As COVID’s apparent decline continues, there are several lasting impacts on how consumers and merchants interact. The massive growth of e-commerce sales lead to accelerated innovation in embedded finance. Tom Bentley of Vodeno explains in IBS Intelligence:
The wind is firmly in the sails of embedded finance, but we have only just begun to see the full scope of what it means for online retailers. So, what will its lasting impact be on eCommerce companies? And what should retailers expect in their future?
Vodeno surveyed retail decision-makers to better understand their use and targets surrounding embedded finance:
Among those surveyed, there was no outstanding single reason for their adoption of embedded finance solutions. 41% selected ‘creating new revenue streams’ as a key motivator, while 40% chose ‘growing the customer basket’, viewing embedded finance as a means of increasing profitability. 40% viewed it as a means of increasing customer loyalty, and 38% wanted to improve customers’ satisfaction with the brand.
The end result of embedded finance’s rise could manifest in greater gains than just e-commerce and create additional opportunity for retailers to improve the experience of their customers, benefiting the retailer bottom line and the overall customer lifetime value.
Overview by Jordan Hirschfield, Director of Research at Mercator Advisory Group