How Can Platform Businesses Gain From Embedded Payments, and What Are They?

Payments are being more integrated into platforms. Explore their nature and how they might help your company.

Payment integration is quickly becoming a competitive advantage for marketplaces and SaaS platforms. Small and medium-sized companies (SMBs) that use our platform often appreciate the added convenience of built-in payment processing.

Integrating payment options into your site can help you gain and keep users. It paves the way for additional income, enabling your platform to adapt to new conditions.

Let’s start at the beginning before we get into the specific advantages of integrated payments.

How do embedded payments work for platforms?

Embedded payments let customers choose their favorite way to pay and pay straight through a link on a shopping website or app, providing a seamless, one-click payment experience.

Payments become integral to the platform’s user experience with embedded payments. Instead of sending customers to external payment processors, platforms can include this functionality directly within their service.

For instance, platform users will need a way to accept customers’ payments when selling products online. If they use your platform, they won’t have to worry about finding and handling separate payment processors.

The Advantages of Embedded Payments

Many platforms still depend on referral or partnership models when it comes to user compensation. To take payments, platforms often direct customers to third-party system integrators and payment service providers (PSPs).

This method is time-consuming and expensive for both your consumers and your platform.

SaaS platforms and marketplaces can take charge of their payment offerings by embedding payments and processing payments in-house. Platform users may conduct business, make sales, and collect payments without leaving the platform.

The advantages for the user are obvious. Instead of wasting time choosing a payment processor, integrating payment processing into their company platform, and troubleshooting with several help desks, they can set up payment processing with a single click.

Make More Money By Integrating Embedded Payments

There are several benefits for platform users with embedded payments. Eliminating the requirement to choose and administer a payments provider improves the user experience and decreases the number of suppliers required by at least one.

Users will be more satisfied and loyal if you allow them to make payments directly. Embedded payments for your platform have several advantages, including increased customer loyalty.

Adding payment processing to your product line can help you generate more income. For some pioneers, embedded payments already accounted for as much as 80% of overall revenue.

The flexibility to charge for any of your products is a significant perk of including payment processing. Instead of getting a flat kickback charge from a payments provider, you can choose the price for each transaction and any other options you provide.

Comparison of Embedded Payments

Several sites use the referral payment concept extensively. Due to the variety of payment providers, system-wide integration is essential. Consequently, the platform loses control of the user experience, and users have fragmented, inconsistent interactions.

There are a variety of paths that platforms can take to add native payment processing to their product lineup. They may go with a premade embedded payments solution or design their own system from the ground up. Your comfort level with risk and accountability should guide the configuration of your platform.

  1. Out-of-the-box embedded payments: Platforms that value speed to market will appreciate the convenience of out-of-the-box integrated payments. Payments that are already built-in need little time and energy from developers to implement.
  1. Tailored embedded payments: This is the best choice for platforms providing highly personalized payment services. With integrated payments, platforms may customize the integration to their own needs.

Embedded Payments in the Future

Thanks to embedded payments, platforms can deliver a full range of embedded financial services. Platforms can now offer their customers the banking services they want, such as SMBs, which have been lacking because of emerging technology and rising user demand.

Platforms may provide integrated financial solutions suited to users’ daily transaction volumes and sales patterns and provide them with an additional incentive to remain on the platform by gaining access to this data. It includes having quick access to opening company bank accounts, getting the funding they need to expand, and getting customized business cards via their platform.

Less than 5% of SMBs now get their financial services via platforms, showing that the SMB-embedded finance business is still in its early stages. But everything happens quickly. Platforms that react quickly and have the proper alliances and technology will succeed, while those without run the danger of falling behind.

Use the UniPay Payment Gateway to Begin Accepting Embedded Payments

UniPay Gateway Solutions provides a turnkey payment integration solution or a flexible platform for building your marketplace or platform from the ground up. With our constantly improving technology, your customers can join, sell, and be paid all in one convenient location.

Our product allows you to:

  • Get fast user onboarding and authentication: Get merchants to join your network. Before making any payments, we will check them and let you know the findings.
  • Handle money transfers: Take user-submitted payments. Splitting the money across multiple recipients, deducting fees as necessary, and holding cash until payout are all options.
  • Deal with fund disbursement and wiring: Determine whether user payments will be made on demand or automatically. Your users’ specified local payment methods are used for payouts.

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