PROFIT
reduced interest rates for ethical purchasing are all tools that e-commerce platforms or retailers could deploy .”
Embrace the new-gen power of tech
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In the UK , supermarket giants Tesco and Sainsbury ’ s were retail pioneers in the finance space however Hatami believes their offers are outdated . “ Today , myriad fintechs offer agile and composable solutions like Banking As A Service ( BaaS ),” he says . “ These solutions make it easy and cost-efficient for brands to launch more innovative and inspiring embedded finance products . For example , Walmart recently launched a fintech startup with investment firm Ribbit Capital , with the ultimate goal of developing financial “ experiences ” for its employees and customers . Ikea parent Inkga , meanwhile , has recently taken a stake in BNPL firm Jifiti . Coupled with Ingka / Ikea ’ s previous investment in Ikano Bank , the company is now well placed to deliver competitive and accessible financial services to customers .”
Ensure embedded finance reflects
3 your brand ’ s values and purpose Beyond regulatory issues and cheap credit concerns , Gauhman believes that the risk for retailers relying on payment providers like Klarna is that BNPL brands are likely to be focused on goals that could be out of sync with brand-based customer needs .
“ Ethical brands might favour goals such as longer-term loyalty or a more measured attitude to consumption that embraces ESG values ,” he says . “ Take Patagonia which currently gives 10 % of its profits to small-scale environmental campaigns . It could apply a similar mindset to the way it structures any embedded finance offer to customers . Cashback , discounts or slightly
Embed finance in your
5 customer experience Whichever embedded finance option brands decide to adopt , both Hatami and Gauhman emphasise that ensuring first-rate customer experience is key . “ Ride-sharing apps like Uber and Lyft are great examples of what ‘ good ’ looks like in terms of customer experience around embedded finance ,” says Gauhman . “ These brands make paying for journeys simple and seamless , but they also offer financial services to their drivers ( eg . Lyft ' s debit card and bank account ).”
Hatami believes that the potential for embedded finance goes way beyond BNPL into areas like credit / debit cards and mortgages – perhaps even pensions . “ Travel
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