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1、Insights into Payments and BeyondEmbedded Finance and Banking-as-a-Service Report 2024Financial Services at Your Fingertips,Anytime,AnywhereEndorsement Partners:Key Media Partner:RELEASE VERSION 1.0AUGUST 2024COPYRIGHT THE PAYPERS BVALL RIGHTS RESERVEDTEL:+31 20 893 4315 FAX:+31 20 658 0671MAIL:EDIT

2、ORTHEPAYPERS.COMContact usFor inquiries on editorial opportunities please contact:Email:To subscribe to our newsletters,click hereFor general advertising information,contact:Mihaela MihailaEmail:Embedded Finance and Banking-as-a-Service Report 20243THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvi

3、cE rEport 2024the Embedded Finance industry is projected to reach Usd 7.2 trillion by 2030,as businesses increasingly incorporate this technology into their strategies and operations.In the digital era,the way individuals and businesses access financial services is transforming.Software providers an

4、d digital platforms are embedding financial services into their core offerings to capitalize on numerous benefits.Embedded Finance creates significant value by solving problems across the value chain.Product providers,digital platforms,and consumers all benefit:providers gain access to new markets a

5、nd data-driven profitability,platforms secure additional revenue and reduced churn,and consumers enjoy seamless access to better-priced,data-driven financial products within their existing digital ecosystems.With the rapid evolution of financial technology,understanding the impact of Embedded Financ

6、e is crucial.Our 2024 Embedded Finance and BaaS report offers a detailed analysis of how financial services are integrated into digital platforms,systems,and business processes,transforming financial interactions for both individuals and businesses.What began as a trend among consumers adopting digi

7、tal payments has now evolved,with business leaders leveraging Embedded Finance to address challenges,meet needs,retain customers,and unlock new revenue streams.The report provides insights on major themes:Why businesses are gravitating toward Embedded Finance and the factors accelerating its uptake;

8、Successful implementations of Embedded Finance,including specific promising use cases;How Embedded Finance can boost revenue and address pain points;Challenges and solutions in implementing Embedded Finance and how to select the right partner for the journey;How digital transformation,including AI a

9、nd blockchain,is reshaping industries and driving the adoption of embedded payments;How the B2B Embedded Finance sector is evolving to match B2C advancements;Future outlook and growth opportunities in the Embedded Finance industry.This report offers valuable insights into these themes and more,provi

10、ding a comprehensive overview of how Embedded Finance is shaping the future of financial services.As you delve into the following pages,you will gain a deeper understanding of these trends and their implications for the financial industry and beyond.Thank you for choosing our report.We hope you find

11、 it both insightful and useful!ForewordMirela CiobanuLead Editor at The PaypersOana IfrimLead Editor at The Paypers4THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024A special thank you to our partners and contributorsContributors:Key Media Partner:Endorsement Partners:5THE PAYPERS|Em

12、bEddEd FinancE and banking-as-a-sErvicE rEport 2024Table of ContentsForewordKey Market Trends and Future Outlook:Successfully Navigating the Path AheadEmbedded Finance:Trends and Perspectives|Interview with Jovi Overo,UnlimitEmbedded Finance Solutions Will Help Revolutionise Trade and Working Capita

13、l|Vinay Mendonca,HSBC Commercial BankingHow Embedded Finance Is Driving Growth and Unlocking Benefits for SaaS PlatformsGetting SaaSy with Embedded Finance:Changing the Game!|Oana Ifrim,The PaypersEmbedded Payouts Will Follow the Success of Embedded Payins as the Next Frontier in Embedded Finance|Er

14、ik Howell,Flagship Advisory PartnersMoneyLIVE Payments Europe|20-21 November 2024|SugarFactory,Amsterdamstrategic insights,Winning solutions,and Use casessuccessful partnerships,innovations in payments,and technology trends Innovation for All:How AI and Blockchain Revolutionise Embedded Finance|Inte

15、rview with Michael Treacy,OpenPaydRedefining Payments with Embedded Banking and Clearing Services|Interview with Paul Staples,ClearBankSelecting the Right Partners for Your Embedded Finance Journey|Zilvinas Bareisis,CelentEmbedded Finance:Upgrading Online Marketplaces and Platforms|Interview with Ma

16、rius Galdikas,ConnectPayinnovations in travel,cross-border payments,and the gig EconomyUnderstanding Virtual Card Issuing Solutions:a New Era in Travel Payments|Damien Cramer,WorldlineEnsuring Last-Mile Collection:Building a Global Payment Network for Seamless Cross-Border Solutions|Ayowole Ayodele,

17、FincraThe Impact of Embedded Finance on the Gig Economy|Varun Mittal and Tawishi Singh,Fintech NationMaximising Financial and Operational EfficiencyHow Breaking Down Silos Fuels Growth Dont Suffer Silos in Silence|Matthijs Koorn,Coupa SoftwareHow Embedded Finance Is Transforming B2B Corporate Custom

18、er Experience|Manish Kohli,HSBCglobal mapping and infographic of players in Embedded Finance&baas 2024-2025IntroductionGlobal Mapping and Infographic of Players in Embedded Finance&Banking-as-a-Service3 6 7 9 11 12 17 21 22 23 24 26 28 30 32 33 35 37 39 40 42 44 45 46 Trends and Players Shaping the

19、Payments IndustryKey Market Trends and Future Outlook:Successfully Navigating the Path Ahead7THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Jovi Overo,Managing Director at Unlimits BaaS division,has over 20 years of experience in Fintech,Payments,Banking,and Lending-as-a-Service.He

20、 leads innovative BaaS solutions at Unlimit,a global fintech founded in 2009.Unlimit offers payment processing,multicurrency accounts,BaaS,and fiat solutions for crypto,DeFi,and GameFi.Jovi Overo Managing Director Unlimits BaaS divisionAlthough this field is still emerging,there are already many con

21、sumer-facing use cases for Embedded Finance,with innovation happening quickly.A simple way to categorise this space is by the various financial products and services that can be embedded.What are the major categories of Embedded Finance,and can you provide examples of b2c applications for each categ

22、ory?Embedded Finance can be segmented into several key categories,each with a unique B2C application case.In my opinion,these are Payments,Lending,Insurance,Banking,and Investment.If we look at payments,a great example would be solutions like integrated payment gateways within ecommerce platforms wh

23、ich enable seamless transactions,similar to how shopify incorporates payment systems directly into their merchant sites,simplifying the checkout process for consumers.In lending,an example of a B2C application would be platforms like Klarna,which offer point-of-sale financing,allowing consumers to m

24、ake purchases and pay in instalments,improving the shopping experience by providing immediate credit options.Looking at the insurance category,companies like Lemonade have revolutionised the landscape by embedding insurance services within other consumer platforms,offering on-the-spot coverage tailo

25、red to specific purchases,such as travel insurance offered during flight booking.Finally,platforms such as Robinhood have embedded investment services,allowing consumers to trade stocks and manage portfolios seamlessly through user-friendly mobile apps,making them an example of a B2C application for

26、 investment cases.Which specific industries and verticals currently benefit from embedding financial services,and which ones could benefit in the future?In my opinion,4 main verticals could currently really benefit from Embedded Finance-Retail,Healthcare,Travel and Hospitality,and Automotive.Looking

27、 ahead,sectors like Education and Real Estate could also greatly benefit from embedding financial services,UnlimitJoviOvero,ManagingDirectoratUnlimitsBaaSdivision,exploresindustriescurrentlybenefittingfromEmbeddedFinance,B2Cusecases,andregulatorychangesinthefintechsector.We plan to play a leading ro

28、le in the Embedded Finance sectors evolution,driving financial inclusion and fostering a more connected,efficient financial ecosystem for generations to come.8THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024providing students with better loan options,and making property transactions

29、 more reachable,achievable,and seamless.Definitely two key battleground areas for the younger demographics.What regulatory changes do you anticipate in the fintech industry,and how might they impact Embedded Finance?I believe that we can anticipate several changes in the future.First of all,I think

30、regulators are likely to increase scrutiny on data privacy and security,especially concerning how financial data is shared and stored within embedded systems.Improved consumer protection laws may be introduced to ensure transparency and fairness in lending and insurance practices.i also feel there w

31、ill be a push towards standardising fintech regulations across different regions,facilitating smoother cross-border financial services.one thing,in my opinion,is certain all changes implemented will be focused on driving greater trust and adoption of Embedded Finance,which might also increase compli

32、ance costs for providers.In what ways do you see financial inclusion being addressed through fintech innovations in the next years?Fintech innovations hold tremendous potential to advance financial inclusion in the coming years in several ways:Micro-lending and credit:platforms offering micro-loans

33、and alternative credit scoring can provide underserved populations with access to credit,helping them build financial stability.Mobile banking:expanding mobile banking services in emerging markets can bring financial services to the unbanked,offering them a safe and convenient way to save,transfer,a

34、nd invest money.Affordable insurance:embedding affordable insurance products into everyday transactions can protect low-income individuals from financial shocks,promoting economic resilience.By leveraging technology,fintech can bridge gaps in financial access,creating opportunities for millions who

35、are currently excluded from traditional financial systems.What is next for Unlimit in the coming five years?Unlimit BaaS has an exciting future focused on further growth and innovation.We aim to broaden our range of embedded financial services,offering more comprehensive solutions to meet diverse co

36、nsumer needs and expand our footprint even further on a global scale,particularly in emerging economies where there is a significant demand for fintech solutions.We will also continue to forge strategic partnerships with other tech companies,leveraging synergies to drive innovation and improve our s

37、ervice offerings.We plan to play a leading role in the Embedded Finance sectors evolution,driving financial inclusion and fostering a more connected,efficient financial ecosystem for generations to come.Click here for the company profile9THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2

38、024Embedded Finance Solutions Will Help Revolutionise Trade and Working CapitalVinay Mendonca is Managing Director,Embedded Finance for HSBC Commercial Banking.He has held Product,Transformation and Strategy leadership roles in India,Hong Kong,and the UK and was most recently Chief Growth Officer fo

39、r Global Trade Solutions(GTS).HSBC GTS harnesses the banks network,expertise,and solutions to help businesses navigate the constantly evolving landscape of global trade.Vinay Mendonca Managing Director,Embedded Finance HSBC Commercial BankingIn a digital age,customer expectations are rapidly evolvin

40、g.Were witnessing a profound shift in how our business customers operate,with a significant increase in direct-to-customer commerce taking place via ecommerce platforms and marketplaces.These changes underscore the demand for more seamless and integrated financial solutions.The boundaries between ec

41、ommerce,marketplaces,financial services,and lending are increasingly overlapping.Ecommerce platforms integrate banking products,while banks embed their solutions into these platforms.This convergence promises improved service and greater choice for customers,driven by the momentum in the market.Embe

42、dded Finance offers an important opportunity to embed financial services,such as payments and lending,into non-traditional financial platforms.This enables customers to access financing solutions with minimal friction at the point of need.Over the past year,HSBCs presence in Embedded Finance has bee

43、n steadily growing,driven by customers seeking convenient and efficient access to banking services where,and when,they need it.Businesses in supply chains have always required working capital,but recent disruptions and increasing complexity have raised the stakes.Embedded Finance is making the proce

44、ss of getting working capital solutions faster and easier for firms.Companies can apply for trade finance solutions within the same platforms they use to manage other business activities.Banks like HSBC can leverage real-time and historic transaction trading data from these platforms to make more ac

45、curate credit risk assessments and speed up decision-making.The transformative potential of Embedded Finance is most significant for SMEs and merchants engaged in online commerce.Traditional credit checks do not suit this fast-growing segment as they are less sophisticated and have limited informati

46、on and financial backing to meet the stringent asks of financing providers.HSBCFrom HSBCs perspective,the Embedded Finance opportunity aligns perfectly with our aim to meet our clients where they are:embedding financial services directly into the platforms they already use and trust.10THE PAYPERS|Em

47、bEddEd FinancE and banking-as-a-sErvicE rEport 2024by providing visibility into supply chain activities and leveraging real-time transactional data such as their sales patterns and payment histories banks can rely on a new dimension to assess risk and offer faster credit decisions and financing opti

48、ons that traditional credit assessments often overlook.This can potentially enable these SMEs to access financing they otherwise would not have had access to.This can help reduce the trade finance gap,which is estimated to be well over USD 1 trillion.For larger firms,Embedded Finance promises to str

49、eamline operations and drive cost efficiencies too.Corporate treasurers stand to benefit significantly from the automation and real-time insights that Embedded Finance solutions provide.By reducing manual processes and improving visibility and control over financial transactions,these solutions empo

50、wer treasurers to allocate resources strategically and respond promptly to evolving market dynamics.From HSBCs perspective,the Embedded Finance opportunity aligns perfectly with our aim to meet our clients where they are:embedding financial services directly into the platforms they already use and t

51、rust.We leverage our global scale and expertise in transaction banking to deploy specialised solutions through strategic partnerships,including with Tradeshift.This enables us to cater to the intricate needs of global supply chains,unlocking liquidity for SMEs,and fostering economic resilience.Finte

52、ch companies play a crucial role in this ecosystem;banks need to partner with platforms where customers engage to capture the significant wallet opportunity that Embedded Finance presents.despite the innovative solutions available,several factors hinder widespread adoption.access to data and credit

53、remains a challenge,as traditional credit checks fall short.While there are pockets of success,scaling these solutions requires banks to go beyond solely relying on digital adoption;SMEs often need support to become comfortable with new technologies,and this may require a hybrid model where human in

54、volvement supplements the embedded financing experience.Banks also need to transform their propositions to operate in the real-time digital world of ecommerce platforms,through the necessary technology tools and partnerships.Looking ahead,Embedded Finance appears set for continued growth and innovat

55、ion.As businesses embrace digital platforms for commerce and finance,the demand for embedded financial solutions is expected to surge.Whether through improving B2B marketplaces or facilitating consumer-facing applications,Embedded Finance has the potential to reshape financial ecosystems,democratise

56、 access to capital,and drive sustainable economic growth globally.Customer expectation is now set;its now a question of how banks respond.The rewards of embracing Embedded Finance from enhanced customer engagement to operational efficiencies are too significant to ignore.For banks willing to innovat

57、e and adapt,the journey toward a more integrated,accessible,and resilient financial ecosystem promises transformative outcomes and sustainable growth in the digital era.HSBCs presence in Embedded Finance has been steadily growing,driven by customers seeking convenient and efficient access to banking

58、 services where and when they need it.Trends and Players Shaping the Payments IndustryHow Embedded Finance Is Driving Growth and Unlocking Benefits for SaaS Platforms12THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Getting SaaSy with Embedded Finance:Changing the Game!Oana is a Lea

59、d Editor at The Paypers,driving the editorial vision for cutting-edge topics in Open Banking,Open Finance,Embedded Finance,and Banking-as-a-Service.She oversees content creation and coverage,conducts expert interviews,and moderates webinars and panels.Oana also represents The Paypers at key industry

60、 events and leads research and content production for major reports and projects.Oana Ifrim Lead Editor The PaypersFinancial services are becoming increasingly available through digital platforms where customers already spend their time what I like to call financialservicesatyourfingertips,anytime,a

61、nywhere.It became clear that banks are no longer the central institutions they once were in our communities.An increasing number of consumer apps now incorporate banking features,combining banking with everyday services.To exemplify,the Starbucks app allows customers to order and pay for coffee from

62、 their phones,speeding up and improving the process.shopify capital,for instance,is designed to provide loans directly from the shopify platform,helping ecommerce businesses scale.Business apps like QuickBooks allow customers to take care of payroll and vendor payments,and even access financing opti

63、ons without leaving the platform.These examples showcase the growing trend of incorporating banking and financial services into everyday digital platforms.The increasing hyper-localisation of finance will enable businesses to select the platform that best fits their type and preferences.They can acc

64、ess all essential financial features from a single platform,including accounts,payments,credit,automation,and many others.Embedded Finance:the winning strategy for Software-as-a-Service(SaaS)platformsLightyearCapitalestimatesthatEmbeddedFinancewillreachnearlyUSD230billioninrevenue by 2025.broader in

65、dustry analysis goes a step further,suggesting that EmbeddedFinancecouldbeworthUSD7trillionby2030,double the aggregate value of todays top 30 banks worldwide.TheSaaSsectorhaswholeheartedlyadoptedEmbeddedFinance.This trend first emerged in vertical markets industries like construction or fitness wher

66、e specialised SaaS solutions thrive.Unlike generic,horizontal SaaS platforms,vertical solutions cater to specific needs and offer customised financial services that banks often overlook.Because these platforms address niche requirements and build strong client relationships,businesses using vertical

67、 saas tend to consolidate their needs with a single provider,leading to growth and expansion within that suite of products.The PaypersWhile banking remains essential,traditional banks are no longer the only path to financial services.13THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 202

68、4Vertical software markets often favour a winner-take-most dynamic,where the leading vertical SaaS company that best addresses industry needs becomes dominant,offering both software and financial solutions.Early vertical SaaS companies like Mindbody,Toast,and Shopify began initially by reselling fin

69、ancial services such as payments.Today,they have evolved to embed a wider range of financial products,including loans,cards,and insurance,directly into their software platforms.Once a software solution proves its value,customers tend to consolidate their needs with that provider.For example,servicet

70、itan initially focused on software for home services but has since integrated financial products like payments and lending.From saas 1.0 to saas 3.0The SaaS environment has seen a lot of change over the past decade,evolving significantly.In its budding stage,SaaS 1.0 ruled the scene,providing person

71、alised solutions such as appointment scheduling on a subscription basis.the industry has since then progressed to SaaS 2.0,where platforms facilitate transactions,including customer payments.Currently,SaaS 3.0 marks the integration of Banking-as-a-Service(BaaS)solutions,enabling platforms to provide

72、 a full range of embedded financial services such as loans,savings accounts,and debit/credit cards.this evolution transforms saas platforms from simple service providers into comprehensive business solutions,improving user experience,creating new revenue streams,and expanding their overall value pro

73、position.For vertical SaaS platforms such as MindBody and Roofstock,Embedded Finance has proven to be a successful expansion strategy.Key benefits include:Solving pressing customer problems:faster instant payouts,access to credit,and improved business insights.Generatingsignificantnewrevenuestreams:

74、by incorporating financial services into their offerings.Improved customer retention:increasing customer loyalty through added value.Propositiondifferentiation:distinguishing their services from competitors.Uplifting saas revenue with Embedded FinancePrimarily,SaaS companies are expanding into finan

75、cial products to tap into new revenue streams.By offering more than just their core software,these providers can unlock additional revenue opportunities.Integrating fintech into SaaS businesses can significantly enhance their revenue potential;according to a16z,this integration can increase revenue

76、per customer by 2-5 times and unlock new SaaS markets previously inaccessible due to smaller software markets or inefficient customer acquisition.For instance,consider Square:when a merchant processes a card payment,the funds are deposited into their Square Checking Account,generating interest reven

77、ue.The merchant then uses their Square Checking Debit Card for purchases,which produces interchange revenue.additionally,if the merchant applies for and receives a business loan through square,it generates lending revenue.similarly,shopify provides embedded payment solutions that enable businesses t

78、o deposit funds into a shopify balance account,which earns interest.Shopify benefits from transaction fees,while offering additional financial services,such as loans,through Shopify Capital.These examples highlight how embedding financial services into SaaS platforms not only diversifies revenue str

79、eams but also improves customer engagement and opens new business opportunities.Embedded Finance is accessible to businesses of all shapes and sizes.Therein lies the beauty.14THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024the saas explosionNowadays,having strong software is a non-n

80、egotiable for any business looking to succeed.However,building and installing on-site software requires resources that most companies and startups dont have.Luckily,strong and effective software is now just a click away,thanks to the emergence of cloud tech and the expansion of the internet.Withover

81、30,800playersservingmillionsofpeopleglobally,theSaaSindustryexperiencedaboom.in 2024,70%of company software use is delivered via saas,and the numbers are projected to rise to 85%by next year.the charts are led by the Us,with 17.000 saas providers,followed by the Uk,canada,germany,France,and india.ac

82、cording to VerifiedMarketResearch,the worldwide SaaS market size was valued at USD 237.51 billion in 2023,and it is expected to reach Usd 908.24 billion by 2030,growing at a cagr of 18.7%.the same research showcases that the saas industry is growing due to the increasing demand for cloud-based solut

83、ions and the surge in mobile device adoption.Furthermore,cost-effectiveness,easy deployment,and scalability lead to the markets expansion.the report states that,due to the rise of smEs and cloud-based tech in the region,the apac area is forecasted to have the highest growth rate soon.However,North A

84、merica and Europe should retain their market share leader positions thanks to their numerous and established saas providers.Ascendix forecasts 72,000 SaaS companies by the end of 2024,rising to 175,000 with AI firms included.These companies span diverse sectors like productivity,customer service,mar

85、keting,and finance.boosting digital transformation for small businesses via saasThe increasing dissatisfaction of SMEs over their financial management is rooted in having to juggle finances across multiple apps and services.This fragmentation leads to delays such as up to five business days for fund

86、s from sales to be reflected in bank accounts challenges in securing financing,high transaction costs,inefficient invoice management,and limited financial insights.Compliance and security concerns further compound the difficulties businesses without integrated solutions face.Research underscores the

87、se frustrations and the inadequacies of traditional financial services.According to Aperture,traditional banks often fall short in meeting the specific needs of SMEs and freelancers,with only a small percentage of these businesses fully satisfied with their banking relationships.In response,B2B BaaS

88、 providers are emerging as a viable alternative,offering integrated financial services within software platforms or marketplaces to address these needs better.A survey of 1,200 SME operators and freelancers across Europe highlights a strong preference for financial services seamlessly embedded in fa

89、miliar,non-financial plementing this,airwallex,in collaboration with Edgar,dunn&company,surveyed1,000SMBs across five countries and interviewed leading software platforms to explore the global demand for embedded financial services.The survey found that,while 83%of SMBs are interested in accessing f

90、inancial services through their software platforms,only 9%currently use such options.Most retail SMBs(87%)find banks inadequate for their financial needs,and 76%would pay extra for a unified platform offering multiple financial services.This gap presents a significant opportunity for fintech compani

91、es to integrate financial solutions and capture a growing market.SMBs are increasingly opting for expense management solutions that streamline workflows with features like global payouts,employee cards,and automated reconciliation,which helps attract and retain customers on a global scale.15THE PAYP

92、ERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024similarly,a report from Unit indicates that 84%of small business owners are open to obtaining financial services from non-traditional providers,such as software or technology companies,due to the lack of a unified platform in traditional banki

93、ng.MarketresearchfromSwan further supports this shift,showing that 85%of smEs in France,germany,spain,and the Netherlands are open to embedded financial services from non-financial companies.This dissatisfaction with traditional financial services and preference for integrated banking products from

94、trusted brands underscores a significant opportunity for vertical SaaS providers and marketplaces to offer these much-needed financial products.Payments in SaaS:a strategic advantageMcKinsey shows that small businesses using non-SaaS payment providers are nearly three times more likely to switch to

95、SaaS payment solutions in 2025 compared to those already using SaaS providers who might switch to a different SaaS provider.As more SMBs adopt ISV(Independent Software Vendor)and SaaS solutions for their operations,integrating embedded payments becomes a crucial strategy for retaining customers.many

96、 vertical saas companies wait until their core business is established before monetising payments.For instance,servicetitan and shopify initially focused on their core software solutions and later integrated payment services.Companies such as Square,Coupa,ServiceTitan,Shopify,and Wix have effectivel

97、y expanded their offerings by incorporating financial products into their services.By partnering with payment service providers(PSPs)like Stripe or becoming payment facilitators(PayFacs),these companies improve their customer lifetime value(LTV)and extend their service portfolios to include payments

98、,issuing,and lending.a common approach is to resell or white-label payment services from psps.However,thismodelcanbechallengingtomonetise,asaddingmark-upfeesoftenresultsinhighercostsforcustomers.success with this strategy typically requires high transaction volumes,enabling companies to negotiate be

99、tter rates with their PSP,as exemplified by Shopify.Alternatively,some businesses choose to embed payment processing directly and become payFacs.PayFacs manage the full payment process,includingrisksandoperations,andcancapture0.75-1%ofthetransactionvolume.While this method offers more direct benefit

100、s from payment processing,it demands a significant commitment to managing the payment infrastructure.according to Flagship advisory partners,embedded payins in saas platforms are now the top method for payments in the Us,with Europe following suit.saas and isv solutions handle over 50%of smb ecommer

101、ce transactions and about 25%of in-person payments in the US,the EU,and the UK.This trend is set to grow as businesses shift from traditional banks and PSPs.Payouts for things like gig-worker compensation are also gaining importance,offering new revenue opportunities,especially for urgent or cross-b

102、order needs.Vertical SaaS platforms and business services platforms can improve their offerings by integrating payment functionalities.b2b platforms are increasingly embedding payment processing to streamline transactions and generate additional revenue.Embedded Finance proves to be a game-changer,o

103、ffering faster payouts,better credit access,and valuable insights while boosting revenue,retention,and differentiation.16THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Lending and financing Historically,SaaS companies referred customers to lenders like Kabbage or Lending Club for a

104、 referral fee.Now,they are embedding lending programmes directly into their platforms by partnering with banks and managing data integration for loan underwriting and servicing.this shift enables saas platforms to leverage insights from customer performance and sales trends to make informed lending

105、decisions and automate repayments.Providing financing helps customers grow,which,in turn,boosts transaction volumes and creates new opportunities for saas providers.Shopify,for instance,has been providing working capital through Shopify Capital since 2016.InQ42021,ShopifyCapitaladvancedoverUSD324mil

106、lion,an increase of 43%versus the USD 226.9 million funded in Q4 2020.This strong performance continued into early 2023,with Shopifys business lending and merchant cash advance division originating a substantial USD 477millioninQ1.Shopify began offering lending products to merchants because they had

107、 the data to assist with underwriting and knew that many merchants had to go through the painful process of securing a loan at a traditional bank.insuranceVertical SaaS companies are increasingly incorporating insurance services into their offerings,tailored to specific industries.For instance,a Saa

108、S platform designed for restaurants might offer embedded insurance solutions like general liability and workers compensation.this integration leverages data collected by the saas platform to enhance insurance underwriting and pricing.For instance,a construction management SaaS can use detailed proje

109、ct data to better assess risks and price insurance more accurately,leading to more customised and potentially lower-cost coverage.initially,saas companies may earn referral fees from insurance providers.However,as they integrate insurance more deeply into their platforms,they can transition to earni

110、ng a percentage of the premiums sold.this shift not only generates a new revenue stream but also adds significant value to their core SaaS offering.Examples include Buildertrend,which integrates insurance for construction projects based on detailed data,and Procore,which offers tailored insurance op

111、tions for construction firms.Expense cardsExpense cards offer software platforms a chance to boost service offerings and revenue.By letting customers issue these cards to employees,platforms can provide better financial control with customisable spending limits and tracking features.Platforms benefi

112、t financially through interchange revenue,earning a percentage from each card transaction.This does not only create a steady income stream but also integrates well with their core financial services.adding expense reporting features directly into the platform increases value,allowing businesses to m

113、anage expenses in real time.This integration can also lead to additional fees or premium package options for the provider.conclusionIntegrating financial services into SaaS platforms is transforming the industry,enabling providers to offer comprehensive solutions that combine software with banking,p

114、ayments,and more.This shift simplifies financial management for businesses and opens new revenue streams for SaaS companies.As Embedded Finance continues to evolve,its clear that the next wave of SaaS innovation will be defined by how effectively platforms can leverage these financial services to im

115、prove their offerings and drive growth.The future of SaaS is not just about delivering software its about creating integrated,all-in-one solutions that redefine how businesses manage their finances and scale their operations.17THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Embedded

116、 Payouts Will Follow the Success of Embedded Payins as the Next Frontier in Embedded FinanceFlagship Advisory Partners is a boutique strategy consultancy and M&A advisory firm specialising in payments and fintech.With a team of 30 experts,we handle over 80 engagements annually,leveraging deep expert

117、ise,practical experience,a strong track record,unique IP,and cutting-edge insights.Erik,Partner at Flagship,brings over 23 years of experience as a payments specialist and is a leading advisor on Embedded Finance,payments processing,issuing,and consumer lending,having advised 100+global clients.Erik

118、Howell Partner Flagship Advisory PartnersIn the evolving landscape of Embedded Finance,payins and payouts embedded within Software-as-a-Service(SaaS)platforms have been pivotal in streamlining financial transactions for businesses and consumers alike.payins refer to the mechanism through which funds

119、 are received by a saas platform,encompassing payments acceptance from customers or users for services rendered.conversely,payouts are the processes in which funds are disbursed from the software platform this can be B2C or B2B;example use cases include(but are not limited to)gambling payouts,gig-wo

120、rker compensation,benefits payouts,corporate travel,and supplier payments.Integrating payin and payout functionality into existing SaaS applications does not only improve user experience but also ensures seamless and efficient financial flows for businesses.Embedded payins dominate the US SaaS marke

121、t,Europe quickly following suit payins embedded into saas have grown to be the largest distribution channel for payments acceptance in the Us,and Europe is rapidly shifting the distribution of payments acceptance to saas as well.saas/isv payment channels facilitate most small and medium-sized busine

122、ss payments in the EU,the US,and the UK,relative to alternative payment channels such as banks,PSPs,and ISOs.More specifically,over fifty percent of SMB ecommerce transactions rely on ISV/SaaS,and about a quarter of in-person transactions.These figures are only expected to grow as more and more busi

123、nesses shift from banks,PSPs,and isos to saas/isvs for payment facilitation.(Figure 1)Flagship Advisory Partners18THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024the monetisation opportunity for embedded payments acceptance is massiveIn the US,the prevailing small and medium busines

124、s net take rates for embedded payins are roughly 0.75%,and about 0.65%in the EU/the Uk(Figure 2).additionally,the share of economics earned by saas/isv providers varies with the scale of average annual volume,ranging from 40%to 85%in the Us,and 30%to 75%in the EU/the Uk.notably,it is less common for

125、 saas companies to operate at high volumes in the EU/the Uk than in the Us.operating models as monetisation opportunitiesMany SaaS platforms currently embed payment acceptance using a simple referral model,whereby they refer customers(in some shape or form)to third-party payment processors and earn

126、commission on each transaction.However,there is a growing shift towards Payfac Lite as SaaS platforms seek greater monetisation opportunities.For those operating at a very large scale,adopting a full Payfac model becomes more common.The transition from the Referral model to Payfac Lite reflects a tr

127、end toward improved revenue generation.(Figure 3)19THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024adoption of embedded payments within saas platforms in Europe is risingin the Us,embedded payments acceptance is maturing,yet significant opportunities remain in smaller,niche vertical

128、s.In contrast,Europes embedded payments landscape is less developed,presenting a more greenfield opportunity for growth.However,geographic fragmentation and smaller-scale markets pose challenges for widespread adoption in Europe.Despite these obstacles,Europe is expected to follow the US pattern,gra

129、dually adopting embedded payments acceptance,making it an interesting opportunity.(Refer to figure 4)Embedded payouts are the next frontier in embedded payments Whereas embedded payins have relatively obvious use cases across multiple verticals,not all embedded payout use cases have high-value poten

130、tial.B2C payout use cases that provide a strong fintech monetisation opportunity are higher in value because they meet one of the following criteria:1.Urgent timing;2.Cross-border;3.Recipient is under-banked;4.Integration of the payment into a broader automated workflow;5.the payment needs to be tig

131、htly controlled.20THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Four trends propelling growth in embedded payoutsWhile embedded payins are relatively mature,embedded payouts are still in their nascent stages,holding significant promise for businesses.1.SaaS-embedded acceptance has

132、 been an exceptional success.Now that it is maturing,platforms and PSPs are looking for the next Embedded Finance opportunity.2.payouts,especially those facilitated through card-based payment methods,are highly monetisable.3.penetration of software and other platform types capable of embedding payme

133、nts continues to expand,along with the diversity of use cases supported by these platforms.4.the supply of embedded payout services and operating models will continue to grow and mature.Unlocking new revenue streamsOperating models for embedded payouts are similar to those of embedded payins,offerin

134、g a range of solutions from turnkey to customised.These models create opportunities for SaaS platforms to achieve monetisation with relatively low effort by integrating payout capabilities.By offering diverse payout solutions tailored to various business needs,Embedded Finance providers can unlock n

135、ew revenue streams.This adaptability empowers SaaS platforms to effectively meet a wide range of client demands,thereby bolstering their market influence and profitability.(Refer to Figure 7 for more details on these strategies)Europes most senior payments event20-21 NOVEMBER 2024SUGARFACTORY,AMSTER

136、DAMM ONEY L IVE-INSIGH TS.COM/EVENTS/PAYM ENT SJoin 500+payments leaders for two days of high-impact networking and unparalleled insights from a world-class speaker line-up.Save 10%on delegate passes with promo code PAYPERS10TRISTAN KIRCHNERCHIEF EXECUTIVE OFFICER,UBER PAYMENTS BVTrends and Players

137、Shaping the Payments IndustryStrategic Insights,Winning Solutions,and Use CasesTrends and Players Shaping the Payments IndustrySuccessful Partnerships,Innovations in Payments,and Technology Trends24THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Michael Treacy is the Head of Marketi

138、ng at OpenPayd,a global provider of Embedded Finance infrastructure.He has over a decade of experience working across growth,go-to-market,and commercial functions at high-growth fintechs and has developed deep industry knowledge across payments.Michael Treacy Head of Marketing OpenPayddigital transf

139、ormation is a common term across all industries.How does this relate to Embedding Payments?Which industries are leading in this innovation,and what does it look like?Theres no question that in recent years weve seen a significant acceleration in digital transformation,particularly when it comes to a

140、rtificial intelligence(AI)and blockchain.Blockchain is having a huge impact on how we move and manage value,but in many cases such as crypto for that to have any real impact on the everyday consumer,there needs to be fiat on-ramp/off-ramp services attached.Thats where Embedded Payments come in,helpi

141、ng those services bridge that gap through a seamless user experience.Speaking more broadly,AI and blockchain are both creating thousands of new businesses each year,leading to entirely new industries.For these industries to grow and succeed,they need to monetise their services,and Embedded Finance i

142、s the most powerful way for them to do that.How do technologies like AI and blockchain enable new and outstanding use cases in customer payments via Embedded Finance?can you provide some examples?One example that stands out is cross-border payments.Blockchain makes global payments faster and cheaper

143、,and stablecoins provide these benefits without crypto price volatility.For this,an Embedded Finance provider with global reach is needed to convert fiat to stablecoin and back to fiat.AI enhances compliance and fraud monitoring,ensuring funds are secure by helping teams perform thorough checks.Tech

144、nological advancements often focus on faster and slicker,but in this case,they also mean safer and more secure.Is embedding financial infrastructure at the enterprise level limited to startups,or are larger companies also innovating in this space?Today,its larger companies that can benefit most from

145、 Embedded Finance.The larger your business operations and revenues,the more costly payments and banking can become.OpenPaydMichaelTreacy,HeadofMarketingatOpenPayd,exploresthetransformativeimpactofartificialintelligenceandblockchainonEmbeddedFinance.Embedded Finance helps businesses monetise their pa

146、yment flows in various ways,turning a cost centre for the business into a leading revenue stream.25THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024The challenge for larger businesses adopting new technologies often lies in their lack of agility and legacy infrastructure.That is why

147、those capturing the Embedded Finance opportunity today are digital-first,technology-focussed brands.In the coming years,if your business doesnt fit this description,its unlikely that it will be around for too long.What steps(technologies to adopt)should big businesses take to join the Embedded Finan

148、ce trend?Embedded Finance drives digital business growth when aligned with company vision and integrated seamlessly rather than as a standalone service.Understanding customer insights and leveraging existing data are crucial for enhancing user experiences and identifying growth opportunities.success

149、 hinges on clear objectives,adequate talent,tech resources,regulatory compliance,and effective market strategies.Partnering with the right experts,like OpenPayd,ensures robust support throughout the process.What obstacles might prevent them from adopting Embedded Finance?Financial services is a high

150、ly regulated industry and so it should be.When it comes to handling peoples money there arent any shortcuts to be taken.Without the right expertise,governance,and infrastructure,you simply cannot adopt Embedded Finance.At OpenPayd we talk about our infrastructure in two parts:technology and licencin

151、g.Having a strong approach to compliance and regulation is where businesses can build their competitive edge.What are the main benefits that businesses can gain from Embedded Finance?OpenPayd commissioned a study which examined the attitudes towards Embedded Finance from businesses in a variety of i

152、ndustries.Retaining the front-end customer experience was a benefit that most respondents were interested in,with 85%classifying it as very appealing or appealing.increasing the number of customer touch points with the brand was another factor that business leaders clearly want,with 84%of respondent

153、s deeming it either very appealing or appealing.Then theres revenue.Businesses can completely transform the operational costs and add new revenue streams,all whilst providing a better customer experience.it really is a no-brainer.How can companies like OpenPayd facilitate this transformation?OpenPay

154、d is the leading provider of infrastructure for embedded financial services.Today we proudly serve more than 450 businesses who trust us to move and manage billions of euros every single month.With a single api,these businesses gain access to a full suite of financial services infrastructure thats r

155、eady to be embedded in their own customer experience.This technology,alongside our licencing infrastructure,will enable the next generation of digital businesses to launch their own financial services and ultimately power the growth of the digital economy.Click here for the company profile26THE PAYP

156、ERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024ClearBankPaul Staples is Group Head of Embedded Banking at ClearBank,the enabler of real-time clearing and Embedded Banking for financial institutions,where he oversees the proposition development enabling customers to use its infrastructure t

157、o build new products and services.Paul Staples Group Head of Embedded Banking ClearBankWhat solutions do you offer,and for whom?What is the value that you offer to your customers?ClearBank is a purpose-built,technology-first clearing bank providing faster,safer,more reliable banking infrastructure.I

158、t was the first new,full-service clearing bank in the UK for more than 250 years.It was founded on the core principle of innovation.The bank itself has evolved from an agency banking partner to a BaaS partner and today,a leading preferred Embedded Banking partner.Through its banking licence and inte

159、lligent,robust technology solutions such as its API which integrates with a clients operating system,ClearBank enables institutions to offer real-time payment and innovative banking services to their customers.ClearBank is the only fintech bank that delivers direct access to all bank payment schemes

160、 including Bacs,cheques,CHAPS and Faster Payments,all allowing transactions to clear rapidly and over a secure platform as well as offering Financial Services Compensation Scheme protected bank accounts.As well as Agency Banking,ClearBank offers Embedded Banking;enabling regulated financial institut

161、ions to use ClearBanks licence to offer fully-regulated accounts and savings products,without incurring the cost of becoming a bank themselves.What are the current vulnerabilities in the global banking system?What common challenges do your clients face,and how is ClearBank addressing these?There is

162、a lot of noise about Embedded Banking and BaaS,arguably because of poor definitions but also because of misunderstandings of the roles that participants play.PaulStaples,GroupHeadofEmbeddedBankingatClearBank,discusseshowEmbeddedFinanceaddressesbusinesschallengesacrosssectorsanddetailsClearBanksrolei

163、ntheecosystem.27THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024The landscape has broadened,with Embedded Banking players picking niches,functions and sectors.ClearBank is the infrastructure and bedrock on which banking innovation is built for all of these and allows the experts to

164、find their space.The industry is now at an inflection point where compliance,risk and resilience are the most paramount factors in Embedded Banking providers.Developments and trends to be aware of include:the industry is nervous because of Us consent orders.the Emi model that is popular in Europe co

165、mes with limitations and is also under the regulatory microscope.BaaS providers are pivoting business models to work only with banks.Banks with BaaS have struggled with the new business model.Having a bank license is just a starter.Operating it in the name and spirit of the law/regulations is now wh

166、ats key.ClearBank was founded to address that gap in the market around reducing friction in clearing and allowing for greater innovation for fintechs.It set out to remove the barriers in banking for pioneering fintechs,and enable them to integrate innovative banking services without the cost and com

167、plexity of acquiring a banking licence.ClearBanks Embedded Banking proposition came when banking infrastructure slowed down meaningful progress.Opening and managing accounts was tedious and clearing payments in real time was impossible.ClearBank realised that each client needed individual banking pr

168、oducts and new propositions that they could,in turn,take to their customers through a model where those clients leverage our banking licence and embed bank-grade processes for onboarding,kYc and ongoing due diligence.What are the benefits and differentiators of working with ClearBank,and in what are

169、as are these benefits most visible?Through our banking licence and innovative financial technology,we enable financial institutions to offer secure accounts,clear payments in real-time and enhance their banking propositions for their customers.Technology is the cornerstone of ClearBanks offering and

170、 out of the companys total employees today,around 20%are software engineers.All the IP ClearBank uses is owned and built by its team.With a consant flux of regulatory requirements underpinning financial transactions,the industry demands an agile platform like ClearBanks which ensures compliance and

171、best-in-class delivery.ClearBank delivers a resilient,financially sustainable,and low-risk proposition,never lending any customer funds to third parties and all sterling deposits held securely at the Bank of England.It offers the stability and security of a fully regulated bank and the agility and t

172、echnology-first model of nonbank providers.Our latest report,The Total Economic Impact Of ClearBank Embedded Banking,produced in collaboration with Forrester,examined the return on investment(ROI)firms can realise with our Embedded Banking proposition.can you provide some examples of successful part

173、nerships or success stories?ClearBanks combination of fully licenced banking services and innovative financial technology has allowed it to grow across every segment and business line,attracting high-profile customers including Raisin and Tide as well as enabling the launch of a market-leading Cash

174、ISA product with its Embedded Banking partner,Chip.As ClearBanks first three Embedded Banking customers,Tide,Chip,and Raisin,saw an average transaction volume exceeding 10 million per month in 2023 and 1.2 million customers now hold FSCS-protected accounts through them.ClearBanks model enables highl

175、y competitive interest rates to be passed along to embedded banking clients customers.Click here for the company profile28THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Selecting the Right Partners for Your Embedded Finance Journey Zil leads the Retail Banking and Payments practice

176、 at Celent,a research and advisory firm helping financial services executives make confident technology strategy decisions.With over 25 years of experience,Zils research focuses on the impact of technology-driven change in banking,with an emphasis on consumer payments,digital identity,and the open f

177、inancial services ecosystem.Zilvinas Bareisis Head of Retail Banking and Payments CelentEmbedded Finance enabling third parties to provide financial services is not a new phenomenon.Most are familiar with the idea of buying car insurance or arranging financing through a car dealer.Whats different no

178、w is that customer experiences have gone digital;and the advances in technology cloud-native,microservices-based,event-driven,composable architectures,accessible via APIs make it much easier for companies to collaborate and rapidly develop those new digital experiences.What hasnt changed though is t

179、he need for regulatory compliance and robust partnership frameworks.Embedded Finance:the teenage yearsthe early days of Embedded Finance saw the proliferation of new entrants aiming to combine their technology capabilities with the bank partners or in some cases,their own regulatory license to offer

180、 Bank in a Box or Banking-as-a-Service.However,some of them had a relatively lax approach to compliance and partner management,which attracted regulatory scrutiny,leading to consent orders(e.g.,Blue Ridge Bank,US),restrictions(e.g.,Solaris,Germany),and in some cases,bankruptcy(e.g.,Synapse,US)of the

181、 newcomers.That is now clearly changing,and while its too early to call the Embedded Finance market mature,the players are adopting much more sophisticated attitudes to compliance and partnerships.the role of Emis in a highly interconnected ecosystemOne of the defining characteristics of the Europea

182、n fintech scene over the last decade or so has been the growth of Electronic Money Institutions(EMIs).While EMIs are not banks,they are regulated institutions,and their services can be bank-like in many respects.EMIs today support a wide range of different products and services,sometimes serving the

183、ir end customers directly,or by offering technical capabilities for fintechs,challengers,and other providers to serve their customers.It may seem like banks,EMIs,and various fintechs are direct competitors;however,the reality is more nuanced(Figure 1).On the one hand,these providers often compete fo

184、r customers and engagement.However,this is also a highly connected ecosystem in which the services provided by banks are fundamental to the ability of EMIs,fintechs,and other challengers to operate.For example,the regulators require that all customer funds kept with EMIs must be safeguarded,typicall

185、y by banks.That means there must be a mechanism which would ensure that should an EMI(or fintech client of an EMI)fail,customer funds should be returned in full.Celent estimates that the customer funds safeguarded by EMIs in the EU and the UK almost doubled in a period of four years(2019-2022),to re

186、ach over EUr 35 billion in 2022.Celent29THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Figure1:Relationshipsbetweenbanks,EMIs,fintechs,andendcustomersSource:Celentthe hierarchy of partner selection criteriaAs the EMI segment continues to mature,it represents a growing opportunity f

187、or banks to increase revenues and exposure in this dynamic market.However,as banks and EMIs/fintechs seek to collaborate,their attempts at partnerships can be frustrating for both sides,from finding each other and performing partner due diligence,to agreeing to an engagement framework,to ensuring ap

188、propriate ongoing management and oversight.celent conducted an industry research study exploring various aspects of Embedded Finance partnerships.The study was commissioned by ClearBank and the findings were first published in a report written independently by Celent.Among the questions we explored

189、was what partners are looking for from each other at the selection stage.We found that there was a hierarchy of selection criteria,akin to Maslows hierarchy of needs.(See Figure 2.)The American psychologist Abraham maslow claimed that human needs can be arranged in a hierarchy.the basic needssuch as

190、 food,water,safety,and securitylie at the base of the pyramid,and need to be met first,before the person becomes motivated by other concerns.Similarly,when considering partnerships,essential criteria,such as alignment around product and risk appetite come first.Only then,the commercial discussions a

191、round technical and support capabilities or pricing can take place.Figure2:MaslowshierarchyofneedsandCelentshierarchyofpartnerselectioncriteriaSource:CelentAs the European Embedded Finance market continues to evolve,we expect more collaboration between EMIs and banks.EMIs can:Help banks align with r

192、isk appetite by insulating them from unregulated entities.Bring relevant technology capabilitiesespecially solutions that are tailored for specific industries.Offer(some)banks the opportunity to capture a share of EUR 35 billion deposits in the UK and EU that need safeguarding.We live in an age of c

193、oopetition,with the same entities vying in one area,while cooperating in another.This is true for the UK and European banks and Emis,which can be both competitors and partners when capturing the Embedded Finance opportunity.30THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Marius Ga

194、ldikas,CEO of ConnectPay,has extensive experience in digital product development and business growth.An all-in-one financial platform for online businesses,ConnectPay offers embedded financial solutions with built-in compliance;its modules include SEPA and SWIFT payments,multiple currencies,IBAN acc

195、ounts,wallets,Banking-as-a-Service,and merchant services.MariusGaldikas CEO ConnectPayWhich businesses/verticals can benefit the most from Embedded Finance,and what types of problems can it help solve?Embedded Finance can benefit any business that engages in frequent transactions and therefore requi

196、res access to reliable and streamlined financial processes.For instance,online B2B2B and B2B2C platforms can use integrated payment solutions to simplify transactions between vendors and buyers,while crowdfunding platforms can use embedded financial tools to efficiently manage contributions and the

197、distribution of funds.Embedded Finance can also help solve problems related to traditional banking limitations.Neobanks and fintech companies,for example,can utilise Embedded Finance to offer tailored financial products that traditional banks may not provide,such as microloans or specialised insuran

198、ce products.in all cases,Embedded Finance can help ensure that businesses adhere to strict compliance regulations while providing a seamless financial experience for their users.When financial services come with built-in compliance,businesses can rest assured that compliance is being taken care of f

199、or them,allowing them to focus on what they do best,scaling their business and streamlining their operations.What role does connectpay play in Embedded Finance,and who is your target group?ConnectPay is an enabler of Embedded Finance,offering financial solutions with built-in compliance for online b

200、usinesses,mostly focusing on marketplaces and platforms.As an all-in-one financial services platform,we give our clients the ability to choose financial modules tailored to their specific operational payment needs,eliminating the necessity to have multiple financial solutions providers.ConnectPayWhe

201、n financial services come with built-in compliance,businesses can rest assured that compliance is being taken care of for them,allowing them to focus on what they do best,scaling their business and streamlining their operations.MariusGaldikas,CEOofConnectPay,anall-in-onefinancialplatformforonlinebus

202、inesses,sharesinsightsonthekeybeneficiariesofEmbeddedFinanceandsuccessfulimplementationexamples.31THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024through one api,clients gain access to fast,omnichannel solutions,including multicurrency accounts,sEpa and sWiFt payments,currency excha

203、nge,and white-label cards.Our target group is quite broad and includes diverse e-businesses that could benefit from our offer of integrated financial solutions rather than scattered products.Specifically,we focus on B2B2B and B2B2C online businesses,platforms,and marketplaces.These include crowdfund

204、ing platforms,retail businesses,loyalty programmes,neobanks,and fintechs.We also cater to sports clubs with dedicated fan bases,like football and basketball clubs,who use digital platforms to improve fan engagement and streamline transactions during events.can you provide examples of successful impl

205、ementations or use cases of Embedded Finance that have significantly improved user satisfaction and engagement?Embedded Finance can improve user engagement and overall experience across a wide range of industries.a good example is one of the most recent cases we worked on with BeMyBond,a bond crowdf

206、unding platform that aims to make bond investing accessible and straightforward.Their main challenge was ensuring smooth and compliant payment flows between investors and the issuer while providing a unified transaction experience for users.By integrating our solution with built-in compliance and a

207、single set of detailed APIs,the platform simplified the customer onboarding process to 8 seconds,eliminating any unnecessary steps.As a result,406 new customers were onboarded during the first couple of days of platform launch,each receiving IBAN accounts.Additionally,the company can now offer tailo

208、red solutions directly to end customers.another practical example could be our integration with Softloans,an embedded lending solution that businesses can integrate into their own platforms to offer revenue-based loans to their merchants.To allow their lending solution to be easily embedded into oth

209、er businesses platforms,Softloans leveraged Embedded Finance to facilitate seamless access to merchant accounts,balance notifications,and streamlined payment processes.To add,because our EF solutions have built-in compliance,the company can reduce the risk of bad debts and improve operational effici

210、ency,too.Besides our cases,more examples can be found in non-financial industries as well.In the sports sector,for instance,digital wallets,like the one offered by the Minnesota Gophers,are improving fan experiences by offering convenient platforms for receiving team news,tracking stats and scores,a

211、nd purchasing tickets and merchandise.The F1 Paddock Club digital wallet takes this innovation a step further,allowing fans to collect points for their interactions and redeem them for merchandise and vip experiences.The food and beverage industry has used Embedded Finance to offer hyper-personalise

212、d loyalty programs.Starbucks,for example,has integrated a digital wallet into its mobile app,offering features like easy payments,balance reloads,and a rewards programme,all accessible in an easy-to-use interface.Overall,Embedded Finance transforms industries by integrating financial services direct

213、ly into platforms,streamlining transactions,enhancing user engagement,and providing tailored financial solutions that address traditional banking limitations.Click here for the company profileTrends and Players Shaping the Payments IndustryInnovations in Travel,Cross-Border Payments,and the Gig Econ

214、omy33THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Understanding Virtual Card Issuing Solutions:a New Era in Travel PaymentsDamien Cramer is Director of Travel and Airlines at Worldline.He and his team are focused on supporting global travel businesses to increase their market cov

215、erage,improve their customers payment experience and ultimately help them grow in a sustainable and effective way.Worldline accelerates growth for over one million businesses with advanced payment technology.Damien Cramer Director of Travel and Airlines WorldlineVirtual card payout solutions are rap

216、idly transforming the travel and leisure payment landscape.The travel industry,known for its complex,high-value transactions across multiple currencies and numerous intermediaries like online travel agencies,airlines,and hotels,finds an ideal match in virtual card solutions.These solutions provide a

217、 significant leap forward by improving security,efficiency,and control over financial transactions.Experts predict globalvirtualcardspendingwillsurgeby355%in2028,rising from Usd 3.1 trillion in 2023,highlighting the swift adoption and profound impact of this technology.by leveraging the power of vir

218、tual cards,travel intermediaries,suppliers,and consumers can all experience a smoother,more secure journey.the mechanics behind virtual cardsVirtual card payout solutions enable secure and efficient payments between travel intermediaries(such as OTAs(Online Travel Agencies)and service providers such

219、 as hotels,airlines,and car rental companies.Unlike traditional methods that transfer consumer card details through multiple suppliers,virtual cards use a 16-digit number with an expiry date,limited to specific transactions.this controlled use ensures the card can only be used for designated supplie

220、rs,amounts,and dates,therefore increasing security and reducing fraud.Virtual cards operate like physical cards but are tailored for single or restricted-use transactions.For example,a virtual card issued for a EUR 500 hotel booking can only be used for that specific hotel and amount,which in turn p

221、revents misuse.Travel agencies are increasingly adopting virtual cards to become merchants of record,taking ownership of the customer relationship and streamlining the payment process from customer to service provider.psps at the forefrontPayment Service Providers(PSPs)have traditionally focused on

222、enabling secure and efficient transaction acceptance.However,their role has expanded substantially and now encompasses end-to-end payment processing,including both acceptance and payout Worldline34THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024services.This dual functionality offer

223、s a seamless payment experience,reducing cash flow mismatches and reconciliation challenges.by integrating virtual card issuance into their services,psps can manage the entire payment cycle from customer payments to supplier payouts thereby boosting operational efficiency and security.tailored for t

224、ravelThe travel intermediary market is ideal for virtual card payout solutions due to the high complexity and volume of transactions it handles.They can bundle various travel services into cohesive packages for consumers.By using virtual card payouts,they can streamline payment processes,improve cas

225、h flow management,and minimise financial risks.A virtual card-issuing solution can also simplify reconciliation,providing better visibility and control over transactions.Additionally,offering a comprehensive payment service makes travel intermediaries more attractive to consumers,who enjoy a persona

226、lly tailored,seamless,and secure booking experience.Who gains the most?Virtual card payout solutions offer substantial benefits to multiple stakeholders within the travel industry.Travel intermediaries such as OTAs and travel agencies enjoy reduced complexity,improved cash flow,and enhanced security

227、.Consumers benefit from a seamless booking experience,assured that their financial data is safe.Additionally,travel suppliers receive timely and secure payments,ensuring smooth service delivery without financial setbacks.This integrated approach forms a robust safety net,protecting everyone from pot

228、ential financial disruptions.In a research study by Worldline and Phocuswright,90%of travel planners surveyed expect virtual cards to become the dominant approach to booking corporate travel.The goal of virtual corporate cards in business travel is to automate time-consuming expense tracking.Compani

229、es can create virtual corporate cards in just a few clicks,making funds instantly available to employees who need them for travel.virtual payment cards give organisations real-time visibility into spending.In addition,spending data can be integrated with accounting systems,making settlement faster a

230、nd easier while also removing human error.an industry game changerVirtual card payout solutions herald a significant transformation in the travel and leisure industry.By providing a cohesive and secure payment process,these solutions tackle long-standing issues such as cash flow management,reconcili

231、ation challenges,and financial risk exposure.Integrating payment acceptance and payout services results in a more efficient and transparent financial ecosystem.As the market expands and evolves,adopting virtual card solutions will become standard practice,reshaping travel payments and offering a mor

232、e reliable,user-friendly experience for all involved.Virtual card payout solutions are not just a technological advancement but a strategic evolution that improves travel payments efficiency,security,and overall management.WorldlineVirtualPaysolutioninpartnershipwithVisa:aMilestoneinTravelPaymentInn

233、ovationPartnering with Visa marks a monumental development in the virtual card space.In2021,theglobalvirtualcardmarketprocessedaboutUSD1.3trillion,withexpectationstosoartoUSD6.8trillionby2026.Visas involvement highlights the growing significance of virtual cards in the travel industry,providing enha

234、nced security,efficiency,and protection against financial disruptions.This partnership not only validates the potential of virtual card solutions but also extends their reach and reliability,benefiting all participants in the travel supply chain.Click here for the company profile35THE PAYPERS|EmbEdd

235、Ed FinancE and banking-as-a-sErvicE rEport 2024Ensuring Last-Mile Collection:Building a Global Payment Network for Seamless Cross-Border SolutionsAyowole Ayodele leads a world-class team at Fincra,a payment technology company offering innovative solutions to businesses across Africa.Passionate about

236、 developing a better global payment system,Ayowole sees Africa as the new frontier for financial opportunities.Fincras products include Pay-In,Pay-Out,and Conversion,facilitating payments and currency conversion seamlessly.AyowoleAyodele CEO FincraThe stakes are high for both sides of a cross-border

237、 payment.For example,a merchant in Africa awaits a sale while a buyer in Europe looks forward to receiving the product.Similarly,a business pays an Asian supplier for quick restocking,with the supplier waiting for payment to finalise the consignment.For remittance,someone in Africa needs funds from

238、a loved one abroad to solve a basic need or start a business,while the sender in the US wants the money to arrive quickly.Freelancers and remote workers depend on timely payment for their work,and employers must fulfil these obligations.These scenarios represent critical moments affecting individual

239、s quality of life and business success,highlighting the challenges in Africas cross-border payment landscape.Cross-border payments continue to be expensive and slow and face insufficient transparency and accessibility.Corporate fees for international payments in africa average around 1%,while remitt

240、ances can incur fees as high as 9.4%.this means that for every USD 100 sent,only USD 90.60 arrives,making Africathemostexpensiveregionworldwide to send money to.trading within african corridors is also challenging due to the 41 different currencies used across 54 countries.Fincra has approached thes

241、e challenges with a simple mission:to ensure the last person or business in a cross-border transaction seamlessly receives their payments.currently,cross-border last-mile collection for remittance is driven predominantly by local payment methods and preferences.For example,over90%ofremittancesinKeny

242、aarereceivedviamobilemoneyplatforms,with m-pEsa being the most popular.In Nigeria,bank transfers,particularly direct bank deposits,are the most popular method for collecting remittances.Cash pickup services remain widely used in areas with limited banking infrastructure,while digital wallets and fin

243、tech solutions are gradually gaining traction.this trend also applies to north africa.Fincra36THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024the need for using local payment methods to deliver last-mile collection in cross-border transactions is driven by the preference for local c

244、urrencies.Individuals are more likely to do businesswithacompanythatsupports payments made in their local currency,especially for remittances or work payments.Its slightly different for business payment collections.Bank transfers(SWIFT and ACH)remain the most popular method in Nigeria,especially for

245、 large transactions.However,payment providers and fintech solutions are becoming popular due to the rise in ecommerce transactions,allowing people to pay across borders via cards and bank transfers.Mobile money dominates cross-border business payment collections in Kenya,with bank transfers and fint

246、ech solutions also popular.The most common methods for international payouts from Africa are bank transfers,digital transactions through PSPs,and remittance services.However,foreign currency liquidity issues hinder these transactions,complicating repatriation for foreign investors.A global payment n

247、etwork must support cross-border payments in various currencies,reaching end users in Africa via digital bank transfers,mobile money,or agent networks.Fincra addresses these challenges by building a global payment network with SWIFT,API integrations,geographic expansion,partnerships with corresponde

248、nt banks,and licensing in Africa,the UK,and canada.Upcoming initiatives include launching domestic rails in the Us,Uk,and china to facilitate trade.to meet the local preference for local currencies in africa,we leverage our diverse partners across the continent to deliver payments in various african

249、 currencies to the last mile.by sitting between partners,we enable a sender to send Usd from america while the receiver seamlessly receives Zar in south africa,kEs in kenya,ngn in nigeria,or UgX in Uganda.We power these payments through various methods,including cards,mobile money,and bank transfers

250、.When technology does not reach the last mile,we utilise partnerships with agent networks for cash pickups.Our network gives us counterparties that ensure liquidity,which helps settle cross-border transactions in record time.Liquidity allows cross-border and remittance apps and platforms to offer a

251、more favourable exchange rate between currencies,enabling them to offer more products like virtual cards,foreign currency accounts,etc.our conversion api allows real-time conversion,helping platforms deliver foreign currency exchange at a lower cost.We are also establishing horizontal payment rails

252、to facilitate direct transfers between African countries,ensuring we enable businesses to seamlessly receive cross-border payments from within the continent in their own currency.the high cost of cross-border payments in Africa is primarily due to the lack of liquidity,competition,and players in the

253、 ecosystem.A provider with a robust global network can attract more players to innovate and build faster payment solutions.More participants and competition would help ensure that payments reach the last mile quickly and at a lower cost,effectively addressing the markets current challenges.Click her

254、e for the company profile37THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024The global proliferation of digital platforms has significantly transformed and augmented the prevalence of independent workers actively seeking flexible,on-demand employment opportunities across various sect

255、ors,such as ride-hailing,food delivery,ecommerce,and logistics.These independent workers are often known as gig workers.the gig economy continues to grow at a fast pace globally,even more so after the pandemic,with more and more people preferring remote work flexibility conditions.The pandemic has s

256、urprisingly boosted the gig economy growth and has provided,in fact,a lifeline to those initially impacted adversely by the pandemic,who had to turn to freelancing in these unprecedented times.In the Singapore landscape,there are now over 300,000 gig workers.As such,the ecosystem must understand the

257、ir financial attitudes,needs,and the faced challenges to provide them with tailored solutions,catering to their niche requirements.Over time,Singapore has firmly established itself as a leading global financial centre,offering a wide range of benefits to financial institutions,industries,and individ

258、uals.It is known for its commitment to setting up an innovative,open,and knowledge-based economy.One of the leading and most successful use cases in the city-nation has been that of fintech and startups,with Singapore taking the stance of being open to innovation.This is demonstrated both by the pre

259、sence and rise of the local startups,and the infrastructure provided to attract foreign startups,institutional firms,and investments.When it comes to the gig economy,singapore has been playing at the forefront as well.While nations globally have been trying to come up with relevant solutions,Singapo

260、re has been leading the charge to ensure that this segments unmet and unserved needs are met.Whether by setting out an advisory committee to understand the niche needs of this segment or by institutionalising a collaborative and ecosystem-centred network involving platforms,regulators,and financial

261、institutions,they have truly paved the way forward in proactively trying to penetrate this underserved segment better.Personalised workplace benefits will define how gig workers seek and optimise their benefits suite across platforms they leverage for seeking work.The Impact of Embedded Finance on t

262、he Gig EconomyFintech NationFintech Nation,founded in 2020 by Varun Mittal,democratises economic opportunities and digitises the economy.Its investment platform backs early-stage fintech in SE Asia,while Tawishi Singh leads its think tank for fintech policy.Varun,an author and angel investor,support

263、s the fintech ecosystem through various funds.TawishiSinghEcosystem and Investment LeadFintech nationVarun Mittal FounderFintech nation38THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024The most appealing aspect for gig workers is their ability to have the discretion and autonomy to

264、select the type of work they would like to be engaged in,based on their criteria.Furthermore,they can work in multiple engagements,without being tied down by a single employer.It is therefore imperative for these platforms to truly understand the needs of the gig workers,to extend their responsibili

265、ties to go above and beyond the boundaries of the traditional employer-employee relationship,and to offer gig workers access to workplace benefits.For this to truly work,and be sustainable,platforms and financial institutions need to ideate and design the right products,collaborate with relevant eco

266、system partners to co-curate where needed,and close the technology gaps,while at the same time ensuring they adhere to the necessary regulatory and compliance requirements.Embedded insurance is pivotal in addressing information asymmetry and alleviating anxiety by seamlessly integrating insurance in

267、to customer journeys.A leading use case of Embedded Finance in this context would be for the gig workers to be able to access insurance through their platform app.The premise is simple,the gig workers are already onboarded to the platform app,and there is a factor of trust between the gig worker and

268、 the platform.By offering them access to workplace benefits,these platform companies provide them with a safety net and increase loyalty and stickiness to their platform.While shift-based insurance may be viewed as an interim solution to the existing coverage gap experienced by gig workers,it is a s

269、tarting point for many.With the work injury compensation legislation coming into effect in late 2024,there is hope that gig workers will soon have access to on-demand coverage and peace of mind as they work.As we learn and engage more with the gig economy,we truly believe there are more needs to be

270、fulfilled beyond just protection.There is a need to drive financial literacy and awareness,to impart knowledge on managing finances,to plan for retirement and attain financial independence not just for themselves,but for their families too.And this cannot happen in silos;relevant bodies such as gove

271、rnment,regulatory,policymaking,and industry bodies should continue to be engaged and involved as needed in this movement,to improve the financial independence within the gig economy.The mission is straightforward:gig workers constitute a vital segment of this ecosystem.The day is approaching when pr

272、oviding them with access to workplace benefits will no longer be considered innovative but be synonymous with a traditional employer-employee relationship.Post Covid,the definition of work has evolved with words entering the lexicon like at will work,making a departure from traditional employment no

273、rms.Trends and Players Shaping the Payments IndustryMaximising Financial and Operational Efficiency40THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024How Breaking Down Silos Fuels Growth-Dont Suffer Silos in SilenceMatthijs Koorn,Senior Account Director at Coupa Software,focuses on p

274、ayments solutions within the Coupa Platform.With 15+years in payments at ING,WorldPay,and Mastercard,Matthijs leads Coupa Pay in DACH,BeNeLux&South regions.Coupas cloud-based BSM platform helps 3,500+customers maximise USD 6 trillion+in spend.Matthijs Koorn Senior Account Director Coupa SoftwareEuro

275、pes economy is starting to recover from years of volatility,but it is hardly out of the woods.While inflation is high,economic growth is not,meanwhile good talent is hard to find.The recent Intrum Payment report showed that optimism is back among executives,with 61%seeing digital transformation as a

276、 key growth opportunity.Additionally,72%of European businesses prioritise strengthening liquidity and cash flow in 2024.Do you know how much cash your business has right now,and is there enough to cover all your financial obligations in the next day,week,month,and financial quarter?Effective managem

277、ent of suppliers and aligning Accounts Payable(AP)with payment terms can unlock working capital and yield-on-liquidity benefits.If your AP team isnt managing their activity while monitoring liquidity,you may have a silo problem.Nearly half of executives(49%),for example,say they are keen to grow int

278、ernationally but their back-office problems such as managing Payments and Cash Flow are holding them back.This is where Embedded Finance plays a role,specifically allowing companies to optimise Accounts Payable processing to improve working capital,unlocking and enabling collaboration(between AP and

279、 Treasury)and growth.the current treasury landscapeCash managers and treasurers usually start by examining bank accounts and assets.However,using disjointed systems or manual processes soon leads to errors,or at least,inefficient management of cash.In fact,three out of every four companies in Coupas

280、 IPO readiness survey revealed that they need to log into multiple systems to identify cash on hand across the entire organisation,with nearly a third admitting they need to log into more than four different systems.This complexity arises from minimal collaboration among Treasury,Accounts Payable,an

281、d Procurement,leading to siloed operations and inefficiencies.the problem with silosSuch decentralisation across divisions creates myriad manual procedures and incompatibilities between different processes,systems,and formats making cash management and liquidity planning a major challenge for treasu

282、rers and cash management teams.CoupaIn an ideal world,Treasury,Accounts Payable and Receivable,and Procurement teams work together seamlessly,so why is the reality often very different?41THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Imagine this:Procurement works to negotiate paym

283、ent terms with a primary Supplier,including establishing early pay discount terms instead of the negotiated 45-day payment termaccounts payable receives the invoice,and although they have a 10-day period to receive the payment discount,they end up making payment on day#20 after receiving the invoice

284、,after the early pay term expires,but 25 days before the invoice is due to be paid.Treasury is flush with cash and is earning an annual yield of 4.5%on the cash sitting in their bank.In the above scenario,Procurement works to set up a structure with a large supplier to avail early pay discounts and

285、generous payment terms.meanwhile,treasury is long cash and earning a low yield compared to the early pay discount which is 30%when annualised.Operational silos,caused by blind spots,lack of visibility,and poor communication,lead to inaccurate cash forecasts,suboptimal working capital,missed credit c

286、ard program benefits,early payments,and late fees.Finance leaders face pressure to do more with less,including unlocking trapped capital and controlling costs.How can these silos be broken?collaborate and unifyThe key step to achieving this reality is to unify Treasury,AP and Procurement on the same

287、 platform,allowing for better communication and data information sharing.this will allow ap and treasury teams to rely less on having to juggle across multiple systems to do their jobs.Heres a secret:a Business Spend Management(BSM)Platform provides organisations with a single source of truth into i

288、ts current financial situation by tracking all supplier payment terms,invoices pending approval,invoice payment methods available per supplier,approved invoices,in-flight payments,and current cash positions.For instance,by combining treasury data with approved po and invoice data,treasurers and cash

289、 managers can obtain greater visibility into their companys spend,which is fundamental to improving how they manage liquidity.in real-time,treasurers can see which payments are approaching and which have already been committed.AP teams can make appropriate payment decisions based on the companys liq

290、uidity position,instead of Treasury having to respond to large payments without forward advice.better togetherArmed with these insights,and working in conjunction with procurement and AP,corporate treasurers and cash managers can forecast their cash position more accurately and keep their cost of ca

291、pital down.By using a BSM platform to provide a single,digitised source of financial truth,companies can create forecasts and liquidity plans faster and more accurately.Plus,by breaking down silos and sharing data,finance teams can become better business partners,providing other departments with vit

292、al data that helps everyone solve tomorrows challenges together,today.42THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024How Embedded Finance Is Transforming B2B Corporate Customer Experience Manish Kohli joined HSBC in October 2021 as Global Head of Global Payments(GPS),focusing on

293、expanding the GPS business and enhancing product capabilities and digital tools to meet client needs.GPS is vital to HSBCs transaction banking leadership,serving 40,000 large corporates and 1.5 million business clients in over 50 markets worldwide.Manish Kohli Global Head of Global Payments HSBCEmbe

294、dded Finance,a transformative approach where financial services are integrated into platforms that businesses and consumers already use regularly,is revolutionising the banking industry by making financial services more accessible and user-friendly.Payments are the common thread linking all commerci

295、al exchanges and integrating them into familiar platforms can significantly improve customer experiences and business efficiency.The global Embedded Finance market size and share was valued at USD82.48billionin2023 and is anticipated to generate an estimated revenue of USD 1,029 billion by 2032,with

296、 a CAGR(compound annual growth rate)of 32.4%from 2024 to 2032.At HSBC,we believe that this integration is set to be a critical competitive differentiator in the future.Our Everything-as-a-Service strategy for payments is a prime example of how Embedded Finance is being brought to life.We are current

297、ly working with partners to integrate our payment capabilities into the platforms that our clients use to run their businesses,which does not only help differentiate our offering but delivers real benefits for customers.Another area where we have seen great success is with embedded virtual cards.We

298、are the first global bank to integrate virtual cards into Oracle Fusion Cloud ERP and will soon be the first global bank to integrate with the SAP Taulia platform.This integration enables our customers to make payments using virtual cards within native platforms through a streamlined and automated p

299、rocess,improving working capital and operational efficiency.HSBC is also embedding its payment solutions into client onboarding processes.Recently,we ran a pilot in India(and subsequently launched in the UK and US)of HSBC Smart Transact,a new solution designed to provide clients with non-complex req

300、uirements with everything they need to move money domestically and internationally.This solution reduces onboarding time,internal handoffs,and the amount of data required,ultimately improving the client experience.HSBCBanks should embrace Embedded Finance solutions for corporate clients.HSBC is dedi

301、cated to providing exceptional experiences in this space.43THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024the current landscapeThe economic and geopolitical landscape has evolved significantly post-pandemic,driving a notable shift in the B2B payment space.In particular,the shift in

302、 working practices has prompted CFOs to reassess their digitisation agendas,particularly regarding payment processing and execution,which now need to be seamless and location-independent.For banks and financial service providers,this shift in expectations means integrating banking services into the

303、platforms where customers transact and do business.Embedded Finance solutions,such as those integrated into systems like SAP,exemplify this trend by breaking down traditional silos and providing an integrated interface for financial transactions.Additionally,the increased use of AI in business decis

304、ion-making,particularly in procurement and payment solutions,and the growing emphasis on sustainability and corporate social governance practices,are helping to shape the future of Embedded Finance.these trends are driven by consumer demand and regulatory pressures,underscoring the need for ongoing

305、innovation from banks.the path aheadData privacy and security remain paramount as financial transactions take place on apps.Protecting sensitive information will remain a key priority,driving significant investment in regulatory compliance,particularly with regulations like GDPR.AI can play an impor

306、tant role in detection and access point security,ensuring that as we continue to innovate,we protect against fraud.Despite these challenges,fraud should not limit innovation instead,it should reinforce our commitment to secure,efficient,and transparent payment solutions.Integrating cards into Embedd

307、ed Finance solutions,for example,can offer numerous benefits,including favourable chargeback rates and fraud protection.For treasurers,this integration can generate new revenue sources,accelerate payments to suppliers,and improve working capital by extending the Days Payable Outstanding(DPO).Organis

308、ations are increasingly interested in leveraging Embedded Finance for procurement and other areas.Banks can offer card and trade solutions directly within these platforms,allowing corporates to choose the most suitable solutions for their needs.this virtually friction-free procurement process is hig

309、hly attractive to businesses.For banks,the focus must be on adopting these behaviours and presenting solutions that leverage Embedded Finance in the corporate space.By simplifying processes for procurement managers or accounts payable officers,banks can strengthen corporate relationships and drive b

310、usiness success.HSBCs approach to developing Embedded Finance solutions involves carefully examining customer platforms and placing financial services where they are most needed.This reduces manual processes,enhances real-time financial insights,and provides cost-saving benefits without requiring si

311、gnificant new investments in technology.We understand that our customers want to grow rapidly and internationally.They need to manage risks in a constantly evolving environment.As a leading international bank,we are committed to delivering these experiences to our corporate clients.By embracing Embe

312、dded Finance,we aim to offer innovative,secure,and efficient financial solutions that align with our clients needs and help them thrive in an increasingly digital and interconnected world.By embracing Embedded Finance,we aim to deliver innovative,secure,and efficient financial solutions that align w

313、ith our clients needs in todays digital,interconnected world.Trends and Players Shaping the Payments IndustryGlobal Mapping and Infographic of Players in Embedded Finance&BaaS 2024-202545THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Embedded Finance is revolutionising how financia

314、l services are offered by incorporating them directly into the infrastructure of non-financial companies.This means that services such as lending,accounts,payment,and insurance are now seamlessly integrated into everyday platforms and applications.according to industry expert simon torrance,the glob

315、al value of Embedded Finance is expected to reach an astounding Usd 7.2 trillion by 2030,underscoring its immense potential and the growing interest it is generating.purpose of the infographicThis mapping infographic is designed to help decision-makers,whether youre a brand,an investor,a bank,a SaaS

316、 company,a fintech,a marketplace,or a business looking to integrate financial services into your platform,strategies,and operations.It will serve as an indispensable resource by providing a structured and comprehensive view of the current ecosystem.by organising the landscape into various sections a

317、nd subsections,we aim to make it easier for you to understand and identify key companies for benchmarking or implementation purposes.key players and their innovationsIn this mapping infographic,we explore the most influential players driving innovation in the global Embedded Finance landscape.We hig

318、hlight each key players use cases and products,offering valuable insights into the potential applications of Embedded Finance.Youll learn about the innovators behind this growing industry,the solutions they provide,and how they are shaping the future of finance.the technology powering this transform

319、ative ecosystem is diverse and dynamic.many players contribute to its development,and weve organised them into key categories to showcase their exceptional products and contributions.This categorisation helps you understand the varied approaches and solutions different players bring to the ecosystem

320、.a dynamic and evolving landscapeWhile the paypers has thoughtfully crafted this mapping infographic based on extensive research and discussions with industry experts,it may not capture every player in the Embedded Finance field.The industry is in a constant state of evolution,with companies rapidly

321、 developing new capabilities and use cases that redefine the landscape.As a result,our mapping infographic is dynamic and open to updates and expansion to ensure it remains current and comprehensive.contribute to the living mapThis landscape continuously evolves as new companies enter the market and

322、 existing ones introduce new solutions.If you believe a company is missing or a section/sub-section should be added,we welcome your feedback.Please reach out to with your suggestions to help keep this resource as accurate and inclusive as possible.Introduction46THE PAYPERS|EmbEddEd FinancE and banki

323、ng-as-a-sErvicE rEport 2024Products&SolutionsEmbedded Finance/Embedded BankingBanking-as-a-ServiceGlobal Mapping and Infographic of Players in Embedded Finance&BaaS 2024-2025researched by the paypers,2024RR47THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Products&SolutionsaccountsL

324、ending/Financingresearched by the paypers,2024Global Mapping and Infographic of Players in Embedded Finance&BaaS 2024-202548THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Global Mapping and Infographic of Players in Embedded Finance&BaaS 2024-2025Products&SolutionsDigital Bankingpa

325、ymentsresearched by the paypers,2024RR49THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Products&Solutionspayments processingcard issuingcredit disbursementscryptoGlobal Mapping and Infographic of Players in Embedded Finance&BaaS 2024-2025researched by the paypers,202450THE PAYPERS|

326、EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Global Mapping and Infographic of Players in Embedded Finance&BaaS 2024-2025Products&Solutionsb2b paymentsEmployee Finance/Benefits/RewardsBenefits&Loyalty ManagementExpense Tracking&ManagementinsuranceinsurtechEtF investingresearched by the paype

327、rs,2024R51THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Global Mapping and Infographic of Players in Embedded Finance&BaaS 2024-2025Products&SolutionsamL&kYbCore BankingamL&kYcmulti-currencyap/ar paymentsresearched by the paypers,2024R*via proxy52THE PAYPERS|EmbEddEd FinancE and b

328、anking-as-a-sErvicE rEport 2024Global Mapping and Infographic of Players in Embedded Finance&BaaS 2024-2025Products&Solutionsonboardingpayout/X-borderaccountingpayrollSecurity,Compliance&Risk Managementresearched by the paypers,2024R53THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024

329、Global Mapping and Infographic of Players in Embedded Finance&BaaS 2024-2025Products&Solutionsremittancessalary advancespend managementtreasurycard-as-a-serviceWealthBanking-as-a-Technologyresearched by the paypers,2024R54THE PAYPERS|EmbEddEd FinancE and banking-as-a-sErvicE rEport 2024Global Mappin

330、g and Infographic of Players in Embedded Finance&BaaS 2024-2025LicenceBanking LicenceElectronic Money Institution(EMI)payment institutionFinancial institutionmastercard principal membershipvisa principal membershipresearched by the paypers,2024*via proxy*55THE PAYPERS|EmbEddEd FinancE and banking-as

331、-a-sErvicE rEport 2024Global Mapping and Infographic of Players in Embedded Finance&BaaS 2024-2025LicenceAISP(Account Information Service Provider)PISP(Payment Initiation Service Provider)credit institutioninsurance intermediaryPayment Solution Service Providers(PSSP)Money Service Business(MSB)resea

332、rched by the paypers,2024*via proxy*For the latest edition,please check the Reports sectionDont Miss the Opportunity of Being Part of Large-Scale Payments Industry OverviewsThe Paypers releases annual reports covering global trends in payments and fintech,including instant payments,A2A payments,Embe

333、dded Finance,Open Finance,payment methods,financial crime,regtech,Banking-as-a-Service,regulation,fraud prevention,and digital identity.The reports feature insights from industry experts worldwide,including consultants,policymakers,service providers,merchants,banks,PSPs,technology companies,and fintechs.Additionally,the guides offer listings and advertorial options for effective global company exp