New business models in retail from the convergence of Open Payments and Open Banking

By facilitating all players to integrate financial services into their offerings, Embedded Finance is extending the boundaries of many sectors and reshaping the relationship of corporations with their customers. The convergence of Open Payments and Open Banking actually enables new business models: digital transactions, wallets, investments are just some of the potentials of enabled services. Many companies are seizing these opportunities, particularly in the retail sector: to remain competitive in the market they must, in fact, meet the increasingly demanding expectations of users by guaranteeing an increasingly comprehensive and fluid experience.

The open platform model promoted by Fabrick represents the core element of Embedded Finance, enabling the integration of these services, while reducing implementation costs and time to market for launching new solutions, simplifying access, increasing competitiveness and therefore, raising the quality level of B2C services.

The demand for integrated services and the path towards an open economy model

Embedded Finance services are the starting point for a new type of customer journey with high added value. By integrating banking services into non-financial products, companies can gain data and information on the financial habits of their customers, which are crucial for providing them with better user experiences.

Open data is set to establish itself as an evolution of Open and Embedded Finance which, starting from the analysis of how consumer data can be used, will enable the development of new solutions, products and services across different sectors, from financial services to energy, telecommunications and health. Embedded Finance is thus paving the way for all sectors towards an open economy model.

The Embedded Finance evolution and Fabrick

Embedded Finance has quickly established itself and is estimated to generate revenues of over $290 billion globally, with a CAGR of 16.5% between 2023 and 2033.¹

It was 2018 when Fabrick, a pioneer of Open Finance, presented at Money20/20 its open platform project that would revolutionise the financial world, even anticipating the launch of the European PSD2 regulation. A project that today is an internationally established reality that combines advanced Open Banking and Open Payment services, and allows for the evolution towards the Open and Embedded Finance paradigm.

Fabrick's Embedded Finance solutions reflect this evolution and provide financial and non-financial players with the possibility of co-creating added value, thanks to the platform's ability to aggregate and integrate data from different sources and players in the sector.

One example is Payment Orchestra™, an orchestrator of global payment gateways and acquirers, which enables optimisation of the collection infrastructure by orchestrating different payment solutions in a single platform.