3 min read

November 21, 2022

5 Reasons Your Business Needs Embedded Payments

Back in the early 2000s, payment processing used to be a separate buying decision for businesses: a business owner would find a bank for the payment processing and then choose an entirely different system for running their day-to-day operations. It was a lot of work! While you are likely familiar with APIs and integrations, one area of these quickly emerging technologies is gaining popularity: embedded payments. 

Embedded payments go one step beyond integrated payments by offering a host of features for business owners, customized for their industry. For instance, in the fitness industry, studio owners need software that helps them manage studio access and capacity and make repeat customers with loyalty programs, all while giving their consumers the freedom to pay with the click of a button. 

Embedded payments are powerful and it is an elegant way of enhancing the customer experience, increasing conversion and driving up the margins. Embedded payments can also increase your bottom line. They allow accepting payments anywhere and anytime and can also link to eCommerce shopping cart inventory, email and text-based marketing tools and loyalty programs so that you can sell services and products to more customers. Plus, they accept recurring payments - so you can set up customers with long-term payment plans. 

XanPay - 5 reasons your business needs embedded payments

Here are five reasons why your business will benefit from embedded payments:


Table of Contents

 
1. Embedded Payments are Secure

Payment technology embedded within operating software has a layered security approach that uses point-to-point encryption and tokenization to keep sensitive online payment data safe and secure, along with important business data to protect both consumers and businesses from fraud. 

2. Embedded Payments are Straightforward

The onboarding process is quick right from signatures, equipment setup, boarding, and activation to device delivery. Moreover, you get to deal with a single vendor for all your online payment technology and business needs without having to waste time managing various technology providers. 

3. Lower Cart Abandonment

Embedded payments decentralize the often-stressful checkout experience within the eCommerce industry. It removes much of the friction involved in making digital payments. In the era of on-the-go transactions and mobile shopping, this is an invaluable tool for getting conversions that you could lose otherwise. Let’s say that you are on your lunch break and looking for a new pair of shoes. After comparing various brands, sizing charts and models you finally find the perfect pair. You head to the checkout - only to find a bunch of fields that you need to fill out for the chosen payment method. And thus, your break is over and you are forced to abandon the cart. 

Shoppers in such a situation might come back and complete the transaction later - or they may not. Did you know that 17% of US online shoppers have abandoned an order in the past quarter solely because of a “too long/complicated checkout process”? 

When there is an embedded payment solution in place, this is not a problem anymore. 

4. Embedded Payments Accelerate Revenue Growth

The onboarding process is quick right from signatures, equipment setup, boarding, and activation to device delivery. Moreover, you get to deal with a single vendor for all your online payment technology and business needs without having to waste time managing various technology providers. 

5. Embedded Payments Lead to Better Customer Experiences

Consumers need to be able to book and buy wherever they are, whether online or in-store or even on the move. Embedded payments make it easier for giving customers a consistently wonderful experience with the flexibility they need - like the online payment methods they prefer, the ability to easily subscribe or reorder etc. 

 

Should you Implement Embedded Payments for Your Business?

First off, you need to consider whether your business has the bandwidth of managing the embedded payment process. Although embedded payments might seem straightforward, it is a lot of responsibility for merchants. When you use a third-party provider, everything from PCI compliance to storing customer data securely is your responsibility. 

If you don’t want to prioritize recruiting the talent needed to implement and manage embedded payments then it is better to wait until you are ready to give it the support it requires. By embracing embedded payment solutions, brands eliminate key points of friction and retain much more control over the user experience. 

The growth of embedded payment systems is a testament to the rapid developments that are taking place in fintech. It is also a shift in how consumers and merchants conceptualize the limits of the brand experience. Earlier, it was the job of an eCommerce merchant to provide goods for sale and emphasize providing a consistent shopping experience. The end-to-end shopping experiences have expanded the value proposition of eCommerce

From on-site order tracking to in-app purchases through social media feeds, the growing interconnectivity across platforms and tools has made it possible for eCommerce brands to bring a broader range of functionalities. This ecosystem builds greater levels of brand trust and minimizes disruptions to customer experience. To sum it all up, merchants who enable a wide array of digital services will be the winners of this new era of embedded experiences. 

 
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