61% of Firms Put Payroll Benefits Next in the Embedded Finance Queue
Embedded finance appears to have crossed a revealing threshold: Companies are treating its growing pains as reasons to improve the technology rather than abandon it. The PYMNTS Intelligence report “Embedded Finance as a Strategic Initiative” found in October that 93% of companies encounter friction with the financial tools built into their customer or employee platforms. […] The post 61% of Firms…
A recent PYMNTS Intelligence report reveals that 61% of companies plan to add payroll benefits as embedded finance features in the near future. Despite encountering friction in existing embedded finance tools, 93% of companies surveyed remain highly satisfied with these capabilities. Companies cite stronger customer and employee relationships (45%), improved user experience (38%), and brand differentiation (35%) as the primary reasons for adopting embedded finance, underscoring its potential for revenue generation and loyalty building.
However, technical integration (40%), compliance and security (39%), and strategic alignment and ROI (38%) remain significant challenges. The survey of 515 senior leaders in the U.S. found that 69% of companies use at least one third-party provider, while 61% plan to add payroll benefits, which is a top priority for those without current offerings.
Partnerships and technology customization are key considerations, with 88% of respondents prioritizing trust and alignment with business goals. Overall, the report suggests that embedded finance is evolving from a nascent technology into a mature market, with companies investing in better technology and stronger partners to enhance customer experiences and drive financial results.
Written by urgent.news from PYMNTS's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
