Unlocking revenue and other benefits with embedded payments
Discover the different types of embedded payments and how they can increase revenue, boost customer retention, and improve the payment experience.
Embedded payments are an important way for retailers and operators to simplify payments and increase conversion rates. This article explains what embedded payments are and why they matter to your business.
TLDR:
- Embedded payments integrate payment capabilities directly into platforms or apps, enabling seamless transactions without redirecting users to third-party sites.
- They improve customer experience by reducing friction and cart abandonment, leading to higher conversion rates and increased revenue.
- Embedded payments enhance customer retention through a smoother checkout and secure data handling via encryption and tokenization.
- They simplify integration for businesses by providing pre-built APIs, saving time and resources on payment infrastructure.
- Businesses can unlock new revenue streams and scale globally while maintaining control over compliance and payment processing.
What are embedded payments?
Embedded payments are payment capabilities seamlessly integrated directly into software platforms, applications, or services, allowing users to complete transactions without leaving the platform’s environment. Integrating embedded payments keeps customers engaged by eliminating the need to switch between multiple systems and vendors, reducing the risk of abandonment.
But there is more to embedded payments than simply creating a smoother customer experience.
What are the benefits of embedded payments?
Here are some of the benefits of embedded payments for your business:
Improved customer experience
Redirecting customers to an external service or website during checkout can be frustrating or confusing. Providing embedded payment capabilities creates a seamless experience with the whole checkout process contained within the app or website. The better the experience, the higher the customer’s satisfaction.
Increased revenue
As people become more vigilant about online fraud, even legitimate activities, like redirection to a secure payment gateway, can be a cause for concern. And if customers are suspicious, they will abandon their transaction.
Embedded payments allow you to keep customers engaged throughout the whole transaction, reducing abandonment and increasing revenue.
Customer retention
A good shopping experience makes customers more likely to return, and repeat customers tend to be worth far more than one-time purchasers. Refining your buying process with embedded payments is a useful step towards encouraging customers to come back.
Embedded systems also secure payment data, using encryption and tokenization to protect against theft. This also helps to build customer trust in the platform.
Ease of integration
Partner-side APIs (application programming interfaces) provide pre-designed building blocks for embedding payment solutions directly into your software platforms. APIs are designed for easy implementation, eliminating the need to build your own payment infrastructure from scratch, saving time and resources.
Types of embedded payments and how they increase revenue
There are several embedded payment types available, allowing you to choose the option that best suits your application's needs and your customers' preferences.
Embedded wallets
Digital wallets are an extremely popular alternative to credit/debit card payments. Embedded wallets take the concept further, providing a way for customers to spend and save from a wallet integrated directly into your website or app.
Embedding digital wallet functionality eliminates the need for buyers to use an external wallet and prevents redirection to a third-party website/app when they attempt to complete a purchase. Easier access to funds makes it easier to spend. And that’s good news for your revenue.
Paysafe offers a seamless embedded experience for payment and identity verification, as well as convenient and fast deposit and withdrawal options.
Buy now, pay later
Buy now, pay later (BNPL) programs allow customers to purchase items and repay in several smaller instalments. These schemes enable customers to spend slightly more, and retailers to increase profits.
Importantly, BNPL options can be embedded into your checkout processes to solve the challenges outlined above.
App payments
App payments occur entirely within the app. These transactions can be completed in various ways, depending on the target audience, including peer-to-peer transfers, in-app purchases, digital wallets, and other options facilitated by modern payment gateways.
App payments prioritize convenience and speed, allowing users to complete transactions without physical cash or cards and often without leaving the app. This makes for a pleasant, seamless experience for customers.
Paysafe’s embedded payment solutions
Paysafe offers an extensive suite of payment solutions that can be tailored to any application, marketplace, or preference, including embedded payments. Our tools are designed to improve your customers' checkout experiences, boosting efficiency and profits in the process.
Learn more about what Paysafe’s embedded solutions offer, starting with our embedded wallets.
FAQs
What is the difference between integrated and embedded payments?
Integrated payments connect a third-party payment provider to a software platform but keep merchant onboarding and management largely off platform. Embedded payments fully integrate the entire payment experience within the platform, giving businesses control over onboarding, compliance, transaction processing, and user experience without redirecting users to a third-party service.
How do embedded payments work?
Embedded payments work by integrating a payment service provider’s API directly into a platform or application, allowing users to enter payment details and complete transactions without leaving the platform.
What are the benefits of embedded systems?
Embedded payment systems offer a broad range of benefits, including:
- Improved customer experience
- Increased revenue
- Customer retention
- Ease of integration