Embedded Finance Ecosystem: Mapping the Path to Transformation of Goods and Channels Industries

Delivery

This report comes in PPT.

Key Findings

Seamless finance experience critical for the overall customer journey

Finance enables transactions for all goods and services, so improving satisfaction with the overall customer journey depends significantly on the finance experience.

As payment is visible to end customers, the success rate, speed, cost and security of payment is particularly critical among all embedded finance products and services.

Diversify payment options with a single integration

Increasing diversity of payment methods and complexity of local payment markets make payment a challenging task for non-financial firms, especially those expanding overseas.

With value-added services in collection and fraud management, payment aggregators which support a single integration for most cards, digital wallets and fast payment are rising.

Electronics manufacturers active in embedded finance, while appliances firms venture into subscriptions

Leading electronics manufacturers, such as Apple, Samsung and Huawei, have been active in embedded finance to drive sales of their devices, especially smartphones.

Finance in smart appliances has not gained traction yet. Appliances businesses including Electrolux, LG and Bosch have been exploring Appliances as a Service (ie subscriptions), embedding finance, especially recurring payment.

Social media, especially streaming and gaming, require a frictionless finance experience

While Tencent, Kakao and Line successfully embedded finance into messaging, increasingly popular streaming generates new opportunities for e-commerce and embedded finance.

Embedded finance, especially payment with no friction, and fast and secure payment, are in demand, especially for cross-border transactions involving social media content creators and game developers.