The software publishing industry is upgrading its embedded finance ecosystem as key players in the sector seek to deliver deeper customer engagement and monetize new revenue streams. Across payment facilitators (PayFacs), independent software vendors (ISVs) and marketplaces alike, innovations such as digital wallets and short-term lending products are becoming increasingly standard. This transition will shape the future of eCommerce more widely.
In collaboration with Carat from Fiserv, PYMNTS Intelligence’s latest study shows that 71% of software industry PayFacs offer digital wallets and are highly interested in enhancing these capabilities — a notably higher rate than observed among ISVs and marketplaces in the sector. The research also shows that 70% of marketplaces are interested in enhancing or introducing short-term merchant credit offerings, providing their business customers with new options for cash flow management.
Inside the report:
- 50%: Portion of marketplaces offering merchant lending solutions to the software industry that want to innovate further
- 25%: Share of marketplaces saying the biggest barrier to innovation is complex internal decision-making processes
- 26%: Portion of ISVs citing system integration as their top obstacle to innovation
These are just some of the findings detailed in The Embedded Finance Ecosystem: Software Publishing report. This edition examines the evolving role of embedded finance in the software producers and publishers segment and draws on insights from a survey of 282 PayFacs, ISVs and marketplaces executives.
To learn how Embedded Payments from Carat can help your business modernize money movement and turn payments from cost centers to revenue drivers, contact a Carat expert today.
