By Vijay Sondhi
NMI
Digital payments are everywhere. Whether it's hailing a ride, ordering food from an app, paying with a smartwatch at a self-checkout or buying tickets on the computer, online and in-app payments are the new normal.
Last year, more than 90 percent of consumers made a digital payment (see bit.ly/3YHJYje), representing a massive shift in consumer preferences. This new type of payment has been saturating the landscape for years, slowly replacing traditional cash and checks.
Now, as Gen Z and millennial consumers gain market share and move away from older payment methods in favor of fast, convenient virtual solutions, the need for seamless payment experiences will continue to grow.
This is where embedded payments come into play (see bit.ly/4cmSXcR).
Embedded payments make it easier to compete by enabling businesses to streamline the payment process. With this technology, payment professionals can offer merchants more choice and flexibility over how they take payments, from in-app purchases to recurring subscriptions to SaaS platform payments and beyond.
Over time, this will not only help merchants stand out from the competition, but it will also solidify your business as a payment provider they can turn to for leading-edge digital payment solutions.
No matter what the digital payments trend looks like for you, one thing is certain—almost everyone you know will make a digital payment this year. Are your merchants ready?
Embedded payments and, by extension, embedded finance refer to payment solutions integrated into digital platforms. That includes buying dinner through an app, paying an invoice via SMS, sending money to a friend with Venmo or paying a medical bill through a hospital's SaaS platform.
If you've ever paid for something digitally (including through a self-checkout kiosk at the supermarket), you've used an embedded payment solution.
The shift towards digital, embedded payments solutions is driving industry innovation by:
These solutions make payments more convenient, accessible and seamless. They make it easier for customers to pay, for businesses to get paid, and for software platforms and payment providers to generate new revenue streams.
The four strategic benefits of embedded payments
Embedded payments offer everyone in the payments chain—from small businesses to software platforms to payment providers—a strategic leg up. They make it easier to meet evolving customer expectations while positioning businesses at the forefront of innovation.
Expanding payment options with embedded solutions helps brands stand out in an increasingly saturated market. As younger, tech-savvy generations gain buying power, digital payments will become table stakes. After all, why would consumers carry cash if they could simply tap their watch or phone to pay?
Offering digital-first payment options enables businesses to capture a greater share of wallet while ensuring long-term growth and profitability. The market will only become more digitized; now is the best time for businesses to reevaluate how they take payments to set themselves up for future success.
Providing more ways to pay makes it easier for customers to buy what they want, no matter where or how they choose to shop. Do your customers want to use digital wallets? Pay over time with buy now, pay later (BNPL)? Eliminate the hassle of recurring payments by opting in to subscription services?
Embedded payments give businesses the tools to capture sales in more places while reducing the risk of abandonment. Flexibility, choice and convenience are top of mind for customers, and they'll look elsewhere if businesses are unable to provide the payment journey they expect.
There's an old saying that all you need to be successful are 1,000 "true fans." These are the people who live and breathe your brand and will always turn to you when they're ready to make a purchase. But what happens when those fans aren't as loyal as they used to be?
Sixty-two percent of Gen Zers will look into other options even when they have a favorite brand, and more than half are willing to switch brands if they find an alternative offering cheaper or higher quality products, according to a McKinsey survey (see bit.ly/3AwuEvK). In essence, Gen Zers don't tie themselves down, making it more important for businesses that take payments to provide exceptional experiences.
If you decided to sell your company tomorrow, how much would it be worth? Embedding payments solutions into its core offerings is a powerful way to elevate a brand's value. There are three key factors that make this possible:
By 2030, Millennials and Gen Zers are expected to account for 48 percent of all retail spending (see bit.ly/3AkGKbf). As the first digital natives, these consumers are less likely to carry cash or physical cards and expect seamless, embedded payment experiences everywhere they shop—online, in-app and in person.
As tech-savvy consumers reshape the financial landscape, payments will become less visible; they'll be so easy it will feel like you never even paid. Convenience is king, and businesses face a crucial choice: innovate or be left behind.
The biggest challenges most businesses face when adopting embedded payments are time, resources and support. Major players in the market are often costly and complex to integrate with, providing minimal online-only support instead of flexible, on-demand chat, phone and email options. They're also nearly impossible to unplug from when your business is ready to grow—a lose-lose scenario for ambitious payments organizations.
As you begin your search for an embedded payments provider, look for one that makes integration simple. The best provider will offer pre-built, no-code and low-code SDKs and APIs in a developer-friendly environment so your tech team can save time and resources. They will also offer revenue sharing so you can confidently offer the best payment options while growing your bottom line.
Embedded payments streamline transactions across platforms, devices and geographies. They're the gateway to the future for those ready to take the leap. 
Vijay Sondhi the chief executive officer of NMI, a global leader in embedded payments, powering more than $203 billion in payment volumes every year. From industry-leading payment gateway technology to seamless merchant underwriting, acquiring, onboarding and management platform, NMI enables its partners across the entire payments ecosystem. NMI helps partners deliver frictionless payment solutions to their customers, offering modularity, flexibility and choice, wherever and however consumers want to pay—online, in-store, in-app, mobile and unattended. And the company is constantly innovating, empowering ISOs, software vendors and payment professionals as they embrace the future of fintech. Learn more about NMI solutions and the future of embedded payments at The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.
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