What can software companies expect in 2024 when it comes to embedded payments? This episode of the PayFAQ Embedded Payments podcast, featuring our host Bob Butler and special guest Ian Hillis, senior vice president of growth at Worldpay for Platforms, offers some surprising insights as well as news about the future of our podcast itself!
The conversation starts with what Hillis describes as a “bit of a hot take.” As the software used by SMBs has become more and more vertical, he says what’s been most transformative in the industry of embedded payments in recent years is not the technology. “Software companies are now increasingly seeking payments partners that are more consultative in nature, ones that can really understand unique user flows and ensure the financial experiences that are being created match the desired user experience. They’re no longer satisfied with the partner that simply enables payments or financial tools.”
Like the evolving role of payments partners, Hillis give us his take on what will have a transformative effect on embedded payments going forward. Compliance and risk are two big areas, with PCI compliance 4.0 launching in February and the increasing popularity of surcharging. He predicts card networks will become more involved with surcharging and expects to see regulation on how when AI and ML can be used in risk and underwriting flows.
Hillis is also excited about the prospects of conversational commerce (formerly known as text to pay) and how it often intersects with payment functionality; omni capabilities and offerings for managing both in person and online experiences; and embedded finance products, like lending and commercial cards, where data sitting in existing payment integrations can be leveraged to make a seamless experience.
To make since of it all, Hillis’ advice is simple. “Have conversations with humans. Payments is incredibly complex. As software continues to increase in specialization and verticalization, the benefits of picking up a phone and talking to people who can empathize with the unique needs of your customers is going to be a really worthwhile opportunity.”
Be sure to listen to the end for news about Bob and this podcast series. Here’s a hint – You’ll be hearing more from Hillis on a regular basis.