An embedded payment system can create a lucrative new revenue source for your business. When users sign up to accept payments through your website, you get paid for each transaction made through their checkout pages.
The entire transaction happens within your online ecosystem. Adopting embedded payments can improve your cash flow and foster strong connections with your user base.
The total value of embedded payments is projected to exceed $7 trillion by 2026. Entering this emerging industry can position your business for exponential profit growth in the coming years.
More than half of non-financial companies plan to introduce embedded payments over the next five years, so we've developed this guide to help you get ahead of the curve by acting now.
What Are Embedded Payments?
An embedded payment platform allows you to access the value of your customer base. You can partner with Pay.com to offer a checkout platform for your users. When business owners sign up to accept their own payments through your system, you'll receive a portion of fees from each sale they make. Over time, these transactions can add up to substantial profit.
This model is popular among software-as-a-service (SaaS) providers, and it's quickly expanding to other industries. Examples of embedded payments include:
- Health care systems. Separate practices within the larger business can accept payments through individual branded payment platforms.
- Website building platforms. For example, users can accept payments through the same platform they use to create their online content.
- Third-party payment companies. These businesses give their users the ability to accept payments, offering branded solutions that actually come from a larger payment services processor.
- Branded credit cards. Restaurants and retail shops offer their own credit cards, typically backed by major businesses like MasterCard and Visa.
Embedded payment platforms allow your company to provide financial services even if you're in an entirely different market.
5 Reasons Your Business Needs Embedded Payments
1. Enter a Rapidly Growing Market
Business owners expect a seamless experience when they receive payments online. At the same time, consumers increasingly demand a friction-free checkout process, creating a challenge for new ecommerce companies.
Adding embedded payments allows you to serve the emerging audience of small and medium businesses who need to give their customers an exceptional checkout experience. The embedded payments sector is projected to grow by about 69% over the next few years, reaching $138 billion in value in the US alone by 2026.
2. Diversify Your Revenue
Adding services to your core business model can help your company survive tough economic circumstances. It can also give you an edge over competitors that don't offer integrated payments.
An embedded payment platform creates an income stream that scales as you add new users. That stream can potentially grow to make up more than half of a company's revenue.
You may also see decreased churn in your user base as a segment of the audience adopts your payment system. They've invested time and money, so they're less likely to switch to another provider.
3. Boost Platform Loyalty
Offering new services encourages your users to expand their business with your brand. If users can accept payments right through your platform, they're less likely to look elsewhere when they need another product or service you offer.
Users who take advantage of your embedded payments service have a reason to stick with the company for the long term. If you exceed their expectations, they may even refer others in their network who need payment services.
4. Drive Stronger Sales
As you expand your business and roll out new products and services, you'll increase your total sales value and volume with your built-in user base.
Nearly 88% of non-financial companies say they experienced increased user engagement when they began offering payment services, while 85% of these business owners reported higher conversions. Both factors contribute to higher sales numbers, a cornerstone of financial stability.
5. Enhance the User Experience
As you build strong relationships with your users, you'll understand their preferences and behavior when using services like yours. As a result, you can customize the available payment options and other components of your platform to exceed user expectations.
For example, you can use your embedded payment system as part of a customer loyalty program. You might offer reward points for each processed transaction to incentivize the use of your service. They can trade in the points for special promotions, discounts or other perks depending on your business model.
Embedded Payments with Pay.com
Choosing the right partner can help you succeed with embedded payments. Pay.com provides an embedded payment platform that works for companies across industries. Your users will have the flexibility they need while we handle everything on the back end. It couldn't be easier for your business to add this valuable new stream of revenue.
When you partner with Pay.com, your users can accept many different payment methods, including credit cards, debit cards and digital wallets. Everyone on your system benefits from our Level 1 PCI DSS compliance, which features security tech like tokenization. We also offer 3D Secure 2.0 (3DS2) multi-factor authentication to prevent payment fraud.
Our full-service infrastructure lets you monetize your user base, creating new profit streams to support sustainable growth. You'll earn commission for every transaction that takes place through each company's checkout system on your payment platform. Your users will have access to real-time transaction data thanks to the extensive reports available through our Pay Dashboard.
When you sign up, we'll assign you a dedicated account manager who will guide you through the process of developing your own custom embedded payments solution. Pay.com support staff also provides around-the-clock technical assistance as needed..
The Bottom Line
Embedded payments provide a revenue stream that can grow exponentially with your user base. Even if you're not in the financial industry, you can offer your audience integrated payments that build revenue and strengthen customer relationships.
It's important to act now to take advantage of the exponential growth in this area, especially as a wide segment of enterprises plan to add this profit stream soon.
Pay.com makes it easy to add an embedded payment platform to your website or app. You'll receive a portion of the proceeds from every single sale your users make. Your users will benefit from our streamlined checkout process. They'll be able to accept many payment methods, including the most popular options for their customers.