Across the embedded finance spectrum, embedded payment services are the most advanced and mature product category. In the consumer space, payments have become an almost invisible feature that is seamlessly integrated in checkout or payment customer journeys. Together with Michael Clark, VP Global Head of Digital Transformation at Mastercard, Alloy’s Head of Global Edwina Johnson Elizabeth Lumley, Deputy Editor at The Banker, we recently sat down to evaluate the current state of innovation in payments and how developments such as embedded payments, new payment methods and crypto might impact the landscape.
On the topic of embedded finance, Maso mentioned:
“More and more when we talk about payment service providers or retailers, during the whole purchase-to-pay journey, the trend is towards trying to make payments as invisible as possible, because in the end nobody likes to pay but you like to get the product that you want.”
Adding to this point, Michael from Mastercard explained how embedded payments offered an opportunity to enter market adjacencies:
“Banks are now exposing their capability to enable startups, even retailers, to offer financial capabilities to their customers. So a whole industry is starting to form around embedded finance, either to jumpstart the companies that actually want to offer finance or as a means for banks to actually create a new revenue line, which is almost banking as a service.”
You can listen to full discussion titled “The future of payments: exploring the near and long term opportunities for innovators” below: