Embedded Payments in Businesses

Embedded payment systems are not new in the world, but since the pandemic, many businesses are starting to use them more often. As more businesses start to have a more online presence and online shopping options are becoming more prominent, embedded payment systems are becoming more common.

In the digital world there is a wide variety of threats that can put consumers and businesses at risk. It makes an individual wonder how safe it is making an online payment. 

At PayPugs we strive to ensure that our clients are always in the loop. That is why we want to help answer these questions by also explaining what embedded payment systems are and the different options a business can have for implementing one. 

What are embedded payments?

Embedded payments is a process businesses are using more often, because it allows payments to be made through the use of the businesses’ software. Essentially it is when a payment transaction is made through the use of a banking app or website and it allows the business to have control over their payment process. 

Many modern businesses are using embedded payment systems today, for instance Uber uses it to help their drivers make an income. This form of payment is becoming more popular in businesses due to the benefits it has for the business and the clients.

Benefits of using embedded systems

For the clients 

In regards to the clients, having a business use embedded systems for clients to make payments makes the process much more efficient and trustworthy. Using embedded payment systems allows clients to make payments on the website itself and not on a separate page. This encourages end-users to feel safe when making transaction on the business’ website. 

For the business 

Embedded payment systems allow businesses to have more control over the user experience. This promotes financial control within the business which allows there to be extra revenue to be generated in the business. Furthermore, this control enables the business to establish transparency for the business between its partners.   

Another benefit of embedded payment systems for the business is that it allows there to be additional services. Today there are platforms with embedded payment systems that promote the use of credit, structured payments, and insurance services to add value to the platform. This allows businesses to grow and expand to remain relevant in the market place and gives them  a competitive advantage. 

Embedded payment systems have benefits for the business and for the clients, they promote transparency, are a more efficient payment option, and help prevent fraud from affecting clients. Overall they are a great option for businesses to invest in, but how are businesses embedding and launching payments in their software?

Businesses and embedded payments

A business needs to look for an embedded payment system that is well-integrated and user-friendly for the business and clients. When a business decides that they want to use an embedded payment system there are a few ways they can approach this.

The first approach is that the business decides to become a payment processing company and make their own system. This is a time consuming process that needs the business to meet certain requirements in order to register as a payment facilitator. This is also expensive and there is a risk that if the business does not have specialists working on the system, they might have to backtrack and spend more time and money to fix it.

The second approach is to employ a software company to create an embedded payment system for your business. This approach is usually taken by larger companies who want their own customised version of an embedded payment system. This is an expensive option but the payment system does become fully-integrated with the business and is user friendly. 

Another approach is to use a third-party fully-integratable system. For this approach a business would find a system that they can integrate into their website that another company has already created. For instance businesses that sell their products online would use a program like PayPugs as it is a user friendly program and it can be easily integrated. This approach is an easier, more time and cost efficient option that is preferred by businesses as clients are already familiar with most applications that are being used.    

Many of these options are safe and can help prevent fraud from occurring for clients. By implementing one of these options to gain an intelligent payment method it will make transactions between the business and clientele time efficient and more convenient. 

Society is gradually becoming more digitally oriented, in order to grow and keep up with clients we need to make the market more suitable for them. Embedded payment systems are safe and convenient applications that can help your business stay relevant in the digital age. By implementing an embedded payment system into your online website can make the process more convenient for the clients and give your business a competitive advantage in the market. 

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