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Insights and Expertise

How wallets and Wallets and embedded finance are
now table stakes at the POS
embedded finance At our recent Payments Disrupted forum, co-hosted with

Visa, industry leaders made one thing clear: wallets and
are reshaping embedded finance are part of a broader push for friction-
less, contextual commerce. The merchants of tomorrow
want payment systems that flex with their customers. And
merchant-acquirer they want a partner who can help them do that securely
and compliantly.
value That's what merchants are looking for now: embedded

payment capabilities that don't create new points of fail-
ure. For example, many retailers are asking for real-time
payment routing based on customer preference and chan-
nel. Some want to tokenize loyalty benefits directly into
the wallet flow. Others want embedded lending options
that are SCA-compliant, regulated and approval-rate op-
timized.

This is where the value of regulated infrastructure shines.
With increased scrutiny on deferred payment models and
evolving mandates around Consumer Duty, merchants
are looking to banks and trusted providers to offer com-
pliant finance, not just flashy integrations. An approach
that works is to combine API-based flexibility with enter-
prise-grade onboarding, risk and compliance oversight.

By Ross Taylor Why infrastructure matters more than ever
Lloyds Merchant Services
For merchants, digital wallets and embedded
he payments world is evolving fast, and for finance have shifted from optional extras to
merchants, the role of infrastructure is more essential capabilities. Customers expect Apple
important than ever. Digital wallets and embed- Pay, Google Pay and flexible financing options at
T ded finance have moved from the margins into checkout, whether in-store, online or on mobile.
the mainstream. The next generation of merchant value is But the real challenge lies behind the scenes:
being built on speed, flexibility and control. The partners building the infrastructure to support these
who can deliver that without compromising risk or com- experiences without adding risk or operational
pliance will lead the pack. complexity.

At Lloyds Merchant Services, we see this shift up close. It's not enough to switch on new payment
From fast-growing ecommerce businesses to global re- buttons. Each option must integrate seamlessly
tail platforms, merchants want payment acceptance that with fraud checks, settlement flows, loyalty
works wherever their customer is: in-store, on mobile or at programs and regulatory requirements. That's
the digital checkout. why orchestration is emerging as a competitive
differentiator. Merchants want platforms that
Wallets like Apple Pay and Google Pay are now standard simplify reporting, ensure compliance and
expectations, not optional add-ons. Embedded finance deliver real-time insights, all while preserving
tools like BNPL and installment plans are reshaping the speed and flexibility.
checkout conversation, giving customers more control and
giving merchants new ways to convert. Trusted partners who can provide durable,
scalable infrastructure, marrying API-driven
But enabling this shift means building smarter infrastruc- innovation with enterprise-grade oversight, will
ture behind the scenes. It's not just about adding another define the future of payments. For merchants,
button at checkout. It's about how that option integrates it's about more than features; it's about clarity,
with risk rules, settlement flows, fraud checks and loyalty confidence and growth in an evolving landscape.
programs, as well as how easily it works across channels
and geographies.
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