OpenPayd reports 96% of European brands will offer embedded payments within five years

By Joy Dumasia

According to new data from OpenPayd, global payments and banking-as-a-service platform, most European brands are looking to join the embedded finance boom via embedded payments offering. Nearly all companies surveyed (96%) said they were planning to offer embedded payments to customers in the next five years or are seriously thinking about doing so, edging out embedded banking (94%), short-term lending (69%) and embedded insurance (69%).

As revealed in a report from OpenPayd, 73% of European brands plan on launching embedded financial services within the next two years, and the embedded payments will be the mechanism of choice. In total, embedded payments services are expected to generate 277.46 billion Euro of revenue in Europe over the next five years. Brands are already investing heavily in embedded payments, with almost a quarter (22%) having embedded payments in development and three quarters expecting to take products to market within the next two years.

This research on embedded payments also reveals some detail about implementation, with businesses pinpointing one critical success factor in rolling out embedded payments offering curating customers’ journeys. According to the brands surveyed, the three most appealing aspects of embedded finance are: retaining the front-end customer experience (85%), increasing the number of customers touchpoints with their brand (84%) and offering mobile wallet or current account options to customers (79%).

Iana Dimitrova, Chief Executive at OpenPayd, said: “Embedded payments deliver the convenience consumers expect by seamlessly fitting into the checkout process. Merchants are using embedded payments to transform what was a strictly functional payment process into a personalised, intuitive experience. What will drive this change will be the collaboration between those brands that want to provide embedded payment solutions and the technology companies that can help build them. The market is quickly being established, and we’re already seeing the appetite from businesses and consumers; the time is now for brands to leverage embedded payments.”

IBS Intelligence reported that OpenPayd, a global payments and banking-as-a-service (BaaS) platform, revealed insights from the largest ever independent study of brand attitudes towards embedded finance.