Only 1 in 10 Americans has heard of embedded transactions, yet more than 40% of consumers use some of the most popular providers—Apple Pay and Google Pay to name just two.
That these experiences are so ubiquitous yet invisible to consumers speaks to how well they work. These are transactions that occur automatically using details the consumer has entered before, without interrupting the experience and often without the customer even knowing.
One of the most widely cited examples is Uber—you take a ride and the fare is calculated and paid for when you arrive at your destination, entirely without your intervention. But the term can apply to any transaction that makes use of customer information already at the brand’s disposal.
The Amazon Pay e-wallet, for example, automatically populates payment and delivery information from a customer’s Amazon account to a partner retailer. Starbucks also uses embedded transactions to enable customers to order and pay from their smart devices—and collect and redeem reward points in the process.
2020 embedded payments
2025 embedded payments (projected)
The fact is that embedded payments are expected to generate $230 billion by 2025—up from $22.5 billion in 2020. This creates a challenge for fintech brands trying to hold on to their market share—but also reveals an opportunity for every challenger brand looking to deliver more effective customer experiences (CX).
Let’s take a look at why this kind of transaction and the accompanying microservices are growing so quickly, what it means for established fintech brands—and what that can teach challenger brands about CX.
Being invisible but always available
Customers might not see embedded transactions or microservices in action, but they feel the benefits—and challenger brands will soon feel the effects.
Having their saved payment details readily available and entered automatically means customers don’t have to reach for their card to complete a purchase. Embedded transactions give customers a smoother checkout experience and reduce cart abandonment.
These customer benefits have long been the ambition of brands in the financial sector—and now every challenger brand can deliver them. Uber, Amazon, and Starbucks aren’t financial companies. But embedded payments allow them to accept payments natively, instead of through a third party, and deliver a seamless payment CX.
This means that fintechs will have to turn to value-added services to stay relevant—using data to provide automated advice and a hyper-personalized view of their financial goals.
But it doesn’t stop at the financial sector. What the rise of embedded transactions and microservices shows us is that customers want highly efficient day-to-day CX across all sectors to be invisible—but… also for a human to always be available to deliver a deeply personal experience.
Embedded transactions need embedded CX teams
The perfect complement for embedded transactions is an embedded CX team. While the former makes day-to-day interactions seamless and invisible, the latter is able to step in and provide unique hyper-personalized and on-brand experiences when the customer requires.
An embedded CX team is one that understands that it has been trusted with a brand experience—an experience that, like an embedded transaction, uses every customer interaction to guide the next.
Embedded transactions teach us that, with consistent training, feedback, and refinement, CX teams can see what your customers really want and where experiences are succeeding or where they could be improved.
This understanding gives CX teams the power to predict needs and minimize unnecessary interactions. So, you can be invisible when they want you to be and visible when they need you to be.
Want to see how embedded CX teams are helping challenger brands build better customer relationships? Go directly to our “Commit to CX-First Outsourcing” page.
“How Embedded Finance Will Disrupt Traditional Financial Services Brands” – https://morningconsult.com/2022/01/25/how-embedded-finance-will-disrupt-traditional-financial-services-brands/
“How embedded finance will change transaction banking within the digital experience and for operational efficiencies” – https://blogs.oracle.com/financialservices/post/how-embedded-finance-will-change-transaction-banking-within-the-digital-experience-and-for-operational-efficiencies