OpenPayd: European brand to generate €626bn by 2028

Some 85% of European brands say offering embedded payments will help reduce the number of touchpoints to payment, while 82% agree it gives customers greater flexibility to make purchases using mobile wallet or current account options
Banking and payments fintech OpenPayd expects European brands to generate €626bn by 2028 thanks to embedded payments solutions

Banking and payments ecosystem provider OpenPayd reveals that European brands are expecting to generate €626bn (US$661bn) in revenue by 2028, thanks to the implementation of embedded payments and banking solutions. 

Expectations for a rise in revenue may come as a surprise with the retail market faltering in recent years. Still, OpenPayd’s data suggests implementing advanced payment options will serve to improve incomes for brands dramatically. 

UK brands in particular are expected to profit from embedded payment options, taking 49% of the market share.

Embedded finance: A key revenue driver

Per the report, a more conservative approach to embedded finance implementation is anticipated to support profitability over growth, with 74% of European businesses planning to integrate new embedded finance solutions. 64% want to introduce such a payment option within the next two years. 

Currently, it’s anticipated that only 9% of European brands offer embedded finance at any point of sale, with this set to change significantly in the coming years. 

Around 29% of those surveyed are already in the process of implementing embedded payment, while 57% have expanded their current offering before looking to offer embedded options later on. 

Some 85% of European brands say offering embedded payments will help reduce the number of touchpoints to payment, while 82% agree it gives customers greater flexibility to make purchases using mobile wallet or current account options. 

Embedded payments: An opportunity for BaaS providers?

Notably, some 69% of businesses that already offer embedded payments do so through partnerships with banking-as-a-service (BaaS) providers.

And 87% of those looking to integrate embedded payments plan to partner with a BaaS provider to achieve it. 

This could, therefore, herald a period of significant growth for BaaS providers, as more European brands and retailers turn to them for embedded financial services. 

According to OpenPayd, BaaS providers with the greatest likelihood of striking a deal with European companies are the ones with the fastest implementation speeds, according to 40% of surveyed brands.

Another 22% of companies say reputation is important when partnering with a BaaS provider, while 14% say BaaS providers that offer the greatest user experience are the most favourable option. 

Speaking on the findings, OpenPayd CEO, Iana Dimitrova, says: “Over the last two years, the hype around embedded finance has been replaced by a hard-nosed reassessment of where and how embedded finance can bring value. 

“We’re clearly seeing businesses refocus on the potential to strengthen the customer experience, deepen their customer relationships and open up new revenue streams.

“We are already seeing a set of behaviours that are setting the leaders in embedded finance apart from the rest: They are partnering with infrastructure providers, being pragmatic about the scope of a project and staying laser-focused on the customer. 

“Those attributes will be key to unlocking the potential of embedded finance.”


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