Embedded Lending and BNPL Are Changing the 2023 Payment Landscape

In recent years, the growth of fintech has led to significant changes in the financial industry. 

One of the latest trends in Fintech is embedded lending, a strategy that allows businesses to provide financing directly to their customers. This approach is becoming increasingly popular among companies looking to expand their customer base and increase revenue. 

As the financial landscape continues to evolve, innovative payment solutions will be essential for staying ahead of the competition. For example, Buy Now, Pay Later (BNPL) platforms are gaining traction as one of the most popular forms of embedded lending for B2C businesses.

According to industry reports, the US embedded lending market is predicted to grow at a CAGR of 27.5% in the coming years, with the global BNPL market projected to grow at an even faster pace. Industry players are investing heavily in research and development to improve the technical features of BNPL systems. 

Strategic initiatives, including joint ventures, mergers, acquisitions, and collaborations, are being implemented to help firms and market players gain a stronger presence in the global BNPL market.

Advantages of BNPL

The benefits of implementing embedded lending and BNPL in your business are numerous. Some of the most significant advantages include higher conversion rates, greater average order value, more customer insights, fewer abandoned carts, and more repeat business. 

As consumers continue to shift from traditional to online shopping, flexible payment options are becoming increasingly important for businesses looking to stay competitive.

Tips for Implementing BNPL

To implement embedded lending and BNPL solutions in your business, we recommend businesses work with a reliable partner who has expertise in developing these systems. 

When BNPL is implemented correctly, you will ensure your customers will have less risk of chargeback, more choices of installment payment plans at checkout, and payment methods that suit their budgets.

With the right partner, businesses can develop BNPL solutions that will provide them with a competitive advantage, increase revenue, and improve customer loyalty.