The rapid evolution of fintech is transforming industries by making financial services more accessible, user-friendly, and tailored to consumer needs. This wave of innovation is now extending beyond traditional finance, giving eCommerce platforms the opportunity to integrate fintech solutions that not only enhance customer experience, but improve revenue and streamline operations, unlocking significant cost savings.
Mangopay reveals five fintech experiences that businesses can embed to capitalise on this trend and position themselves at the forefront of digital commerce.
1. In-App/Platform Wallets
In-app wallets are reshaping customer engagement by creating a closed-loop ecosystem within eCommerce platforms. These wallets allow users to store cashback and in-app currencies, fostering repeat purchases and building long-term loyalty. They also provide a fast and cost-effective payment method, helping platforms reduce payment processing costs by over 15 per cent. This integration not only enhances the user experience but also drives higher customer lifetime value.
2. Wallet Infrastructure or WaaS (Wallet-as-a-Service)
Wallet-as-a-Service (WaaS) solutions can help eCommerce platforms offer digital wallets without navigating the complexities of financial licences. WaaS providers with Electronic Money Institution (EMI) licences offer secure and streamlined infrastructure for managing funds. By leveraging API-based integration, platforms can introduce digital wallets, while remaining in control of the UX (User Experience) and automation behind money movements.
3. Banking-as-a-Service (BaaS)
Banking-as-a-Service (BaaS) offers eCommerce platforms the ability to embed comprehensive banking services such as account creation, financing options, and more. Through API integration, platforms can fully customise the user experience, providing a range of financial services directly within their ecosystem. While BaaS demands a larger investment in development compared to wallet infrastructure, it enables platforms to deliver a fully tailored and scalable banking experience, and is suited to businesses looking to offer more sophisticated payment services. Functionality such as financing can offer significant benefits including growth in platform activity.
4. Issuing Account Details for Sellers
Enhancing the overall experience for sellers, service providers, contractors, or freelancers is crucial for building loyalty and reducing churn. By offering dedicated account details, eCommerce platforms can empower sellers to take control over their earnings, allowing flexible withdrawals and currency conversions. This not only improves seller satisfaction and retention but also streamlines payment processes, reducing operational costs and increasing efficiency. Automating these processes enables platforms to focus on growth and innovation.
5. FX or Currency Management
Effective currency management is essential for global eCommerce platforms. API-first FX solutions enable businesses to remove currency risk and avoid hidden fees associated with traditional currency conversions. By offering transparent pricing and localised payouts, platforms can attract a broader user base while capturing additional revenue streams. Embedding cost-effective currency conversion tools ensures that platforms can protect their margins and provide competitive financial services to both buyers and sellers.
Kent Henderson, VP, product management at Mangopay, comments: “In today’s digital economy, integrated financial services are becoming a key differentiator for businesses. This trend is not just a passing phase – it’s the future of business. As demand for embedded experiences grows, eCommerce businesses have the opportunity to build a fintech-enabled future which not only improves their customer experience but also unlocks new revenue streams and achieves significant cost savings.”
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