A wise man once said, “that the best predictor of future behavior is past behavior.” Whether you agree or not, use this as a guide to the future of embedded finance. There are a lot of takeaways that can be taken from SaaS platforms implementing payment providers over the last two decades.
“Embedded payments,” which was once called “integrated payments,” has undergone many changes. You can talk about implementation, referral models to payment facilitation. These strategies focus on the monetization and boarding of merchant accounts. We will focus on established technology and its implications on embedded finance: the hosted payments page.
Many paths can add card-not-present transactions. The easiest and most popular method tends to be a redirect, embedding of a hosted payments page or iframe widget. Most platforms do not need a fully customized experience but an approach that is easy to implement while maintaining security and a branded experience. What does this say about embedded finance?
Embedded Finance and the various services it covers are growing by the day. These solutions vary significantly from enterprise to SMB-focused and implementations spanning weeks to years. If payments indicate how embedded financial tools like payroll, banking, lending, and issuance will be implemented, the path of least resistance will be the dominant solution.
Vertical Software as a Service providers want to provide additional services that don’t significantly distract from their core mission or development roadmap. They typically want to diversify revenue streams, create additional revenue, and limit engineering resources, all while creating a fantastic UX for their customers. This is core to HONORs strategy of Software Monetization as a Service.