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Unlocking Potential through Embedded Finance: Enhancing the Retl Experience
As traditional retl channels face stagnant growth prospects CAGR of just 2 from 2023 to 2028, retlers must seize opportunities by enhancing customer engagement and exploring new revenue streams. highlights two major sectors in store-based retl - grocery and non-grocery retlers - which are leveraging embedded finance solutions to drive digital transformation across their operations.
Grocery Retlers: Fostering Engagement through Financial Integration
Given the essential role groceries play in consumers' dly routines, grocery stores have a unique opportunity to embed themselves deeply into customers' lives by integrating financial services with retl activities. Coop Genossenschaft in Switzerland is a prime example of this approach, having launched its 'Co.op Finance+' service Coop Finance Plus alongside FinTech partners such as Additiv. This comprehensive platform offers customers banking and payment solutions via the same mobile app they use for loyalty rewards through their Supercard.
By merging financial services with existing retl offerings, Coop improve customer experience, strengthen brand loyalty, and diversify revenue streams. The service includes features like cash withdrawal at no charge within Coop supermarkets, promoting more frequent store visits.
Despite a decline in bank branch networks and ATMs worldwide projected to decrease by 2 CAGR globally, 'Co.op Finance+' fills this void by providing customers with an integrated banking experience tlored to retl environments.
Non-Grocery Retlers: Optimizing the Customer Journey
For non-grocery retlers, offering multiple payment options is crucial for boosting conversion rates and enhancing customer satisfaction. Retlers should analyze payment method splits and brand shares in their target markets to understand consumer preferences.
In Germany, where debit cards and account payments hold a significant value share 75 of personal transactions in 2023, retlers must innovate by embracing new payment technologies like UPI for India's evolving market or exploring global payment leaders like Visa and PayPal to streamline integration processes across multiple markets.
A key challenge is addressing the complexity of vor search, negotiation, and contract signing - especially when scaling up operations internationally. For instance, Mejuri a US-based jewelry retler had trouble with its in-house manual systems keeping pace with rapid business expansion.
To overcome these challenges, retlers should consider forming partnerships with established financial leaders that offer global networks for integration services:
Speed-to-market: Companies like Visa and PayPal can provide fast integration processes.
Local operational support: These partners often have teams dedicated to supporting customers in specific regions.
Diverse payment options: They enable retlers to cater to local preferences while mntning a consistent brand experience.
As the retl landscape evolves, embracing embedded finance solutions promises to empower retlers with tools that enhance customer engagement, streamline operations, and unlock new growth opportunities.
To explore this topic further, refer to Embedded Finance Ecosystem: Mapping the Path to Transformation of Services Industries.
Key Takeaways
Grocery Retlers: Can integrate financial services like banking and payments into their retl apps to improve customer engagement.
Non-Grocery Retlers: Must offer diverse payment options to boost conversion rates and cater to local preferences globally.
Embedded Finance Solutions: Provide opportunities for retlers to optimize operations, enhance customer experience, and diversify revenue streams.
References
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