In 2008, Apple introduced the App Store and quietly created an entirely new business model. The iPhone was already a runaway success but opening it up to third-party applications turned the product into a platform with a growing ecosystem of services that could be integrated into what consumers already use every day.
The same lesson applies to business today. Digital payments have been focused on enabling merchants to accept cards online, but this is a challenge that has largely been solved. So the opportunity now lies in maximizing what can happen when a payment is made – whether it’s delivering additional value or enhancing convenience – with the goal of adding new functionality and strengthening relationships with customers.
Embedded finance has been around for years so the concept isn’t particularly new, but the debate continues as technology and expectations evolve. What was once a strategic ideal is now becoming a reality.
Today’s customers simply expect their payment to work which raises the bar for merchants – which is why checkout is undoubtedly so important. Payment flows that refer customers to external banking pages or require manual steps are outdated, with studies showing that nearly 70% of online shopping carts are abandoned before purchase, mainly because checkout is slow, confusing, or has hidden costs.
Speed and simplicity are expected, and payment options are key. A recent survey found that 77% of UK shoppers expect payments to be completed almost instantly, and 58% want a one-click checkout – otherwise they will abandon their cart. Credit cards, digital wallets, account-to-account transfers and pay-as-you-go purchases are all vying for attention, with another study reporting that 75% of consumers say that having their preferred payment method turns a “wanting” customer into a paying customer. Therefore, payment acceptance is not a differentiator but the foundation on which the business experience is built.
Embedded payments may have solved the problem of acceptance, but the next challenge soon became clear – customers can pay but that doesn’t always mean they can make a purchase, especially for big-ticket items.
Credit integration or buy now, pay later options are shown directly in the purchase flow to increase conversion rates and increase average order values. Many reports note that offering embedded financing at the point of sale leads to higher basket sizes and lower cart abandonment. A product that may have felt out of reach as a single payment can be managed when broken down into smaller installments but what is important is to do it responsibly.
BNPL has grown rapidly in the UK from practically zero in 2017 to £13bn by 2024 – but this growth has understandably led to regulatory scrutiny. New FCA rules, expected to come into effect in July 2026, will require clear pre-conditions and eligibility checks on all deferred payment credit.
Embedded finance is supposed to work like traditional banking: offering flexible payment plans and transparent costs, without encouraging customers to take on worthless debt. When implemented correctly and responsibly, customers should be flexible while merchants can convert more sales.
Not every initiative is about helping customers spend more in one transaction, what matters is building long-term relationships and repeat purchases. Subscription models are now embedded in consumer habits, we are now able to sign up for everything from media streaming services to gym memberships to coffee delivery on a recurring basis. They have become an easy way for customers to get products and services but are a popular business model for a reason – loyal customers are more valuable. Analysts note that subscription-based models improve customer loyalty and predictable revenue.
Incorporating subscription management directly into apps or websites makes it easy to maintain these modules. Customers can sign up quickly, store their payment details securely and manage their plans through the same interface they used to shop. Convenience plays a strong role here. When billing and account management are integrated into an app or website, customers rarely need to think about payment mechanics.
Regulators are keeping a close eye here too, with new rules in the UK requiring consumers to be able to cancel subscriptions as easily as they’ve started. Therefore, the most sustainable subscription businesses will be those that keep customers because they get value from it, not because it’s too hard to leave. These new rules are a positive move, ensuring that relationships are protected by choice.
Global e-commerce has become much easier for merchants but the checkout experience doesn’t always keep pace. Research shows that almost all global consumers expect to pay with their own money (94% in one study) and prefer payment methods they know or are familiar with. Yet many are faced with foreign currency and exchange at checkout, often with uncertain exchange rates and additional fees. What often results is a loss of confidence and abandoned carts.
Currency conversion and placing multi-currency rates directly at checkout removes this hurdle. Buyers can feel less risky and more familiar with clear local prices and transparent exchange rates. As one global report notes, “57% of consumers choose where to shop based on available payment methods,” and virtually all expect to display the local currency. Merchants can effectively treat an international store as if it were locally created by placing currency instruments as part of the checkout.
For most of the past decade, the fintech industry has been defined by rapid experimentation. New startups launched payment models, lending services and digital wallets with remarkable speed. Today the environment looks different. Venture funding has slowed, falling 42% in 2023, and regulators such as the FCA and CMA are paying closer attention to consumer protection and market stability.
This shift is pushing the industry toward a more sustainable innovation—we’re optimizing how existing services fit into everyday experiences rather than creating entirely new products. The companies that win won’t be the ones that come up with the best new payment tricks that force customers to adopt new systems, but those that add useful capabilities to things where transactions already happen.
By embedding value, whether it’s financing, loyalty programs, real-time FX, or data-driven personalization, merchants can enrich and simplify the checkout experience, merchants can deepen loyalty, reduce friction, and strengthen long-term customer relationships. Every payment touchpoint is an opportunity for more value.
Scott Dawson, CEO DECTA UK
“From Transaction to Experience: Embedding Value at Checkout” was originally developed and published by Electronic Payments Global, a brand owned by Global Data.
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