96 per cent of European brand will offer embedded payments within the next five years, according to new research from OpenPayd.

A survey of 150 senior executives from B2C and B2B marketplaces in Europe ranging from eCommerce and manufacturing to technology services found that nearly all respondents were planning to implement embedded finance or were seriously thinking about doing so.

Embedded banking services are also growing, with the report finding that 94 per cent were considering offering these to customers in the next five years, followed by short-term lending (69 per cent) and embedded insurance (69 per cent).

A previous report from OpenPayd also found that 73 per cent of European brands plan on launching embedded financial services within the next two years and the embedded payments will be the mechanism of choice.

Embedded payments services are expected to generate a total of 277.46 billion Euro of revenue in Europe over the next five years.

The report found that brands are already investing heavily in embedded payments with almost a quarter (22 per cent) having embedded payments in development and three quarters expecting to take products to market within the next two years.

This research on embedded payments revealed that curating customers’ journeys is key.

According to the brands surveyed, the three most appealing aspects of embedded finance are: retaining the front-end customer experience (85 per cent), increasing the number of customers touchpoints with their brand (84 per cent) and offering mobile wallet or current account options to customers (79 per cent).

Commencing on the findings, 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.”

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