Increasing conversion and loyalty is the ‘North Star’ for any retailer. The path to achieving that requires an exceptional customer experience, with a seamless customer journey at the centre. Increasingly, brands are turning to BaaS-powered embedded banking as the answer.
The appetite for embedded banking is shaping what consumers expect from the brands they visit everyday, and this gives an opportunity for companies to not only create value, but cultivate a longer term relationship with their best customers.
Here’s what you need to know…
How embedded finance is shaping loyalty
Today’s consumers, particularly millennials and Gen Z, are demanding more than just easy transactions. They expect choice, convenience, and control over how they manage their finances. Embedded financial products like BNPL have become crucial for increasing conversion, enhancing customer loyalty and driving repeat business.
Our research proves this point:
- 52% of 25-34-year-olds find accessing financial products through their favourite brands more convenient than using traditional banks.
- 40% of consumers said they would remain loyal only to brands offering embedded financial products like BNPL.
- 36% of consumers stated that embedded finance solutions increased their engagement with brands, returning to the site or app multiple times a month.
PYMNTS research, meanwhile, underlines that BNPL is now non-negotiable for many shoppers. It found that in the US, 28% of younger consumers would abandon their purchase if BNPL was not available, while 25% would opt for cheaper alternatives.
For retailers, this means that offering embedded finance solutions at checkout is not just about providing convenience — it’s about fostering long-term loyalty and increasing conversion.
Why BaaS is the kingmaker for customer experience
Customer expectations are now evolving rapidly, and brands will need to be agile and flexible to meet them. This means constantly improving the customer experience, and with the right BaaS partner, embedded banking can enable this.
If the provider has the right licence, BaaS allows businesses to integrate a wide range of financial services—accounts, credit products, instant payments and more — directly into the customer journey at the point of need. This gives customers more options, enhancing their experience while keeping them within the brand’s ecosystem.
For retailers, this means more than just convenience. It drives measurable outcomes like higher average order value (AOV) and average order frequency (AOF). With embedded financial products seamlessly integrated into the checkout process, brands can offer a smoother, more compelling shopping experience that keeps customers coming back.
Ultimately, when customers want a product, embedded banking solutions make it easy for them to get it in the way that fits their needs. They want a pair of jeans, not BNPL; they want a car, not a loan. Embedded finance is about addressing customers’ needs directly and offering a smooth, hassle-free experience from beginning to end.
The race is on
In the race to improve customer experience, BaaS is the kingmaker. With BaaS, businesses can transform the customer experience. Offering more than just a product—they offer an experience tailored to each customer’s needs.
By embedding financial solutions into their offerings, brands can drive loyalty, boost sales, and stay competitive in an increasingly crowded market. As customer expectations continue to evolve, BaaS will be a critical tool in helping businesses meet those demands and maintain a competitive edge.
Get in touch with Vodeno today to learn about our BaaS-powered embedded finance solutions, including BNPL, and how they could transform your business.
