Embedded finance may lead the next payments revolution | Newsroom

Products

Resources

Solutions

Company

Back

Future of Fintech

Embedded finance may lead the next payments revolution

February 16, 2023

According to new research released recently from FIS® (NYSE: FIS), a global leader in financial services technology, global c-suite executives plan to invest significantly in Web3, environmental, social, and governance (ESG) frameworks and embedded finance in 2023, as companies look to fintech innovation to fuel growth despite economic uncertainty.

Most of businesses, especially start-ups today may seldom take care of their banking business with a conventional bank. By logging into their e-commerce or accounting platform, they can open multiple accounts, order credit or debit cards, receive or make payments, and meet most of their financing needs. These platforms are usually not supported by banks, instead, they are developed by software companies that partner with banks and technology providers. By embedding financial products into businesses' workflow, they can provide a single seamless, convenient, and easy-to-use customer experience. This new form of partnership between banks, technology providers, and distributors of financial products via nonfinancial platforms underpins what has been hailed as the embedded-finance revolution.

What is embedded finance?

Embedded finance broadly refers to the embedding of financial tools in non-financial services when consumers have unique, tailored financial needs. When a website or app other than that of your bank allows you to see your bank account balance, that’s an example of embedded banking. When you pay at the online checkout of an e-commerce site, you use an embedded payment tool. Embedded payments are most familiar to consumers, enabling the speed and convenience of paying for goods and services in an app with just a single click. New use cases across banking, lending and investing are emerging and the drive to deliver embedded financial services is on the rise in the U.S.

How does embedded finance play out in Web3?

Whilst the end vision for Web3 may be decentralised and blockchain-based, most commentators see the road map to get there as more of an evolutionary change rather than some sort of rapid revolution. The journey from where we are now, at the start of the embedded finance phase, to a financial landscape characterised by blockchain technology will most likely be a long one.

Both businesses and personal consumers have enjoyed the tremendous benefits of embedded finance. For the people who have been involved in blockchain, they also want to have a more convenient and seamless experience in cryto businesses.

In this sense, the average consumer will begin to expect to have access to their cash checking and savings accounts, the ability to send money internationally, investments, insurance and their crypto wallet in the same interface.

Considering the inherent virtues of transaction processing speeds, low commissions, transparency and immutability, embedded finance solutions into blockchain will bring immense potential. Combined, these fintech solutions provide the perfect infrastructure for the adoption of embedded finance and its integration not only into decentralized platforms, but also into the traditional economy.

Scalable solution provided by iPeakoin

iPeakoin CaaS (Card -as-a-Servic) is an innovative API solution for web3 projects, which empowers them to issue cards to their customers. Cardholders can use iPeakoin cards like Visa or Mastercards to buy goods or services, remmiting the process of manual crypto-to-fiat exchange.

Conclusion

Embedded finance is everywhere, even if we do not notice it or know of its existence. Businesses depend on embedded finance in the modern digitized economy. Blockchain-based decentralised ledger technology will likely converge and combine with embedded finance. The combination offers an array of new transformative possibilities that will likely shape as an ecosystem of compatible protocols.

For more details, or just want to say hi, feel free to send us a note at marketing@ipeakoin.com.

iPeakoin is a licensed FinTech platform that drives the innovation of crypto payments. With a scalable Card-as-a-Service to bring crypto further into mainstream financial services, we help crypto businesses build stronger connections with end users.