The embedded payments solutions witness continued demand in the market since it simplifies the complexity of payments in businesses

The embedded payments solutions witness continued demand in the market since it simplifies the complexity of payments in businesses

The embedded payments solutions witness continued demand in the market since it simplifies the complexity of payments in businesses

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Amidst the growing demand for embedded payments among software firms, payments companies are launching embedded payments solutions to help these platforms to increase revenue through payment monetization. For instance,

  • In April 2022, the global payment company, BlueSnap, introduced embedded payments and Payfac-as-a-Service solutions for B2B and B2C businesses. BlueSnap Dash, BlueSnap Relay, and BlueSnap Flex are the solutions designed by the company particularly to help the software platforms to drive revenue growth, elevate the user experience, and also to increase product retention. BlueSnap developed these customized products to empower software platforms to reach customers globally and profit from payments. For instance,  
    • BlueSnap Dash - These are the company's hosted turnkey solutions which are the fastest speed-to-market product offerings of the company.
    • BlueSnap Relay - These are white-label Payfac-as-a-Service offering that helps in protecting businesses from risk while at the same time allowing them to brand it their way.
    • BlueSnap Flex - These are branded Payfac-as-a-Service solutions of the company that uses BlueSnap's APIs to provide complete control to the software platforms.

Therefore, by leveraging BlueSnap's Embedded Payments and Payfac-as-a-Service solutions, companies are able to build revenue streams by developing the ability to derive profit from payments revenue as well as to increase customer retention.

According to BlueSnap nearly 50% of software firms are seen to become payment facilitators. And the vast majority (88%) would look to embed third-party technology into their platform instead of building a payment facilitation solution. Therefore, the company expanded its product offerings to capture this market, which is set to increase by more than 40% and is expected to reach US$124 billion in 2022.

Consequently, it is expected that these embedded payment solutions, which enable the companies to build and implement their own branded payment experiences, are likely to see growth over the medium to long-term perspective. Further, this solution will enable the software companies to increase revenue for their business through payment monetization and also help in reducing the risk for software platforms by alleviating the responsibility of meeting and tracking compliance rules.

On the other hand, businesses such as hotel and resort chains are expecting a rise in business travel with the revival of the economy, and thus, payment platforms are integrating with booking sites for simpler products and services to capture a greater market share. For instance,

  • In April 2022, hotels and resort chains Choice Hotels International leveraged United States-based B2B payments firm, TreviPay's embedded payments solution to bring flexibility and financial management support to business travel. Notably, Choice Hotels International, which is a chain with 7,100 hotels, will be using the payment capabilities of TreviPay, which processed payments of more than US$6 billion each day in over 27 nations.

Through this embedded payments solution, companies that need to book tickets for their corporate travel with Choice Hotels need to select an invoicing option that would not require any physical card for payment, and also, the company receives consolidated invoices for all its travelers. Consequently, this will help the corporate clients of the hotel chains to save time on invoice tracking and expense management. Additionally, the companies will also be relieved from consolidated hospitality billing, thereby enabling them to focus on business growth and development.

Notably, according to PayNXT360’s projection, business travel is likely to see an increment of 40% in 2022, and therefore, these expense management capabilities are expected to attract significant customers over the medium to long-term perspective.

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

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