Embedded finance solutions are targeting SMEs to expand their market share

Print

Email

According to PayNXT360’s Q4 2021 Embedded Finance Survey, the Embedded Finance industry is expected to reach US$241 billion in 2022. The demand for embedded finance products such as embedded lending, especially buy now pay later products, increased significantly in the last two years. Similarly, the embedded insurance market has experienced increased demand in 2021. Consequently, to fulfill the increasing market appetite for embedded finance experiences, fintech companies are launching new products and solutions to expand their market share. For instance,

In March 2022, Parpera, a money management platform, introduced an embedded finance product in the form of a debit card in the Australian market. This product is the result of the partnership with Railspay, the Australian arm of global embedded experience platform Railsbank and neobank Volt.

Specifically, the Parpera Business Debit Mastercard card, which will be linked to the deposit account, can be accessed by sole Australian traders to better manage their business payments, make fee-free international transactions, and control their spending. The card users will also be able to use the Parpera App together with the debit card to manage the business. Also, the debit card can be added to Google Pay for transactions.

Parpera, which provides services only to sole traders, freelancers, and startup founders, will be expanding its embedded finance business experience to Australian companies also from the second quarter of this year. The company also plans to link Apple Pay to the card from that quarter.

Most business owners suffer from the need for payment of three to four percent fees on top of international card payments, usage of personal cards for business payments, and many others. Therefore, these business owners will be particularly be benefitted from this card. Moreover, this partnership will help to transform the banking and invoicing experience for Australian businesses by helping them to save time and money. Consequently, the launch of Australia's first BaaS-enabled offering via a partnership with Railspay will help business owners of in the country.

Similarly, the United Kingdom-based IRIS Software Group and UNIPaaS, an Israeli embedded fiancé company entered into a partnership in March 2022, to deliver an embedded finance solutions platform to SMEs. Notably, UNIPaaS, which helps organizations to embed, also offers services such as onboarding, global payments both in and out, and vendor accounts. Therefore, IRIS will embed UNIPaaS first, either in IRIS KashFlow, IRIS Financials or IRIS Practice Essentials to bring embedded solutions to SMEs in the United Kingdom. The solution will help SMEs to improve their cash flow through faster payments. Also, the embedded finance solution helps several key processes to be automated, eliminating potential manual errors, thereby helping companies to grow. By targeting this large consumer base IRIS Software is expected to increase its market share in the embedded finance market in the United Kingdom.

In March 2022, Railsbank became the BIN sponsor for the Sodexo Engage Spree Card program. Through this partnership with Railsbank, Sodexo Engage will be able to provide a smooth and secure end-to-end payment process to its cardholders. Notably, Sodexo Engage is a United Kingdom-based employee engagement company that provides the employer to offer the employees with bonuses, referrals, and incentive rewards through its Spree card.

To know more and gain a deeper understanding of the global embedded finance market, click here.