In an opening Money20/20 talk, embedded finance was estimated to be a $3.5 trillion market opportunity, especially for the retail and e-commerce industry, providing a strong opportunity to drive up revenue, customer loyalty and stickiness. We have already seen some global retailers, such as IKEA, Mercedes, Amazon and Walmart benefit from embedded finance in their business, yet many retailers are still missing out on this golden opportunity to leverage embedded finance, and not seeing the shift from it being simply a function to a competitive strategy. Embedded finance can create the ultimate experience for customers. In Daniel Marovitz’s Money20/20 talk (heading Booking.com’s fintech unit), he highlighted the importance of a payment turning from being just a transaction, into a meaningful relationship with the customer.
Call it what you want open banking or open and embedded finance, at the end of the day it is coming for the status quo, because this kind of progress cannot be tamed.