Embedded finance has altered the way customers overcome finance-related problems while making purchases spotted Bahaa Abdul Hussein. Hailed as the future of fintech industry, it comes bearing easy solutions to anything that stops us from shopping. Say you’re finally about to buy something that’s been on your wishlist forever and is on the verge of being sold out forever.
If you don’t have enough money in your account, you need fear no longer. Platforms like Amazon, Target and PayPal are offering instant loan facilities, BNPL (Buy Now, Pay Later) policies, insurance options and cashless checkouts. Let’s look into the latest examples of embedded finance that are etching a new chapter in the annals of 21st century financial history.
Amazon
Amazon has been at the forefront of the embedded finance revolution with their Buy Now Pay Later scheme. Research shows that new gen customers opt for this over other methods of payment. Amazon always values the consumer experiences and is constantly innovating to address their setbacks.
Klarna
Going to the bank to apply for a loan or credit cards has become a thing of the past. Many e-commerce sites now apply lending and credit options. You can get a loan instantly on the go when you’re in the middle of checking out a product. By providing essential details, platforms like Klarna and FuturePay allow customers to break down their purchase into smaller amounts. If you buy a product for $200, you can pay it in installments of $50 for 4 months.
Lyft
If you’ve been sharing rides on Lyft, you would’ve noticed they have app-specific debit cards for their drivers. Uber’s money division also provides a host of embedded finance options for its riders and drivers. The fact that they all support hassle-free digital payments charged automatically at the destination is also an example of embedded finance.
Starbucks
The global coffee chain giant has supported mobile payments and reward systems for over a decade now. Customers can collect stars for every purchase they make and exchange them for discounts later. There are also value cards and gifts cards exclusively for Starbucks customers. Crypto wallets and wearable payments are also the norm now.
Google Pay
Streamlining payments is easier than ever with digital payment apps like Google Pay, PayPal, Venmo, Zelle and so on. By linking our bank accounts and credit cards with these apps, one can make quick QR code payments anywhere without remembering their card details or carrying cash.
Acorns
To the layman, making investments and dealing with mutual funds can seem complicated. Luckily, Acorns takes care of this for its users in a simple way. It invests people’s money by accumulating leftover change and grouping purchases together to apply it on a future payment. It is quick and easy to use, especially because users don’t even have to bother with transferring balance to accounts. The app does it by itself and portfolios are altered accordingly as market prices fluctuate.
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