The Future of Embedded Payments: Unlocking Growth Opportunities with EY

What Are Embedded Payments?

Embedded payments integrate payment processing capabilities directly into a platform’s existing software, creating a unified experience for end users. For example, a software platform serving healthcare providers might enable patients to pay their invoices directly within the application, eliminating the need for external systems or manual processes.

This seamless integration delivers multiple benefits, including improved user experiences, operational efficiency, and incremental revenue opportunities. At its core, this allows platforms to provide value beyond their primary offerings and services, positioning themselves as indispensable to their customers.

The Rise of Embedded Payments

The adoption is accelerating, driven by a combination of technological advancements and changing customer expectations. A recent study conducted by EY-Parthenon in collaboration with Finix reveals the following trends:

1. Adoption Gaps Persist

While 60% of non-financial platforms have embraced this, many have yet to realize their full potential. Among platforms that have implemented embedded payments, only 58% achieve significant customer adoption rates, meaning these platforms struggle to fully integrate payments into their customer journey in a way that drives engagement, loyalty, and recurring revenue.

2. A Strategic Shift is Needed

Despite the clear benefits, 70% of platforms still view payments as a utility rather than a growth engine. This mindset limits their ability to leverage this for long-term competitive advantage.

3. Resource Challenges Exist

For 41% of platforms, limited internal resources remain the biggest hurdle to implementing, while 26% cite competing business priorities as a significant barrier.

Benefits of Embedded Payments

This unlocks the value for both platforms and their customers.

For Platforms

1. Revenue Diversification

Payment processing fees provide an additional revenue stream, complementing traditional subscription or transactional business models.

2. Enhanced User Experience

By eliminating friction in payment workflows, platforms can increase customer satisfaction and retention.

3. Operational Efficiency

Integrating payments reduces reliance on third-party systems and minimizes manual interventions, freeing up resources for innovation.

4. Competitive Differentiation

Platforms that offer position themselves as forward-thinking and customer-centric, standing out in crowded markets.

For Merchants and End Users

1. Simplified Payment Processes

Merchants can manage their payment operations directly within the platform, saving time and reducing complexity.

2. Improved Cash Flow Management

Features like instant payouts and real-time reporting help businesses manage finances more effectively.

3. Tailored Solutions

Platforms can offer payment features that address specific industry needs, such as recurring billing for subscription businesses or invoicing for professional services.

How Finix Supports Embedded Payments

Finix’s mission is building the global operating system for fintech to create the most accessible financial services ecosystem in history. We provide a full-stack payment processing solution designed to simplify the integration while maximizing value for our partners. Here’s how Finix helps platforms succeed:

1. Comprehensive Payment Infrastructure

Finix offers an end-to-end payment processing platform that handles everything from underwriting and compliance to settlement and reporting. This comprehensive approach allows platforms to focus on their core business while we manage the complexities of payments.

2. Developer-Friendly Integration

Our APIs and SDKs are built with developers in mind, ensuring a smooth integration process. With Finix, platforms can embed payments seamlessly and quickly, reducing time-to-market and enabling rapid iteration.

3. Flexible Business Models

Finix enables platforms to design payment solutions that align with their unique business goals. Whether it’s offering flexible pricing structures or customizing user interfaces, we provide the tools and flexibility needed to create differentiated payment experiences.

4. Embedded Fraud and Risk Management

Navigating the regulatory landscape can be daunting, but Finix simplifies this process. We handle risk management and fraud prevention, giving platforms the confidence to scale without worrying about legal complexities.

5. Customer-Centric Approach

At Finix, we recognize that every platform has unique needs, which is why our Customer Delivery team goes above and beyond to customize experiences for each client. By closely collaborating with our partners, we ensure that every solution is tailored to help them unlock the full potential of their embedded payment strategies. 

Realizing the Full Potential 

For platforms considering the adoption and looking to level up their highest potential of customer satisfaction, the journey begins with a strategic mindset. Here are actionable steps to maximize success:

1. Reframe Payments as an Asset

Shift the perception of payments from a cost center to a growth enabler.

2. Prioritize User Adoption

Invest in customer education and support to drive adoption and showcase the value of embedded payment features.

3. Collaborate with Trusted Partners

Partnering with a proven provider like Finix ensures a seamless implementation and long-term success.

4. Leverage Data Insights

Use payment data to gain deeper customer insights, refine offerings, and drive smarter business decisions.

The Future of Payments

Embedded payments are not just a technological innovation—they represent a paradigm shift in how platforms deliver value. As businesses increasingly seek to integrate financial services into their ecosystems, the role of payment providers like Finix will only grow in importance. By enabling platforms to embed payments effortlessly and strategically, we’re helping shape the future of commerce and empowering businesses to thrive in the digital economy.

To learn more about how Finix can help your platform embrace this, contact us today or download our latest report with EY. Together, we can unlock the full potential of your payments and drive meaningful growth.