What are embedded payments?

The way businesses handle transactions is evolving. Customers expect seamless, frictionless payments, and companies that fail to deliver risk falling behind. Enter embedded payments—a game-changer in the digital economy. But what exactly are embedded payments, and why are they critical for businesses in banking, fintech, insurance, embedded finance, and travel?

In this article, we'll explore the concept of embedded payments, how they work, and the key benefits they offer to various industries.

Embedded payments integrate payment processing directly into a platform, application, or service, allowing users to complete transactions without leaving the ecosystem. 

Unlike traditional payment methods that redirect customers to third-party gateways, embedded payments keep transactions within the customer’s journey, creating a seamless experience.

For example, think about booking a ride through a ride-hailing app. You don’t need to manually enter card details every time—you simply confirm the ride, and the payment happens automatically in the background. That’s an example of embedded payments in action.

Why you should consider embedded payments

Today’s consumers expect speed and convenience. Whether they’re shopping online, booking travel, or managing financial services, they want transactions to be intuitive and effortless. Embedded payments are essential because they:

• Enhance user experience: Customers complete transactions with fewer clicks, reducing friction and improving satisfaction. For example, food delivery apps allow users to store payment details, enabling instant checkout with minimal effort.
  
  
• Increase conversion rates: A seamless payment process minimises drop-offs and abandoned transactions. Retail platforms offer one-click purchase to reduce friction, encouraging customers to complete their purchases effortlessly.
  
  
• Improve efficiency: Businesses can streamline operations by integrating payments into existing workflows. For instance, SaaS platforms enable merchants to manage transactions, invoicing, and payouts without needing external payment processors.
  
  
• Boost customer engagement: With built-in payment options, businesses can offer loyalty programs, subscriptions, and one-click checkouts that keep customers coming back. Streaming services leverage embedded payments for automatic renewals, ensuring continued engagement with minimal user intervention.

How do embedded payments work?

At the core of embedded payments is API integration. Payment providers offer APIs that allow businesses to integrate payment functionality directly into their platform. This eliminates the need for a separate checkout process or third-party payment portals.

Let’s break it down:

1. A user initiates a transaction within an app or platform.
2. The payment is processed in real-time using a secure, integrated system.
3. Funds are transferred seamlessly, often without requiring user intervention.

For businesses, this means payments can be managed directly, whether through a white-labeled solution or a customised integration tailored to their needs.

Who benefits from embedded payments?

The adoption of embedded payments is transforming multiple industries:

• Fintech & banking: Neobanks and financial platforms integrate payments to offer a smooth, all-in-one financial experience.
• Insurance: Customers can pay premiums, file claims, and receive payouts—all within the insurer’s digital environment.
• Retail: Companies can offer credit, BNPL (buy now, pay later), and wallet services directly within their platform.
• Travel & hospitality: Airlines, hotels, and booking platforms enable instant payments without redirection to third-party services.

How Edenred Payment Solutions is leading the market

Edenred Payment Solutions is redefining embedded payments with a flexible and scalable approach tailored for businesses across fintech, insurance, embedded finance, and travel. 

How we can help with embedded payments:

• Comprehensive embedded payment infrastructure: Edenred Payment Solutions provides a full suite of payment solutions, including account issuing, real-time payments, and digital wallets, allowing businesses to embed seamless transactions directly into their platforms.
• Regulatory compliance without licensing burdens: Many businesses face regulatory hurdles when embedding payments. Edenred Payment Solutions simplifies this process by offering compliant, ready-to-use solutions, eliminating the need for companies to acquire their own e-money licenses.
• API-first approach: With a developer-friendly API, Edenred Payment Solutions ensures quick and easy integration, allowing businesses to embed payments without disrupting their existing user experience.
• Customisable and scalable solutions: From scale-ups to large enterprises, Edenred Payment Solutions offers tailored solutions that grow with a company’s needs, supporting expansion into new markets without friction.

By leveraging our embedded payment capabilities, businesses can focus on innovation, enhance user experiences, and streamline financial operations—all while staying compliant and secure. Learn more about how we’re driving the future of embedded payments at Edenred Payment Solutions.

How to implement embedded payments in your business

If you’re considering embedding payments into your platform, here’s what you need to keep in mind:

1. Choose the right payment partner: Look for a provider that aligns with your business model and industry needs.
2. Prioritise security and compliance: Ensure the payment solution complies with regulations like PSD2, PCI DSS, and other financial security standards.
3. Focus on user experience: A smooth, intuitive interface is key to customer retention.
4. Leverage data for optimisation: Embedded payments generate valuable transaction data that can help refine customer engagement strategies.