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,
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,
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.