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Future of Crypto: Why Embedded Finance Matters

Future of Crypto: Why Embedded Finance Matters

A recent study conducted by Decta emphasized the significance of embedded finance features in today's fintech industry.

With digital payments and online shopping becoming the norm, the study highlighted crucial drivers for a seamless customer experience, including preferred payment options, quick payments, and personalized offers.

Embedded finance is a new software distribution approach incorporating financial services into existing products’ ecosystems in collaboration with financial infrastructure providers. The most popular embedded finance offerings are payments, banking, lending, insurance, and branded credit cards.

The lack of preferred payment options or friction during the checkout process is a significant reason for a negative shopping experience, with 49% of respondents stating they would likely stop shopping if these issues occurred.

Personalized offers were highlighted as one of the essential features in embedded finance, with a 54% preference among Americans for integrated add-ons like financing and insurance.

In addition, the study revealed that Generation X participants were most satisfied with personal offers. In contrast, Gen-Z and Baby Boomer participants gave the suggestions they received a lower rating. Other preferred embedded features that got respondents’ approval include loyalty rewards, same-page checkouts, and frictionless payments.

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While crypto companies are slowly integrating embedded finance features like crypto-based credit cards or loans, the study offers insights into customer targeting and acquisition.

By exploring loyalty rewards and facilitating the integration of these embedded finance services using blockchain, crypto firms could improve the customer experience.

Although some of the biggest Fortune 500 companies and traditional hedge funds have jumped on the crypto bandwagon, there is still a long way to go in making crypto a daily driver for retail users. The study around embedded finance provides an opportunity for crypto companies to implement crypto-linked products with embedded finance features, taking a cue from the mainstream and offering customers a better experience.

Andrey Kunev

Reporter at CoinsPress

Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.

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