Embedded payments revenue is set to exceed $59 billion worldwide by 2027, representing a growth of 84% from the $32 billion projection for 2023. These key findings from Juniper Research’s report, “Embedded Finance: Key Trends, Segment Analysis & Market Forecast 2022-2027,” highlight the rapid evolution within the embedded finance ecosystem.
As consumers continue to gravitate towards alternative payment methods, embedded finance will gain a stronger foothold, further undermining the use of cards within the e-commerce space.
Lots of Payment Options: Too Much of a Good Thing?
Although having a multitude of payment options makes it convenient for consumers, there must be a balance. Sure, offering many payment methods can drive new business, but too many payment options could potentially clutter and complicate the checkout process.
Juniper’s Research co-author Nick Maynard told FinTech Global:
“In order to rein in the expansion of different payment options at checkout, merchants looking to enhance their checkout process must focus on the most popular and lowest-cost-to-merchant options to drive their success. Focusing on instant payments‑linked channels will lower costs significantly compared to card payments and must be considered a top priority for merchants.”
B2B Must Get Up to Speed With Embedded Payments
The research also found that 35% of revenue from embedded payments will come from the B2B sector by 2027. While this is good news, what has been discovered is that this segment has been slow to adopt new payment methods, likely attributed to convoluted accounts receivable and payable processes.
By utilizing embedded finance solutions, B2B businesses will be able to amplify their revenue streams. Not doing so will mean they will be losing out to competitors.