PriyaPatelTLDR:
- Embedded finance is transforming smaller businesses’ competitive dynamics.
- Technology has made it easier for companies to set up online storefronts and offer payment options that turn browsers into buyers.
In a recent interview, Ed O’Donnell, CEO of Versatile Credit, highlighted how embedded finance is reshaping the competitive landscape for smaller businesses. The use of technology has leveled the playing field for small and medium-sized enterprises, allowing them to operate more efficiently and provide a seamless consumer experience across channels.
By integrating technology into their processes, businesses can create online experiences that rival larger competitors and attract customers. O’Donnell stressed the importance of offering embedded payment and lending options to convert browsing customers into buyers. This approach streamlines the purchasing process and removes the need for extensive salesperson knowledge about financing.
For small businesses, partnering with the right technology providers is crucial for scaling opportunities and staying competitive in the long run. Versatile Credit, for example, offers a platform model that connects lenders with companies, enabling them to provide a range of credit products to customers regardless of their credit score.
One industry that has seen significant changes due to embedded finance is the home improvement sector. With rising mortgage rates deterring homebuyers, more people are choosing to renovate their current homes rather than move. By offering installment financing options, merchants can make expensive projects more accessible to consumers and build long-term relationships based on credit.
Overall, embedded finance is not only transforming how businesses operate but also how consumers approach purchases. By embracing technology and offering flexible payment options, smaller firms can gain a competitive advantage in the market and attract and retain customers in the long term.
