What is embedded payment ?
Embedded payment refers to the integration of payment capabilities directly into a website, application, platform, or software. This allows users to complete transactions seamlessly within their existing workflow, without adding unnecessary steps or switching environments.
Payment thus becomes a feature integrated into the service offered by the company. It can take place at the time of an order, when settling an invoice, or when signing up for a subscription.
This approach is also referred to as “embedded payments.” It falls within the broader scope of embedded finance, which involves integrating financial services directly into products or services that are not necessarily financial in nature.
Embedded payment applies in particular to :
- e-commerce sites,
- marketplaces,
- B2B platforms,
- SaaS software,
- mobile applications,
- customer portals,
- industry-specific solutions.
How does embedded payment work ?
Embedded payment relies on the connection between the business environment and a payment infrastructure. This integration makes it possible to initiate and track transactions directly from the customer’s journey.
Integrating payment into the customer journey
The company begins by determining when the payment should take place. It can be integrated after an order, upon invoice validation, at the time of subscribing to a service, or directly from a customer portal.
The goal is to offer the payment method at the moment the user needs it, without creating interruptions in their journey.
The role of payment APIs
APIs play a central role in embedded payments. They enable the connection of features offered by the payment provider to a company’s website, application, or software.
The company can thus create a journey tailored to its business while leveraging specialized infrastructure to process transactions.
APIs can also enable the automation of various payment-related operations: transaction confirmation, refunds, status tracking, beneficiary management, or flow reconciliation.
Transaction processing
When the customer initiates the payment, the necessary information is transmitted to the payment infrastructure. The transaction is then processed according to the chosen payment method.
Once the operation is complete, its status can be automatically transmitted to the company’s system. The order, invoice, or customer account can then be updated without manual intervention.
Why integrate payment directly into the customer journey ?
Each additional step can complicate the checkout process. Embedded payment therefore seeks to bring the act of payment closer to the action performed by the user.
For a B2B client, for example, an invoice available in their personal area can be accompanied directly by payment options. On a marketplace, payment can be integrated into the ordering process. In SaaS software, payment collection features can be accessed without leaving the tool.
This integration enables, among other things, the following :
- reduce breaks in the customer journey,
- limit the number of steps,
- to offer a consistent experience,
- to facilitate bill payments,
- accelerate cash collection,
- automate transaction processing,
- centralize payment information.
Payment is thus no longer treated as an isolated step. It becomes a component of the journey offered by the company.
What are the use cases for embedded payments ?
Embedded payment can meet various needs, depending on the company’s business model and the services it offers.
Integrating payments into SaaS software
A SaaS provider can integrate payment features directly into its software. Users can then perform certain financial transactions without using a separate tool.
Depending on the service offered, the software can enable processing customer payments, tracking transactions, or even automating certain payment-related operations.
Integration enables the provider to enrich its offering while retaining control over the experience delivered to its users.
Managing marketplace payments
On a marketplace, payment involves several parties: the buyer, the platform, and the sellers or service providers.
Embedded payment makes it possible to link the collection of funds to other stages of the customer journey. The platform can thus manage transactions, commissions, and the disbursement of funds to various beneficiaries within a single infrastructure.
Facilitate B2B invoice settlement
A B2B platform can integrate payment directly into the customer portal. When an invoice becomes available, the customer can immediately access the available payment options to settle the bill.
The company thus reduces the time between invoice issuance and payment. Transaction details can also be automatically transmitted to financial tools to facilitate the tracking of incoming payments.
Integrate payment into an application
Embedded payment enables applications to offer a transaction directly within their user journey.
This allows the user to purchase a product, book a service, or pay for a service without having to navigate multiple interfaces. The company maintains a more consistent experience between using the service and paying for it.
Manage subscriptions and recurring payments
Companies operating on a subscription model can also integrate payments into their customer journey.
The payment method can be securely stored notably through tokenization to facilitate future transactions. Subsequent payments can then be managed in accordance with the terms of the service.
Which payment methods can be integrated ?
An embedded payment solution must make it possible to offer payment methods tailored to the customer profile and the transaction context.
The bank card
Bank cards remain suitable for many online customer journeys. They can be integrated into a payment page or form directly connected to the company’s environment.
Bank transfer
Bank transfers are widely used in B2B relationships, particularly for settling large amounts. Integrating them into the process also facilitates transaction tracking and identification.
Pay by Bank
Pay by Bank allows the customer to make a payment directly from their bank account. It can be integrated into the payment journey to offer an alternative to card payments.
The choice, therefore, does not necessarily involve favoring a single payment method. A company can offer several options depending on the amount, the customer, or the type of transaction.
SEPA Direct Debit
SEPA Direct Debit is particularly well-suited for recurring payments or regular business relationships. Once the mandate is set up, collections can be initiated according to the scheduled due dates.
What are the benefits of embedded payments for the customer experience ?
One of the key benefits of embedded payment lies in the continuity of the customer journey. Customers can make a payment the moment they wish to complete their action, all within the environment they are already using.
Reduce friction at checkout
Having multiple redirects, interfaces, or data entry steps can complicate the transaction. By integrating payment into the customer journey, the company reduces the actions required to finalize the payment.
The customer thus benefits from a more direct path between selecting a product or service and making the payment.
Personalize the checkout experience
Embedded payment also makes it possible to tailor the experience to the context. In particular, the payment methods displayed can depend on the type of customer, the amount, or the characteristics of the transaction.
A B2B company might, for instance, prioritize bank transfers or SEPA direct debits, whereas an e-commerce site might place greater emphasis on bank cards or digital wallets.
Simplify post-payment tracking
Integration does not stop at the transaction. The payment status can be transmitted to the company’s tools to automatically update an order, an invoice, or a customer account.
The process thus becomes smoother for both the customer and the teams responsible for managing payments.
How do you integrate an embedded payment solution ?
Implementing embedded payments requires considering the entire customer journey before selecting technical features.
Define the payment journey
The company must identify the point at which payment takes place and the actions expected of the user. The goal is to create a journey that is simple and consistent with the service offered.
Select payment methods
The proposed methods must align with customer habits, the amounts collected, and the company’s business model.
A subscription model, a marketplace, and a B2B invoicing platform will not necessarily have the same needs.
Integrate the solution via API
APIs then make it possible to connect the payment infrastructure to the company’s various systems.
Integration can involve the website or application, but also the ERP, CRM, invoicing software, or other business tools.
Automate operations
The value of embedded payment also lies in its ability to connect payment to internal processes.
The company can automate certain operations, such as:
- transaction confirmation,
- updating the status of an invoice,
- the reconciliation of payments,
- refunds,
- remittances,
- financial reporting.
How do you choose an embedded payment solution ?
An embedded payment solution must be flexible enough to integrate with the company’s existing environment and evolve with its business.
API quality is a key initial criterion. They must enable the connection of necessary functionalities while allowing the company sufficient flexibility to build its own journey.
It is also important to evaluate:
- the available payment methods,
- customization options,
- transaction security,
- the regulatory status of the service provider,
- management of payment accounts,
- the ability to automate workflows,
- managing multiple beneficiaries,
- reporting features,
- transaction traceability,
- the ability to handle increasing volumes.
The choice must therefore take into account both the user experience and the company’s technical, operational, and regulatory needs.
How does CentralPay enable the integration of payments into the customer journey ?
CentralPay enables businesses to integrate payment features directly into their websites, platforms, applications, and business software. Thanks to its APIs, companies can build payment journeys tailored to their operations and connect payments to their various systems.
The platform enables the centralization of multiple payment methods. Transactions can thus be integrated into the company’s various payment collection workflows.
CentralPay also enables payments to be linked to associated operations. Transaction tracking, payment account management, workflow automation, and fund disbursement can all be integrated into the platform’s operations.
As an electronic money institution authorized by the ACPR, CentralPay combines technological infrastructure with a regulated environment. Businesses can integrate payments into their customer journey while leveraging a solution designed to secure, automate, and manage their financial flows.
