Embedded Finance Ecosystem: Mapping the Path to Services Industries’ Transformation

February 2024

Embedded finance is the critical factor to improve customer journey and drive transformation for services industries.. With travel recovery and sluggish volume sales of automotives, embedded finance is considered to have the most potential to build and enhance partnerships to support their market value sales growth. Meanwhile, behaviour finance backed by privacy computing and fraud detection will have great long-term impact for healthcare

USD 1,475
Request More Information

Delivery

This report comes in PPT.

Key Findings

Seamless finance experience critical for overall customer journey

Finance enables the transactions for all goods and services, so improvement of customer satisfaction of overall customer journey highly depends on the finance experience.

As payment is mostly used and visible to end customers, the success rate, speed, cost and security of payment is most critical among all embedded finance products and services.

Expand payment options with a single integration

Increasing diversity of payment methods and complexity of local payment markets make payment a challenging task for non-financial firms, especially those expanding overseas.

With value-added services in collection and fraud management, payment aggregators which support a single integration for most cards, digital wallets and fast payment are rising.

Mobility and travel perceived to bring most potential for embedded finance development

Ride hailing verticals demand solutions in payment, lending and insurance for drivers and riders, while manufacturer verticals desire in-vehicle finance solutions.

Travel recovery relies on cross-border transaction solutions, as well as saving goals and fast commercial payout for travel suppliers, to improve consumer and merchant experience.

Dine-in online in foodservice and behaviour finance in healthcare

It is priority to capture opportunities in chained foodservice to scale, while growing standard finance solutions for independents for QR ordering with payment and kitchen processing.

Embedded behaviour finance tracks consumers’ exercise and wellness to drive dynamic pricing in finance, benefiting consumers (better health) and businesses (lower risk).

Download Table of Contents
Scope
Key commerce developments in 2023
Customer experience and diversity of payments critical for services industries
Why relevant for regulators, financial services, mobility, travel, foodservice and healthcare?
Structure of the strategy briefings in embedded finance
Embedded finance is the fuel driving growth of multiple industries
Financial firms can hardly compete with non-financial businesses on usage frequency
Mapping key leaders of embedded finance solutions in key industries
Where can finance be embedded into mobility?
Shared mobility companies have been pioneers in delivering embedded finance solutions
Case study: Grab launches GrabFin to provide single point of entry to its financial products
Embed Bluebird taxi hailing service into BCA digital banking app
Case study: Careem and PaySky partner to provide instant payment services
Stripe is expanded to have footholds in three key areas of mobility
Nearly all major automotive brands are exploring embedded finance solutions
Ant Group powers highway toll fee payment and parking payment in Hang Zhou, China
Baidu enables New Link’s Tuanyou (FleetIn) tech for petrol payment
Baidu powers Chery Motor for AI assistant and in-car payment for movie tickets
Baidu enables Ford Motor for payment of in-car services in Ford’s SYNC+ system
UnionPay powers Sonicboom for frictionless car parking payment in Malaysia
Case study: Mercedes-Benz partners with Mastercard to deliver in-car payments at POS
Case study: Hyundai Pay launched in the US with payment for parking being its first service
Mitsubishi, EZ-Link and NETS power LTA launching road pricing 2.0 system in Singapore
While opportunities for embedded finance are big, key challenges need to be addressed
Finance embedded in every key phase of the customer travel journey (1)
Finance embedded in every key phase of the customer travel journey (2)
Finance matters to the customer experience of frequent travellers
CIMB enables TNG’s GOinvest to push travel goals: Embed “invest now, pay later”?
Travel intermediaries adding BNPL to maximise conversion
Traveloka partners with Bank BNI on BNPL
Stripe powers Airbnb’s bank payments for guests with US bank accounts
Air Canada picks Hopper to embed protection on flight cancellation for any reason
Bolttech building in-app travel insurance in Trip.com’s app
NEC builds biometrics system for Star Alliance for authentication and loyalty
UnionPay & Ant Group competing head-to-head internationally
Visa assists Airbnb for fast payment to hosts by Visa Direct
Mastercard enables Agoda for B2B commercial transactions
Opportunities and challenges of embedded finance in travel
Key financial and non-financial activities in customer journey in foodservice
Embedded finance plays critical roles in key phases of foodservice customer journey
Fees and cash as key issues for foodservice
Challenges to install multiple POS devices from delivery with fast-changing landscape
Foodpanda Malaysia adds e-wallet option with TNG and Alipay+ to support growing services
Singapore coffee shop Huggs collaborates with Ant Group to enhance consumer convenience
Deliveroo partners with Stripe as its key payment solution provider
Ant Group partners with Restaurant Brands International to further its digital transformation
Stripe embeds finance solutions in Dripos’s platform to serve coffee shops
Stripe and SUNMI power Oddle to accelerate transformation of foodservice SMEs
Adyen powers TabSquare to upgrade payments and analytics for foodservice
Recovery of eat-in, while online ordering grows
Fragmenting foodservice market means high-volume but low-value finance opportunities
Opportunities and challenges of embedded finance in foodservice
Embedded finance driving digital transformation of healthcare industries
Consumers’ health concerns and smart wearables critical to embedded finance in healthcare
Health issues impose heavy burden on healthcare systems which require transformation
Stripe powers LegitFit to offer integrated fitness management software
Alipay enables credit payment for health insurance system across cities in China
Fundiin launches BNPL with Pharmacity for medicine purchase in Vietnam
Plastic surgery platform So-Young provides financial services, facing regulatory pressure
Discovery Group’s Vitality programme embedded in behavioural insurance and banking
AIA and Whitecoat co-create digital claim processing for tele-consultation service
WhiteCoat telemedicine service linked to (not fully embedded in) AIA App
Cathay Life Insurance introduces “spillover insurance” to improve healthy lifestyle in Taiwan
Stripe powers Australia’s Eucalyptus for international expansion
Opportunities and challenges of embedded finance in healthcare
Digital transformation: Barriers hindering digital effectiveness
Privacy and security are key consumer concerns on embedded finance
Finance expertise, privacy and security critical for success in embedded finance partnerships
Euromonitor’s cross-industry impact analysis to assist formulating strategies
How to access Fintech topic page and Loyalty topic page
Customer journey at Harry’s QR table ordering system powered by TabSquare
Key definitions in foodservice (1)
Key definitions in foodservice (2)
Key definitions in foodservice (3)

Payments and Lending

This is the aggregation of Financial Cards and Payments, Mobile Payments, Transactions, and Consumer Lending.

See All of Our Definitions
Share:

NEW REPORT GUARANTEE

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!

© 2024 Euromonitor is privately owned & trademarked. VAT No. GB: 239-2559-40 Registered in England No. 1040587
;