Embedded Payments have grown in popularity, and for good reason. A payments solution built into the back end of the platform experience has proven to be a significant driver of better user engagement, growth potential, and competitive advantage for software companies interested in becoming a must-have business management solution for their user base.
Last year, we sat down with several of the payments experts that roam the halls of Worldpay to understand what was on the horizon for software platforms and payments. From those conversations, we made Embedded Payments predictions for 2024. With a few weeks left on the 2024 fiscal calendar, we turned to Michael Veatch, Senior Director of Implementations and Ella Aguirre, Director of Solutions Consulting for their insights on what happened in Embedded Payments this year and what’s on the horizon for platform providers in 2025.
Prediction #1: Strategic partnerships and mobile-first experiences will be key initiatives for software companies.
Establishing partnerships — particularly with Embedded Payments solution providers — will be key to filling gaps and removing friction, to create a more complete solution ecosystem and advance the value of software companies. Those partners should enable omnichannel capabilities that connect a broad range of payment acceptance devices to different sales channels and deliver on preferred payment methods that meet evolving customer demands, including digital wallets like Apple Pay and Google Pay.
Assessment: Over the course of the year, Michael has seen this prediction play out firsthand. It’s clear that software companies have been digging into payments in 2024 to maximize the opportunity to advance the value of their offerings. “What I’ve seen a lot this year is the natural maturity of our partners has started to really increase. Rather than spending a lot of time having to educate and consult on the payments basics and benefits, partners are coming in with a well-rounded understanding of payments and asking questions that challenge us and how the landscape is designed today.” Ella agrees and adds that “there seems to be a renewed focus on how to modernize card present acceptance and provide that omnichannel experience across multiple payment channels. We’ve seen an increase in software partners asking for robust contactless payments, including tap to pay. There’s been a shift from these more traditional, legacy devices to accepting contactless payments on a mobile phone or tablet.”
Prediction #2: Payments fraud is increasing, there will be a continued focus on support and services to help software companies mitigate threats.
It will be important for software companies to look for Embedded Payments partners who can implement effective fraud monitoring and security technology, protocols, and ongoing support to ensure data is secure and ongoing PCI compliance is maintained.
Assessment: 2024 was a year of focus on product enhancements to support fraud detection, prevention, mitigation, and PCI compliance. Michael and Ella confirm this insight and remind software companies to use their Embedded Payments partner to provide feedback and guidance in the changing regulatory and compliance landscape. “At Worldpay, we’ve got a lot of smart and intelligent people who can help guide and tailor these conversations about risk and compliance. It’s what we’re here to do, so leverage us,” said Michael. With that said, we encourage software companies who have yet to think about PCI 4.0 compliance to let this be your reminder to do so.
Prediction #3: Software companies will lean into the possibilities of data.
Software companies with an Embedded Payments strategy will likely have access to sophisticated data that enables them to refine their offerings, more effectively address needs within their user base, and prevent issues related to payment fraud.
Assessment: Ella endorses this prediction with the real-time use cases she’s seen this year as Worldpay for Platform’s Director of Global Platform Solution Consulting. She encourages software companies to continue to use data and lean on strategic partnerships who have payments expertise. This continued focus will enable software companies to build an optimal plan for 2025. “Getting back to the core of using data and understanding what’s important for your customers was, is, and will continue to be super important for software companies,” she said.
Prediction #4: Customer experience is a key differentiator of and focus for the top software providers.
Software companies that invest in true payments partnerships can expect an elevated experience that goes well beyond simply handing off payments to a payments vendor. The right partner will offer ongoing support and guidance throughout their Embedded Payments journey. Software companies will also have greater control of the payment experience and in turn, opportunities to create a more simplified, streamlined, on-brand, and ideal customer experience that leads to better acquisition and retention outcomes.
Assessment: In 2024 we predicted that payments partners would play a significant role in helping software companies enhance experiences for their user base. Ella confirms this insight by sharing her experience consulting with dozens of software companies this year that were looking for eCommerce, online payments, and the desire for a seamless embedded experience, as well as a modern, all-in-one device or tap-to-pay solution “to create a best-in-class experience no matter the payment type.”
Retrospective from Embedded Payments predictions made in 2024
Overall, we’re pleased with our predictions and how the industry shook out this year and looking forward to what’s ahead for software companies in 2025. We’re seeing huge growth around and renewed focus on vertical-specific software adoption, AI and machine learning, Embedded Finance solutions, and user experiences. 2025 is positioned to be a year of significant opportunity for software-led payments and platforms. Ella encourages software companies “to not get distracted by new shiny things. 2025 should be a year of focus, data, and understanding what’s truly important to your customer base.”
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Learn what to look for in an Embedded Payments partner.
