Embedded Payments
Embedded payments are an example and an enabler of embedded finance, and are used to integrate payment functionality directly into a business’s platform, enabling seamless transactions without redirecting users to third-party processors. This enhances user experience and operational efficiency. Modulr is an example of an embedded payments provider, using API-driven solutions to enable businesses to integrate payment processing directly into their platforms, facilitating seamless transactions and improving operational efficiency.
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
