New research from IDC has found that more than three-quarters of UK businesses see strategic value in embedded payments, as software and financial services providers look to payments as a way to strengthen customer relationships and create new sources of growth.
The research, commissioned by Edenred Payment Solutions, surveyed 200 senior decision-makers at UK mid-market and enterprise organisations, including businesses using embedded payments and companies providing or embedding payment capabilities into their products and platforms.
While 75% of respondents recognise the strategic potential of embedded payments, the research highlights a gap between ambition and implementation.
Only 10.8% of businesses using embedded payments and payouts say their payment experience is fully integrated, while more than half describe their integration as basic or limited.
Operational complexity remains a key challenge. Some 58.5% of businesses use four or more systems across payment processing, reconciliation and reporting, while 67% identify data transparency and payment status updates as a weakness in their payout experience.
Speed is another concern, with 56% of respondents citing the availability of funds as an issue. Only 40.5% report having a mostly or very transparent view of their payment data.
Edenred Payment Solutions said the findings point to an opportunity for software and financial services providers to differentiate themselves through the payment experience they offer, rather than simply adding payment functionality.
Rehana Mitha, managing director at Edenred Payment Solutions, said businesses need greater visibility, speed and simpler processes to realise the full value of embedded payments.
