The year 2024 has been marked as one of the most innovative years in the payments industry since the onset of the pandemic. One of the key trends that has emerged is the liberation of capital, where money movement is becoming more intuitive and friction-free, seamlessly integrating into various aspects of commerce.
Chief Innovation Officer of Ingo Payments, Joseph Akintolayo, highlighted in a recent interview with PYMNTS the concept of “embedded everything” in payments. This involves putting money directly into the hands of consumers through mobile devices and other technologies, creating new opportunities for businesses and financial service providers along the value chain.
The driving force behind embedded finance is the desire for seamless transactions with minimal steps from the consumer’s perspective. This trend is pushing banks and payment companies to adapt and meet the evolving expectations of their customers, especially in the face of competition from FinTechs.
The competitive landscape in the payments industry is expanding, benefiting consumers and stakeholders alike by increasing transaction volumes and fostering wealth creation. Akintolayo pointed out that there are numerous opportunities for embedded finance in various verticals such as travel, transportation, logistics, and gig work.
One of the key advantages of embedded finance is the ability to streamline payment processes in different industries. For example, tradespeople like plumbers can receive instant payments on-site, eliminating the need for paper invoices and long waiting periods for payment. Additionally, with the rise of open banking, aggregators can access consumers’ financial information to facilitate quick credit decisions and fund transfers.
Beyond the transactional benefits, embedded finance has the potential to enhance financial wellness and inclusion. By partnering with trusted entities like churches and nonprofits, financial institutions can extend their services to underbanked and underserved populations. Advanced technologies such as AI and machine learning can also be leveraged to assess creditworthiness and provide access to credit for individuals with limited financial history.
Ingo Payments has been at the forefront of connecting various ecosystems and supporting compliance, risk management, and ledgering processes to make embedded finance a reality. The company’s advanced cloud-based ledger ensures transparency and real-time visibility for all parties involved in a transaction, ultimately enhancing customer loyalty.
As embedded finance continues to gain momentum, it is expected to improve customer experiences by making financial transactions more convenient and seamless. In a society that values convenience, embedded finance is set to revolutionize the way we interact with money and financial services, ultimately driving innovation and progress in the payments industry.
