{"id":293,"date":"2022-10-04T10:04:00","date_gmt":"2022-10-04T10:04:00","guid":{"rendered":"https:\/\/platforms.worldpay.com\/en\/?p=293"},"modified":"2025-03-26T22:29:17","modified_gmt":"2025-03-26T22:29:17","slug":"the-future-of-embedded-payments-in-australia","status":"publish","type":"post","link":"https:\/\/platforms.worldpay.com\/en\/blog\/the-future-of-embedded-payments-in-australia\/","title":{"rendered":"The future of Embedded Payments in Australia"},"content":{"rendered":"
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Embedded payments is fast gaining traction<\/a> in the local APAC market, and is quickly becoming the new frontier for elevated customer experiences and value creation within software platforms.<\/p>\n\n\n\n

With rapid uptake across both B2B and B2C software platforms, in-platform payments presents a unique opportunity for local software providers<\/a> to differentiate and expand their reach and potential. For APAC businesses wanting to expand globally, embedded payments can also be the \u2018key\u2019 to unlocking new markets and expansion. <\/p>\n\n\n\n

And with overseas markets, such as the USA, further along their embedded payments journey, Australia\u2019s integrated payments market is at an inflection point \u2013 driven by changing policy, updated compliance regulations, and the rapid growth in demand for cashless payments in the last three years.<\/p>\n\n\n\n

This article details how Australia differs from other global markets in payment facilitation and how APAC software businesses can use embedded finance for stronger revenue growth and customer retention.<\/p>\n\n\n\n

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Australia\u2019s integrated payments market is at an inflection point \u2013 driven by changing policy, updated compliance regulations, and the rapid growth in demand for cashless payments\u2026<\/h5>\n<\/div><\/div>\n\n\n\n

What is Embedded Finance and Embedded Payments?<\/h2>\n\n\n\n

Embedded finance<\/a> uses financial tools and services to make the processing\/financing of purchases and payment facilitation seamless. These tools and services form part of a wider service offering through what\u2019s known as \u201cbanking as a service\u201d (BaaS)<\/a>. <\/p>\n\n\n\n

BaaS is when nonbank businesses offer financial products and services, such as bank accounts, wallets, payments, and lending. Examples of this may include a big box retailer offering on-the-spot finance for large purchases, a pet supplies retailer offering a range of payment options, or a practice management software company<\/a> taking payments in-platform and monetising transactions<\/a>.<\/p>\n\n\n\n

Embedded payments, or Payments-as-a-Service (PaaS) are a key component of embedded finance, and forms the largest part of this rapidly growing industry. In fact, according to Lightyear Capital, payments will account for 60% of the growth of Embedded Finance by 2025.<\/p>\n\n\n\n

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The reason for the rapid growth of embedded payments can be attributed to the changes in consumer demands, evolving compliance laws, and the wide variety and evolution of viable options for integrating payments into a software platform. <\/p>\n\n\n\n

There are three options for integrating payments into a SaaS or software company<\/a>:<\/p>\n\n\n\n