Digital finance solutions, such as embedded payments, have made the movement and management of money less complex and timely. Having to wait days to access transferred funds is now an exception, not the norm.
Today’s fintech solutions are changing business processes for the better; they’re enabling companies to streamline payment solutions and meet customer expectations more easily.
Embedded payments, in particular, are empowering these transformations. With these solutions, businesses can integrate payment solutions directly into their digital platforms, making way for smoother, more seamless financial operations.
“Embedded payment solutions reduce the amount of friction commonly associated with building robust financial operations and capabilities. They make them easier, faster, and efficient – while complying with the necessary security and regulatory requirements,” said Lee Cocking, Chief Product Officer at Cybrid. |
In this article, we’ll explain what embedded payments are, how they work, and why they’re increasingly used by modern businesses.
Embedded payments are digital solutions. They allow businesses to enable the flow of funds directly from their platform – without needing to build the infrastructure themselves. These solutions use APIs (Application Programming Interfaces) that embed directly into a company’s digital platform, such as an online storefront or customer portal.
With an embedded payment service, businesses can enable various digital payment options quickly, securely, and with minimal setup.
Some examples of embedded payment systems, and how they are used include:
On the surface, embedded online payment solutions serve to simplify and expedite the movement of payments and funds – which is undoubtedly true. However, they do more than that.
In addition to making payments easier, faster, and less convoluted, they provide the infrastructure businesses require to facilitate safe, compliant financial services. Infrastructure is built within a secure foundation that businesses can use to enable convenient quick, seamless digital transactions from within their own website, software solution, or platform.
The core of embedded payments (and embedded finances) is its ability to securely integrate financial processes into a platform’s existing operations. They become the secure and compliant backbone that payments and financial processes can operate from.
Why is this so attractive to businesses? There are multiple reasons, but 4 of the most common ones include:
Partner with an embedded payment company that turns finance processes into opportunity.
Integrating embeddable payment and financial processes into a platform takes a few key steps. Here’s how it works:
It’s easy to see how embedded payments are crucial for online retailers and ecommerce transactions, but there’s more to them than that. Embedded business payments play a critical role in helping B2B companies facilitate better financial operations and stay competitive too. In fact, B2B companies are fueling the embedded finance industry, which is expected to be worth $228 billion by 2028, a staggering 148% increase from its $92 billion valuation in 2024.
Below are three real-world examples of how B2B companies are enhancing their payment processes using embedded solutions.
Consider a fintech startup that exists solely online and needs a secure, digital solution to enable payments from their clients. Instead of building payment processes and compliance systems from scratch, the startup can integrate an embeddable solution that handles security, compliance, and transaction management.
This approach would allow the company to launch faster, offer secure payment options to customers, and focus on innovation. By leveraging embedded payments, the startup could compete effectively in their industry without getting bogged down by the complexities of payment infrastructure.
Colleges with international students and faculty could potentially use an embedded payment solution to embed cryptocurrency payment options into its billing system. By allowing cryptocurrency payments via an embedded payment API, the university could bypass the delays and high fees associated with traditional international bank transfers.
This solution would make it easier for students from different countries to settle their tuition payments quickly and securely and for international faculty to get paid more easily. Additionally, the university benefits from faster processing and reduced administrative burden.
Read these next: |
A SaaS company could use an embedded payment solution to simplify and automate recurring subscription payments and renewals. By setting up recurring billing, with an embedded business payment service, the company could ensure that clients are billed on time and payments are collected seamlessly.
This setup would enable the business to capitalize on subscription-based payments, automate recurring payments, and free up the team to focus on growing the business, while clients enjoy a smooth, hassle-free experience.
Embedded payments are the future of modern business payments. By enabling quick access to compliant, secure, and diverse payment options, businesses can optimize their payment processes more quickly, easily, and with much less investment and hassle.
At Cybrid, we help businesses leverage innovative finance solutions to drive revenue, growth, and ongoing success using embedded solutions backed by thorough, comprehensive, and secure infrastructure.
To learn more on our payment orchestration platform, visit our website. Ready to see Cybrid in action? Book a meeting with our experts.
Lee Cocking, Head of Product @ Cybrid