A shopping card to which a banknote is attached via paperclip, symbolizing Embedded Finance

Embedded Finance – What It Means (For Banks and Tech Firms)

Traditional banking houses no longer hold the monopoly on offering financial services. Instead, companies whose core business initially laid outside the financial sphere have adopted what’s called Embedded Finance. This means that they offer financial services as add-ons and parts of the regular user journey on their platforms. 

Originally, financial services were embedded in online shopping or service platforms. Yet companies in other application areas adopt this practice, too. Thus, nowadays we arrive at a big list of different finance-embedding enterprises including: 

  • E-Tailers
  • Online marketplaces
  • Comparison portals
  • BigTech companies
  • Logistic and transportation firms
  • Car manufacturers
  • Social media giants
  • And many more…

What all these diverse companies have in common is their aptitude for digitization. They already deliver on the tech front, mostly; the fin just has to follow. And even as most such companies only started to develop their financial service (or finserv) portfolio, they have vital advantages over competitors:

  • A widely known branding that many customers are familiar with from their everyday purchases.
  • A streamlined user journey, into which the financial services can be embedded easily.
  • An affinity towards innovation and digital transformation – many of them have already shaken up their own areas of operation and are well known for it. 

This mixture allows those new finserv players to quickly scale and activate a broad customer base when compared to cold-starting fintech companies. 

But what is Embedded Finance exactly? And should banks or fintech companies care? 

Examination underway… 

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A hand holding a smartphone over a point-of-sale device, symbolizing the choice of a Payment Service Provider

Payment Service Providers: How to Find One For Your Business

Let’s spill the beans: You are in the e-commerce business for profit. Not solely for the profit perhaps. But it’s clear that you want to make money. And that means you must figure out how to get paid for the goods and services you offer online. The “how” is crucial: The choice of the Payment Service Provider you want to trust with processing your transactions with customers will resonate in every nook and cranny of your day-to-day operations. If payment doesn’t work, you won’t sell anything.  

That’s true all the more if you are operating in multiple countries or across borders – preferences in Payment Service Providers (also called PSPs, Payment Solution Providers and sometimes Merchant Service Providers) fluctuate among nations and demographics. 

Here’s the good thing: Whatever your business requires, there will be a Payment Service Provider with the right capabilities. That friendly online encyclopedia counts around 900 different Payment Service Providers worldwide, 300 of which cater to Europe and North America. 

Now, you can see why the good thing is the bad thing at the same time. With so many options, how could you track down the best Payment Service Provider – the one that fits your business model and your market? 

That’s the challenge this article is here to help you with. In the following paragraphs we will provide: 

  • A short definition of Payment Service Providers
  • A compilation of decision points and criteria, which will help you determine what kind of payment your business needs
  • A plan B to fall back on when none of the options offered by a single Payment Service Provider appeals to you. 

Let’s see if we can narrow down your options. 

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A picture of the "chance" square on a Monopoly board, symbolizing the opportunities of re-built payment systems

Why You Should Change Your Legacy Payment System

You have a big problem with your payment system. 

At least that’s why we suppose you read this article. 

Maybe your business just started, but the payment system you integrated already struggles to meet customer expectations. Or you run an established platform, but your legacy system has grown into an inflexible and costly monolith of different providers.

If you work with a particular provider like PayPal or have integrated a variety of individual acquirers or PSPs, you cannot excess full control over your payment. For example, feature updates, security or transaction limits and fees lie outside your agency. 

However, perhaps your transaction system runs just fine, it is functional and flexible. But have you utilized its full potential yet? Have you thought about adding e-money wallet functionalities to enable P2P transactions, loyalty point systems or quick refunds? 

Whatever of the above is the case, this article is for you. It will discuss how you can turn your legacy system into a version that better suits your needs. By finding a proper payment solution provider and adding payment orchestration and e-wallet functionalities, you will be able to take back control. 

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A car computer of a modern car, presenting digital content and e-commerce options

Automotive Payment Solutions – Fast Lane to Car Maker Success

The future of automotive will not be about how fast your car can go. Or how snappy it can look. Instead, innovation will centre around what a car can do. As a manufacturer, you already witness the shift towards connected vehicles with high-end telematics and web-enabled computers under the hood. Those cars can communicate with external e-commerce applications and service platforms.

And that comes with technical challenges. One of the most pressing for car manufacturers: Providing a solid automotive payment system to handle all in-car commercial activities. 

One may be tempted to turn to the obvious choice: Turn-key payment software by 3rd parties. But once you scale up, the drawbacks surrounding such off-the-shelf solutions begin to show.

The alternative would be to choose the payment orchestration model and build up your very own connected car payment infrastructure. You can bring in a business and/or a software partner with experience in the automotive payment domain to support you there.

This article will help you answer, whether this approach fits your business. It discusses: 

  • Which use cases require connected car payments?
  • What are the advantages of custom-built automotive payment solutions over standard 3rd-party payment systems?
  • How will you benefit from payment orchestration? 
  • Where to find competent technology partners to support you?

Let’s go for the answers! 

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A computer mouse resting on a bundle of euro banknotes, representing electronic money or e-money, respectively

What Is E-Money – Definitions, Processes, Challenges

E-money, short for Electronic Money, is the electronic alternative to cash. Since it started as a concept in the 1980s and rose to prominence during the Dot-Com era, it has acted as one of the biggest game-changers in the financial industry. In a matter of only four years, from 2014 to 2018, the number of electronic money transactions in Europe alone doubled to more than 4 billion. 

This aspiring form of money deserves our attention. To provide a starting point, this article will give an overview of: 

  • The definition of e-money as a whole
  • The subtle distinctions in its applications
  • The process of electronic payment with e-money
  • The potential downsides of e-money
  • And finally, e-money licencing and who should apply for such a license  

Let’s start!

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