PALO ALTO, Calif. /ACCESSWIRE/May 20, 2022 / Nearly half of non-financial companies in the United States already invest in integrated finance and intend to launch it, according to a new study report titled Integrated Finance Market Analysis from the top financial technology company Whillet in California.
The report also found that 88% of those who have already implemented integrated finance in their business are satisfied with the integration, and 85% say it has helped them win more customers. Embedded finance is expected to grow at a staggering 215% over the next five years.
Basically, embedded financing refers to the use of financial instruments by non-financial businesses. It allows any type of business or online store to integrate banking software directly into their websites or mobile apps.
The new Whillet survey is its third and final report on the North American fintech market, having already made available survey documents on Mexico and Canada. In the course of the study, the main factors for the development of the integrated finance market and the advantages of the implementation of the technology for the traders, as well as the new trends and characteristics of the main players have been considered, as well as phenomena such as PayFac and PSP have been analyzed in depth.
Advantages over reselling services
Embedded finance, rather than the resale of financial services, is attractive to brands and digital sellers because it generates new revenue streams at very low marginal costs. The brand implementing it usually already has a customer base, and embedded finance helps develop a more qualitative approach to revenue generation. This creates a unique customer experience that encourages loyalty and repeat purchases, while enabling merchants to better understand the economics of relationships.
Integrated finance can be a tremendous engine of development in almost every area of our lives, and the report highlights some such insights. Whillet’s study examines in depth all aspects, explicit and implicit, of the integrated finance function and gives several projections of how can, and most certainly will, penetrate the integrated finance market and help it to grow in the years to come, keeping in mind current trends. .
The in-app payments market will grow due to a number of emerging motivators:
- Desire to share personal data. Many startups will likely explore and use this opportunity to extract more profits.
- Growth of subscription services. The trend-accelerating effects of the pandemic have extended to the subscription economy, which will double to $1.5 trillion by 2025.
- The rapid expansion of the marketplace market (300% each year), as well as a shift in customer behavior towards e-commerce, again aided by the pandemic.
There are also several industry trends that are often linked to the development of new financial services solutions and internet platforms aimed at a specific market sector:
- Health. An innovative technology infrastructure that will connect healthcare providers to lenders for the flow of capital and fast and transparent financial transactions. As a result, patients will have better access to health services.
- Real estate. An Internet-based platform that allows tenants and property owners to enter into transactions directly, without the need for tenant brokers. Can help with a variety of common issues, such as deposit escrow and tenant insurance to protect both parties.
- Transportation. Carpooling companies have already developed transparent payments for consumers in the transport sector, and they are now extending this to the insurance market by offering a special insurance scheme for their cars which is only valid for the period in line.
- Municipal management. Cities have great potential to derive from financial digitization, and citizens can benefit from integrated finance since it centralizes their financial data and allows local authorities not only to create new solutions, but also to improve and adapt existing services and policies.
Generally, analysts distinguish three or four players in the fintech process. Each actor provides specific services to one of the actors that together constitute the complete process of implementing and using fintech:
- Providers – government-licensed banking institutions that themselves produce financial services which are then integrated into various platforms.
- Enablers – these are the channels through which information and data is exchanged between suppliers and distributors, usually using APIs.
- Distributors – these companies aggregate services from many sources to create a platform or network that opens up access to the best solutions to end users (consumers).
About Willet
Whillet is a next-gen fintech solution, based in Palo Alto, CA. It provides integrated financial services allowing customers to open digital wallets for their users and manage them using Application Programming Interface (API) integration. As a BaaS provider, Whillet manages all licensing requirements, relieving the customer of this responsibility.
It mainly focuses on the B2B and B2C markets. Whillet’s fintech solution enables global installation and support of all processes. This includes websites, apps, marketplaces, and other platforms set up for client users, facilitating things like bank accounts, e-money accounts, and bonus accounts.
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THE SOURCE: Whillet
See the source version on accesswire.com:
https://www.accesswire.com/702185/Whillet-Announces-the-Results-of-Its-Study-on-the-Embedded-Finance-Market-in-the-USA
