On an e-commerce site, after selecting the product, the payment is to be made — it should be just a click. It should be easy for the customer to pay. This happens on account of embedded finance. It is the link that connects the customer and organisation. The payment should be made without leaving an app or a site.

Mostly the payments are for a selected product or service. However, there could be payment for an unrelated product, which is available on the same site. Suppose a customer buys a TV and then buys insurance for TV. Here he is dealing with two different organisations, but is clearing on the same platform or application.

In this decade, the embedded finance industry is growing. It is expected to reach $22 billion by 2029.

Embedded insurance has emerged as a distribution innovation for insurers. There is a huge demand for this in travel industry. MakeMyTrip and Amazon have developed contextual insurance products, along with their core products.

Travel companies such as IRCTC and mobility firms such as Old too have embedded financial products.

Oracle works tech layers of embedded finance firms. Their complete stack is available on cloud. The packages cloud app, cloud infrastructure and Oracle database are seamlessly integrated. It is necessary to go near the customer rather than expecting the customer to come to the financial institution. Embedded finance must enhance the customer’s user experience. Companies integrate the bank’s ERP system with the customers.

Embedded finance makes a non-banking consumer company more efficient. In fact, a non-banking company turns a fintech because of embedded finance. The digital era essentially calls for embedded finance.

The banks and financial institutions are exposed to an altogether new set of clients. Embedded finance enhances the capabilities of a general merchandise company by incorporating finance into its platform. In addition, the customer base is widened.