Fintech-as-a-service platform, your engineers can focus on other projects or product improvement.
Paying for a service is the first experience a customer has with you. You want to keep it simple with a comprehensive (Saas payment solutions) solution that meets your business and customers' needs. With VoPay, whether using our powerful API integration or our full-featured online dashboard, VoPay offers the tools you need to send and request direct bank account payments at scale.
Why is this so important?
Customers who trust your business will not exit as quickly if there's a hiccup. If you have optimized user flow and provide an excellent overall digital experience, customers will stay on the website or payment screen longer, which leads to lower drop-off rates. The general rule of thumb is a reasonable drop-off rate of 26% to 40%.
Do not put the onus on the customers. In today's digital world, it's not up to them to even "remember" to pay you. This must be automated with a solid SaaS payment processing system in place.
Canadians still use close to a billion cheques each year, and it's imperative to move toward digital payments. According to Mastercard, 38% of SMBs in the US and Canada are experiencing cash flow issues associated with late payments and slow processing of cash and cheques.
Many companies have communicated that they would be open to moving away from cheques if they had confidence that a digital alternative would be secure, efficient and suit their needs. With VoPay's unified payment platform, businesses can access multi-rail payments, including EFT, eLinx, Visa Direct and e-Transfers.
By 2026, the value of the embedded-finance market will exceed $138 billion, up from $43 billion last year. Embedded finance is an approach that combines all the elements of purchase into one seamless process. This is already showing up in our daily lives when we use apps such as Uber and "buy now, pay later" programmes. It's a concept that will continue to grow in popularity, with more brands jumping on board. Think about buying a Tesla and the insurance all in one go.
Offer multiple payment options and automate reconciliation to increase efficiency and engagement for your business. Embed payments directly into your software solution or platform using VoPay's intelligent payment technology.
All of VoPay's payment transactions are secured through tokenization technology and include risk intelligence, AR/AP automation, advanced reporting, and bank account verification.
Get started today with embedded payments!