Here’s why crypto companies need to focus on embedded finance
A new DECTA study has highlighted the importance of embedded financial functions in today’s fintech world. As online shopping and digital payments become the norm, study pointed out some of the key factors that provide a seamless experience for customers.
Embedded finance is a new type of software distribution that works with financial infrastructure providers to incorporate financial services into existing product ecosystems. The most common embedded financial offerings include banking, lending, insurance, payments, and branded credit cards.
According to research, fast payments and the availability of the chosen payment method are the most important elements for a satisfying online shopping experience. Lack of a preferred payment method or friction during checkout is a top reason for failed purchases, with almost 49% of respondents saying they would likely stop shopping if they encounter these issues.
How Web3 could revolutionize loyalty programs
Personalized offerings have proven to be one of the key features of embedded finance, a feature that is appreciated and could be improved by focusing on different demographics. For example, 54% of Americans prefer integrated add-ons such as financing and insurance. Gen X members were most satisfied with personal offers, while Gen Z members and Baby Boomers gave lower rated offers.
Loyalty rewards, hassle-free payments, and one-page checkout are some of the other preferred built-in features that were favored by respondents.
While crypto companies are slowly trying to integrate built-in financial features, be it credit cards or crypto-based loans, the research can definitely provide insight into targeting and customer acquisition. Cryptocurrency companies are exploring loyalty rewards and are also helping mainstream firms implement these embedded financial services using blockchain.
The crypto ecosystem saw an influx of institutional investment during the latest bull market. Some of the largest Fortune 500 companies and traditional hedge funds jumped on the crypto bandwagon, giving a glimpse of the mainstream adoption of crypto.
However, there is still a long way to go before the focus is on making crypto a daily driver for retail users. Embedded finance research can help crypto companies take a cue from the mainstream and implement it with crypto-related products to improve the customer experience.
Credit : cointelegraph.com