Embedded payments refer to the ability to make streamlined transactions within a business process by embedding external payment processes within the companies’ existing service. This method of payment is becoming increasingly popular in companies and organizations of all sizes, as it eliminates the friction associated with the client having to navigate outside the natural flow of the business transaction.
So, what exactly is this "friction" we're talking about? Well, when businesses don’t use embedded payment solutions, the clients are redirected to third-party payment providers to process payments. This can slow down the transaction and create a process that adds extra steps, becoming a hassle for clients.
Embedded payments remove this friction by embedding the payment processing directly into the business process streamlining the payment process for both the business and the customer. Removing this friction can lead to faster payment processing and an overall improved customer experience.
One example of embedded payments is within the software industry. Many software providers now offer in-app payments, which allow customers to purchase additional features or upgrades directly within the software application. This eliminates the need for customers to navigate to an external website to make a payment which results in a more seamless and efficient payment process.
Another example of embedded payments is within the retail industry. Retailers can implement mobile point-of-sale systems that allow customers to pay for purchases directly through a mobile device, without the need for a separate payment processing terminal. This not only speeds up the payment process but can also help to reduce the likelihood of abandoned purchases due to long lines or complicated payment processes.
As more companies realize the benefits of embedded payments, we can expect to see increased adoption across industries. By eliminating friction in the payment process, businesses can create a more streamlined and efficient experience for both themselves and their customers.