Embedded Finance
Embedded finance refers to the integration of financial services into non-financial platforms or applications. This allows businesses to offer financial products and services directly to their customers, enhancing user experience and driving revenue. Embedded payments is an example of embedded finance and is a necessary enabler of it.
Applications
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
Advantages
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
Challenges
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
