Emerging payment trends credit unions should follow in 2022
Embedded finance has a projected market value of more than $138 billion, which moves it well past the fad phase: it’s the future. Also called banking-as-a-service (BaaS), embedded finance explains the use of financial services or tools by a non-financial provider. It’s designed to streamline processes for consumers and simplify them getting the services they want and need.
For example, the Starbucks app was launched in 2011 for customers to store cash and earn rewards for purchases at the popular coffee shop. Today, 25% of all Starbucks transactions in stores across the U.S. occur via the app. In fact, Starbucks holds as much cash in the mobile app and on its cards as some banks have in deposits.
While many financial institutions see embedded finance as a disruptor to current relationships, it can represent a tremendous opportunity. According to research from Plaid and Accenture, embedded finance can help your credit union:
- Build new partnerships.
- Create new revenue streams for your credit union.
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