In today’s fast-paced digital world, merchants and their customers expect convenient experiences when it comes to making payments. Embedded Payments have emerged as a solution that offers a multitude of benefits for software businesses and their customers. By integrating payment options directly into software platforms, businesses can provide a frictionless and intuitive payment experience that enhances customer satisfaction and drives revenue growth.
Embedded Payments enable software companies to bring payments directly into the software, enhancing the overall customer experience and creating a new revenue stream. This leads to increased customer retention and loyalty, as well as giving your software solution a competitive edge.
This article outlines the key benefits of implementing embedded payments for your software company and its customers.
Embedded Payments are here to stay
The 2022 McKinsey Global Payments Report reports global payments revenue grew by 11% in 2021. It’s the highest level of growth since 2017, coming in at $2.1 trillion globally. The five year outlook expects global payments revenue is expected to reach $3 trillion by 2026. Recent growth in payments revenue has been driven by the move to cashless payments throughout COVID-19, customer demand for seamless payment experiences and the ability of technology infrastructure to deliver more control and visibility to companies over its payments processes and finance features. This opens up a world of opportunities for software companies.
By bringing payments in platform, software companies can enhance the overall customer experience, create a new revenue stream, and build out products that provide greater customer stickiness and loyalty.
The benefits of Embedded Payments for your software company
he core benefit of implementing embedded payments for your software company is the significant improvements it brings to the customer experience (CX). And through improved CX, companies can expect to decrease churn by 10% to 15% and 80% of B2B companies expect a purchase experience similar to a B2C experience. Some of the core CX benefits of Embedded Payments include the following:
- A frictionless experience: Payments happen every day, and keeping that experience within your platform provides the best CX possible and helps eliminate friction for customers. Further, by being able to manage the payments experience, you can control the entire customer service experience leading to more loyalty among your subscriber base.
- More value for the money within the software: Embedded Payments allow you to be best-of-breed within your vertical while providing the functionality and convenience of all-in-one software. By offering your customers more features that improve the CX, you provide greater value, which leads to stronger customer stickiness.
- Brand building: Enhancing your software offering by implementing an Embedded Payment solution helps you stand out in a competitive market while establishing a new revenue stream. This can contribute to top-line revenue growth and be reinvested in growth initiatives, which is particularly valuable in an economic downturn. Those companies that focus on growth in these times typically overtake their competitors as the economy recovers.
- Stronger customer loyalty: Over two-thirds (67%) of customers that have a positive CX are likely to remain a customer longer and spend more money with your company. As your company builds on the three benefits above, it compounds, resulting in more loyal customers and more new customers too.
From here, further benefits flow, including the growing store of data available to analyze and continually improve the company, along with the ability to expand into further embedded finance offerings that bring more functionality to your platform. These long-term benefits outside of CX drive a strong return on investment for your Embedded Payments solution.
Grow revenue and make your payments intuitive with Payrix
Bringing payments in platform not only creates a better customer experience, which leads to stronger customer retention and loyalty, but it also provides a new revenue stream too. And in some cases, software companies can even expect their payments revenue to exceed their SaaS revenue. It’s a powerful opportunity, opening up possibilities to drive changes to your entire business.
Explore our videos to hear from customers and payment experts how Embedded Payments have solved business challenges.