Use of embedded finance on the rise in India
Adoption of embedded finance in India is on the rise and is expected to maintain the upward trajectory in the next 12 months.
Hyderabad: A research from FIS, a financial services technology player, said Indians are willing to adopt embedded finance and explore offerings in the Metaverse.
Embedded finance is when consumers have unique, tailored financial services delivered to them at the point of need by non-financial companies. Adoption of embedded finance in India is on the rise and is expected to maintain the upward trajectory in the next 12 months. Embedded finance has potential to transform customer payment experience offered by banks and financial institutions and drive new avenues of growth for partnering merchants, said FIS.
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As the physical, digital and virtual worlds are converging, Indians are willing to explore and purchase within apps/browsers as well from the social media platforms. About 78% of those surveyed are likely to purchase fashion products such as clothing, shoes and accessories, while 70% would shop groceries within social media apps. About 63% surveyed Indians will purchase in-app/in-browser gift vouchers, 55% would buy insurance and investment products in the next 12 months.
Customers favour faster and seamless payment experiences. Apart from a hassle-free customer experience, many sought instant gratification and incentives during online purchases. The survey reflects readiness to embrace embedded financial services but brands need to ensure transparency and safety to win the trust of customers, it said.
“About 92% have concerns while making purchases within social media platforms. About 56% worry about fraudulent sellers on social media platforms and 62% worry experiencing fraudulent transactions while making in-app purchases,” the survey said.
Products and services that Indians are keen on purchasing in the Metaverse include virtual clothing/ fashion (56%), event tickets to music concerts/ sports matches (52%) and games/gaming tokens (51%).
