Thinking of scaling up your business? If so, congratulations: you likely already have a solid customer base and some great products or services. However, taking your business to the next level involves using the help you can get. One powerful tool that can make a difference is embedded finance. Read on to learn how this works and why you need it!

What Are Embedded Payments?

Embedded payments involve payment processing that’s integrated directly into your existing platform, whether that’s your app, website, or business software. Instead of using a third-party payment gateway, your customers will remain within your environment throughout the whole transaction. This is a lot like paying for a ride-sharing service directly through their app.

Benefits of Embedded Payments

Embedded processing may seem like a minor feature, but enabling it can be huge for the scalability of your business. Here are three reasons why this is the case.

1. Smoother Customer Experience

To modern customers, any friction in the purchasing process can be a signal to abandon the transaction. One common example of friction involves redirecting customers to an external payment page, which can feel clunky and raise security concerns. By keeping the transaction within a familiar interface, you create a more intuitive shopping experience.

2. Enhanced Security

Handling payments directly may sound overwhelming from a security perspective. The truth is, however, that embedded payment providers offer security features that protect you against any sort of fraud. As long as you partner up with a trusted provider, you can simplify your PCI compliance requirements while keeping your customers’ data secure.

3. More Brand Control

Every time you redirect a customer to a third-party gateway, you lose a little control over your branding. Most payment pages will look very different from your platform, creating a disjointed experience. With embedded payments, you keep control over the entire transaction flow. Beyond aesthetics, this gives you valuable insights into your customers’ behaviors.

Choosing an Embedded Payments Partner

Since becoming a payments company isn’t a viable path for most businesses, your best bet will often be to choose an embedded payments partner. The first thing to look out for is a modular approach. You should be able to choose which payment products to integrate without having to settle for a monolithic solution, and those products should integrate with minimal friction.

Next, you need a partner that can grow with you. Larger platforms like PayPal and Stripe aren’t well-positioned to support fast-growing businesses because they’re hard to unplug from when you’re ready to take on more responsibility. Your partner should allow you to customize your payment products over time and provide pricing options for every business stage.

Finally, your partner should offer industry-leading customer support. This includes both 24-hour access to live support and a direct account specialist who is familiar with your business.