Embedded Finance

How Embedded Finance is transforming online marketplaces

The evolution of online marketplaces

Among the thousands of online marketplaces today, the ease of digitized buying and selling has never been more convenient. The old days of not finding exactly what you need in the local store has transformed into everything you could possibly need being readily available, and only a click away from purchase and delivery. 

Furthermore, the opportunity for anyone to independently sell their own products and services through B2B, B2C, and P2P online marketplaces has propelled the way the world conducts financial business on a global scale. Merchants in their respective markets can now cater to larger consumer bases, breaking past previous geographical barriers, and users can access unlimited categorized products based on personal needs, wants, and price. 

In this evolution of marketplaces, the ever-changing landscape of e-commerce has always called for seamless, innovative customer experiences no matter the niche, product, or service, for both buyers and sellers alike. 

So what’s really the next step in the advancement of online marketplaces, especially with the fast-paced growth of competition

What will be the deciding factor in being the digital marketplace of choice to the many instead of the few? And how can online marketplaces improve to better serve merchants and users while continuing to move the world into the future? 

Enter Embedded Finance...

As e-commerce pioneers, competitive marketplaces have ushered in a new kind of financial experience. Leveraging embedded finance, marketplace ecosystems have transformed purchase behavior and reset expectations. 

By capturing customers where they interact most frequently in their daily lives, marketplaces are a natural fit to provide highly specialized financial tools and services fulfilling the increasing demand for financial accessibility worldwide. The emerging demand to directly offer consumers financial solutions expands business strategies, and further monetizes customer bases for a lifetime of growth, enhanced value, and greater profitability.

Out with the old, in with new revenue

The true power of embedded finance allows online marketplaces to provide end users with engagement and loyalty tools that increase platform use.  The small businesses on your platform can access business banking services tied directly to their sales on the marketplace. Consumers benefit from payment options and loyalty incentives, sellers benefit from seamless, fast payments into a dedicated account. With embedded finance, online marketplaces can drive new revenue streams by making money on all transaction types taking place on the platform, and issue branded accounts without requiring a bank. Money flows are streamlined, and all transactions occur natively on the platform.

When marketplaces take back ownership of their financial processing services and networks, the interchange fees that formerly went to the bank go to your company. Imagine a frictionless shopping journey where users don’t have to leave your platform to complete their purchases. Imagine instant payment features for sellers and freelancers in one place. And imagine the cultural connectivity of exclusive branded debit cards, and providing merchants uninterrupted access to their hard-earned money every day with instant payouts. 

Offering diverse financial services like branded accounts, peer-to-peer wallet payments, ACH/EFT transfers, cross-border remittance, prepaid cards and customized gift cards to increases customer lifetime value, and improves the overall customer experience. 

Providing financial tools that reduce the dependency on traditional banks opens the expansion into more markets by increasing customer adoption among the unbanked and underbanked populace. Online marketplaces can truly deliver the type of highly personalized financial services consumers want. 

Finally, take control of your financial network

Now that an online marketplace can own its financial network, you possess direct access to all of the transaction data as well. The same data banks use for their own financial gain is now private to your marketplace. This governing access to spend data can better align your marketplace with consumer spending habits and preferences, being able to see when, where and how card users are spending money 24/7. With complete financial transparency, your marketplace can boost core profitability through advanced analytics of spending data, target unrealized revenue through strategic marketing partnerships, and hone in on future promotion opportunities that can better serve your unique customer base. 

The flexibility and scalability of your marketplace is now unrestricted with access to next-level consumer insights. Your marketplace can now more efficiently track the supply and demand pipeline at massive scale, and in turn strengthen marketplace incentive alignment for both merchants and users, enhancing rewards programs with the data received directly from consumer spending. Whether offering exclusive discounts, merchant-specific cash-back options, or activating targeted rewards programs, online marketplaces can fuel brand advocacy in new ways progressing customer retention and solidifying customer lifetime value. 


Embrace the journey to better financial services

So how exactly can Alviere really elevate the core of any online marketplace? 

Alviere’s platform and services allows any online marketplace to integrate new financial services into existing lines of business to dramatically increase profits, deepen customer relationships and insights, and increase satisfaction and retention. Offering financial solutions like accounts & wallets, card issuance, streamlined payments, and global money transfers gives marketplaces the flexibility to build for today and expand into tomorrow to meet business objectives. 

The real shift is happening: Evolving marketplaces from platforms where you only make or spend money to platforms where you can make, manage, access, store, send, and spend money. When online marketplaces embed financial services, an endless upside of business opportunities emerge, forging the future of financial innovation, with your brand at the forefront. 

Written by Alviere