These days, a lot of people use embedded payment technology – often without even realizing it. And that’s part of what makes it so attractive.
For example, if someone takes an Uber, they pay for their ride within the app itself. In other words, the payment process is embedded so seamlessly into the service they’re paying for that they might not even stop and consider how easy it is.
Unsurprisingly, embedded payments are gaining ground everywhere – not just for things like ordering food on Grubhub, but also in the medical and insurance spaces, too.
In fact, embedded payments are completely disrupting how payments work across the board, and they’re emerging as a critical tool for streamlining the sales process in any business.
Let’s talk more about embedded payment technology and why using it in the medical and insurance spaces is a smart move.
What is embedded payment technology?
As we touched on briefly above, embedded payments seamlessly merge payment processing and financing for e-commerce transactions – without needing a third-party payment provider.
What does that mean?
For one thing, the payment process consumers go through is much more discrete than before, which puts the focus on the product or service rather than on the cost.
For example, consumers who use platforms like Amazon have the option to save their payment information and preferred address for future transactions.
So, the next time they want to place an order, there’s no need for them to fill out their card info and shipping details – it’s already conveniently on file. In a nutshell, this is one clear benefit of embedded payment technology at work: It makes transactions hassle-free.
Why is this important?
Because it’s clear that no one wants to have to keep filling out long forms every time they want to make a purchase. Businesses and consumers alike want the whole process to be as easy as clicking ‘buy now’ and getting a confirmation email seconds later in their inbox.
In fact, in a recent survey, 17% of responders said that a long or complex checkout process makes them abandon their cart altogether.
That’s why embedded payment technology is so valuable: It takes the hassle out of transactions so consumers can focus on what they’re buying instead of endless forms.
How does embedded payment technology work?
Basically, embedded payment technology uses application programming interfaces (APIs) to integrate payment processing into websites or apps.
So, this means that even sellers who aren’t financial institutions can now seamlessly manage payment transactions.
In fact, there’s no need to even log into a bank account to complete a transaction.
This technology is known as embedded banking, and both embedded banking and embedded payments are part of the larger category called embedded finance.
Ultimately, embedded finance has to do with all the payment services that non-financial enterprises can provide.
Why embedded payment systems are gaining ground
According to projections, embedded finance’s market value could exceed USD $7 trillion by 2030. And, more specifically, embedded finance in the healthcare and insurance spaces could be worth close to USD $2 trillion by then.
So, for these sectors, these projections represent a clear opportunity for early adaptation and growth.
The question remains, though: Isn’t it an unnecessary hassle for non-financial enterprises to handle payments themselves? Doesn’t it make more sense to let a third-party take care of the financial side of things?
Well, not really.
These days, there’s a strong case for why companies should adopt embedded finance so they can stay up-to-date on technology and serve consumers better.
One of the challenges of dealing with third parties for payments is that, if a problem emerges during a transaction, it’s your company that will get blamed rather than the payment facilitator.
And, if this happens, getting to the bottom of the issue is a hassle. By the time the problem is solved, your company will likely have lost a customer.
More and more, consumers expect speed and convenience in their shopping journeys, so being able to seamlessly facilitate payments for them is a huge advantage.
Embedded finance makes paying for care plans and big B2B expenses easier
Buy Now, Pay Later technology isn’t just convenient for buying an expensive pair of sneakers. It’s also incredibly valuable in the insurance and medical sectors, too.
Let’s take the medical space as an example.
It’s clear that many patients are unable to pay for medical expenses all at once, which can severely limit their access to care – and lead to bigger healthcare bills as minor issues become bigger. It’s time this changed, and patients agree.
In fact, according to a survey of more than 3,500 U.S. adults, more than 50% of those who were aware that their medical providers offered flexible payment options took advantage of them.
In the insurance space, too, B2B embedded finance is also gaining ground to facilitate premium financing for big expenses like P&C insurance, and it’s not hard to see why. By harnessing tech, companies can offer the convenience and speed people want and expect.
Clearly, there’s a need for embedded finance in general, and adopting this technology is the key to staying relevant in the rapidly-changing payments landscape.
At Genius Payment Systems, we know that pairing payment technology with innovative systems can fundamentally change how the insurance and healthcare industries work. With our decades of experience in the field, we offer real solutions to support our partners’ long-term goals.
Ready to upgrade your business’s payment processes? Contact us today to get started.