Logistics and wholesale trade shows strong demand for embedded financial innovation. For example, most payment facilitators (PayFac), independent software vendors (ISVs), and marketplaces are very or very interested in digital wallet innovation.
Many companies in this space prioritize operational improvements, such as faster transaction processing, over innovation in other areas. 50% of PayFacs and 36% of marketplaces surveyed ranked operational enhancements as their top innovation.
These are just some of the insights considered in “.Embedded Financial Ecosystem: Logistics and Wholesale Edition,” PYMNTS Intelligence and fiserv carat collaboration. This report examines the growing importance of embedded finance in the logistics and wholesale sector. This is based on insights from a survey of 282 executives working at PayFac, ISVs, and marketplaces conducted from May 10, 2023 to August 25, 2023.
Other findings from the study include:
The sector has shown widespread interest in embedded financial innovation.
The logistics and wholesale industry is seeing high demand for embedded financial innovation. 83% of PayFac, 80% of marketplaces and 64% of ISVs in this space have shown strong interest in digital wallet innovation. A significant share already offers digital wallets, and many have a strong interest in enhancing these further.
Another built-in financial innovation that these companies like to offer is flexible installment plans. Two of his three PayFac companies have yet to introduce installment plans. However, half of this subset expresses strong interest in offering these plans. 70% of marketplaces do not have this option, but 37% have expressed a strong interest in offering this option.
Companies in this sector face many hurdles to innovation.
PayFac, ISVs, and marketplaces serving the logistics and trade sector want to invest in embedded financial solutions, but face challenges. Roughly two-thirds of ISVs and marketplaces say economic conditions are a bigger barrier than market factors or workforce issues. Meanwhile, half of PayFac say workforce issues are their biggest challenge.
As the logistics and wholesale sectors focus on optimizing embedded financial solutions, demand for innovative features such as digital wallets, installment payments, and BNPL options is surging.Download the report to learn more about why you need embedded finance innovation It is the key to operational efficiency and customer satisfaction.
