New IDC research commissioned by Edenred Payment Solutions finds more than 75% of respondents see strategic value in embedded payments, yet only 10.8% of businesses using them report a fully integrated experience.
Edenred Payment Solutions has announced findings from new IDC research commissioned by the company, exploring the evolving landscape of embedded payments and payouts for software and financial services companies and the businesses using these capabilities in the UK.
More than 75% of respondents see strategic value in embedded payments, recognising their potential to streamline operations, strengthen competitive differentiation, improve customer retention and create new opportunities for growth.
Yet the research reveals a significant gap between that strategic potential and the experience businesses have today. Only 10.8% of businesses using embedded payments and payouts say their payment and payout experiences are fully integrated, while more than half report only basic or limited integration.
Three challenges stand out in particular:
Transparency: 67% of businesses cite data transparency and payment status updates as a shortfall in their payout experience.
Speed: 56% cite the speed of funds availability.
Fragmented tooling: 58.5% of businesses use four or more systems across payment processing, reconciliation and reporting.
The wider findings reinforce the challenge. Only 40.5% say they have a mostly or very transparent view of their payment data. Managing payments across multiple systems can make it harder to reconcile payments, maintain visibility and make effective use of payment data.
“Businesses increasingly recognise the strategic value embedded payments can bring, but there is still a gap between that potential and the experience they have today. Visibility, speed and fragmented processes can all make payments harder to manage and limit the value businesses are able to realise.
“For software and financial services companies, that creates a real opportunity to go beyond simply offering payment capabilities. By addressing these operational challenges and making payments easier to manage, they can deliver greater value to their customers and differentiate through the payment experience they provide,” said Rehana Mitha, Managing Director, Edenred Payment Solutions.
The findings highlight an opportunity for software and financial services companies offering payment and payout capabilities to better address the operational needs of the businesses they serve. As embedded payments become more strategically important, providing greater visibility, flexibility and simplicity can become an increasingly important source of differentiation.
Download the full IDC research: Embedded Payments: Strategic Promise Meets Operational Reality
