Here’s why crypto companies need to focus on embedded finance

new study Decta emphasized the importance of embedded financial capabilities in today’s fintech world. As online shopping and digital payments become the norm, the study points to several key factors that enable a seamless customer experience.

Embedded Finance is a new breed of software distribution that works with financial infrastructure providers to embed financial services into their existing ecosystem of products. The most common embedded financial services include banking, lending, insurance, payments, and branded credit cards.

According to this research, prompt payment and availability of your chosen payment option are the most important factors for a satisfying online purchasing experience. Lack of preferred payment options and friction in the checkout process are the main reasons for poor shopping experience, with nearly 49% of respondents likely to stop shopping if they encounter these issues. said it would.

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Personalized offers have become one of the key features of embedded finance. This can be assessed and enhanced by focusing on different demographics. For example, 54% of Americans preferred integrated add-ons such as lending and insurance. Generation X participants were most satisfied with personal offers, while Generation Z and Baby Boomer participants offered lower rated offers.

Loyalty rewards, smooth payouts, and same-page checkout are other preferred built-in features approved by respondents.

As crypto companies slowly integrate embedded financial capabilities such as cryptocurrency-based credit cards and loans, this study provides insight into customer targeting and acquisition. Crypto companies are looking at loyalty rewards and helping mainstream companies use blockchain to embed these embedded financial services.

The cryptocurrency ecosystem saw an influx of institutional investors during the last bull market. Some of the largest Fortune 500 companies and traditional hedge funds have jumped on the crypto bandwagon, providing a glimpse of mainstream crypto adoption.

However, there is still a long way to go before the primary focus is on making cryptocurrencies an everyday driver for retail users. Research on embedded finance could help crypto companies take cues from the mainstream and implement it in their crypto-linked products to provide a better customer experience.