Financial Institutions Can Now Profit from over $1.5 Billion of Global Affiliate Spend

Companies offering in-app payments and financial services within their respective platforms are examples of applying embedded finance in non-financial services.

As embedded finance alters how businesses, both financial and non-financial, approach finance, companies are already seeing the benefits that come with it. For instance, 88% of them have reported that they are seeing an uptick in customer engagement, while 85% are witnessing an increase in new customer acquisitions. It’s estimated that by 2029, the embedded finance sector will generate $384.8 billion, a notable increase from 2020’s $22.5 billion.

By incorporating embedded finance into their service offerings, businesses will be able to uncover new opportunities for growth. The embedded finance solutions allow leaders of the financial industry - major banks, payment systems, e-wallets and others - to expand their portfolio of customers and niche products in areas and countries which were previously too expensive and risky for them to enter.

Examples of how fintech and financial companies are applying embedded finance to their services include:

• The integration of mobile banking apps with apps for food delivery or ride-sharing

• Non-financial businesses using in-app payments to create continuous customer interactions

• Retailers offering POS financing options

Addressing Unmet Financial Services Needs in a Growing Market

There's a vast affiliate marketing market with an acute need for financial services that current financial organizations are unable to adequately address. This is an ideal example of an industry where embedded finance solutions could unlock immense profit potential for financial institutions. This gap also results in publishers facing cash flow issues and a lack of credit. 

One way to start benefiting from these solutions is to engage in partnerships. In March, the international technology leader, Mitgo Group, acquired embedded finance platform Embedded in a bid to launch a new business division. The company’s expansion is aimed to help more fintech services to tap into the affiliate marketing sector, which is estimated to grow beyond $15.7 billion in spending this year. 

Embedded provides end-to-end solutions designed to equip non-financial businesses with embedded finance products to reduce payment costs, improve business processes, and enhance customer lifetime value. Embedded use cases cover businesses across various industries, such as pharmaceutical and medical, eCommerce and retail, and electronics manufacturing companies.

With this acquisition, Mitgo Group is looking to facilitate 7% of the transaction volume, which is estimated at over $1.5 billion, from the affiliate marketing sector within the next three years. The company plans to establish cooperation with the leading players of this market - global payment platforms and financial institutions. This way, fintech companies can cooperate within the affiliate marketing industry and profit from it.