What Is Embedded Finance?
Embedded finance can be any financial service offered by a non-financial company. Embedded finance enables companies to offer financial services to their customers at the opportune time, and is proven to significantly increase engagement. According to a report by Accenture, embedded finance will see a $92 billion revenue uplift by 2025.
Below, we will go into different kinds of embedded finance and how fintech companies such as Nayax have created new and innovative advancements in this field.
Examples of Embedded Finance
Banking as a Service
Banking as a service or embedded banking is becoming more and more common. Companies such as Lyft and Shopify are providing their employees with financial benefits such as a company bank account and debit card which allows them to receive their payments faster.
Branded Payment & Prepaid Cards
Though branded payment cards aren’t new, apps like Monyx Wallet give unattended business operators the chance to digitize their payment cards. Monyx offers two kinds of prepaid branded cards:
- Nayax branded prepaid cards can be used at any Nayax-operated machine and offers consumers up to a 10% top-up bonus (funded by Nayax) when they add money to the card.
- Operator branded cards can be used at a specific operators’ machine, and operators can also provide benefits such as top-up bonuses. Operator branded cards are ideal in closed-loop environments.
Branded and prepaid cards not only provide consumers with a convenient way to pay, but it helps operators engage with them, building connection and brand awareness.
Embedded Payments via Digital Wallets
Mobile apps such as Nayax’s Monyx Wallet allow consumers to pay for products or services with just a tap of their phones. Monyx Wallet allows consumers to add their credit or debit card number or to pay with Apple Pay or Google Pay. When they use the app, consumers are rewarded with cashback through gamification. Games like “Shake to Win” and “Memory Game” encourage consumers to come back and spend more.
Banks and financial services are probably best known for lending. However, lending has now become something that any and every company can do. Models such as “Buy Now Pay Later” are becoming more and more common, allowing consumers to make larger purchases and to pay them back through weekly or monthly payments.
Nayax Capital, Nayax’s unique pay-as-you-grow financing is a new solution in the USA market. With Nayax Capital, Nayax offers business operators a risk-free way to purchase the VPOS Touch card reader or the Nova Market self-checkout kiosk. This financing solution allows operators to purchase these devices and to pay them back as a percentage of their sales until the devices are paid in full. Operators are provided with a personalized offer based on their past performance and other financial factors, and the financing is completely interest-free, has no payment schedule, and no additional or hidden fees.
Our last example of embedded finance is embedded insurance. More and more companies are offering insurance to customers as an add-on when they check out, making it available when and where they need it.
Embedded finance is beneficial for both companies and consumers. Consumers are given easier and more convenient access to financial services, while companies have more opportunities for growth and a way to develop new revenue streams.
Want to learn more about Nayax’s innovative embedded finance solutions? Contact us today.