Scott Dawson, CEO at DECTA UK
The iPhone was already a hit by 2008 but it was when Apple launched the App Store that it became indispensable. By opening the door to embedded services, the company transformed a single-purpose device into a platform that users already carried around with them and enabling them to choose the functionalities that it was able to perform.
That same principle is shifting payments today – simply accepting cards is no longer sufficient. Merchants are expected to integrate extra services like credit, subscriptions or currency tools directly into the checkout experience. Payments aren’t the final step in the transaction process, they are a moment to add value, remove friction, and strengthen customer relationships.
Embedded finance isn’t a new, emerging concept but it is one that is coming to its own. Expectations have moved on, from both merchants looking to grow and from consumers who have grown accustomed to convenient, seamless experiences.
Seamless payments and modern commerce
A smooth checkout experience is a baseline in commerce, as clunky redirects, slow processing and unexpected costs are no longer tolerated. Cart abandonment therefore remains a persistent challenge, with close to 70% of online baskets left incomplete.
Shoppers have made it clear, they want speed, simplicity and choice with one click checkouts, instant confirmation and access to their preferred payment methods. Whether that includes cards, digital wallets, bank transfers or buy now, pay later options, the expectation is that everything works together in a unified and intuitive way. Merchants must look at this as a fundamental requirement – failure to meet these needs can mean failure to convert sales and, ultimately, failure to grow.
Integrated financial experiences
Once acceptance is solved, the next step is embedding financing. For many purchases, particularly higher values ones, the barrier is not whether a payment can be proceeded but affordability. Providing financing options like buy now pay later into checkout allows customers to spread costs in a way that suits their circumstances, while supporting merchants to boost both average order value and conversion rates.
However, this demands careful handling. In the UK, regulators stepped in as the BNPL market boomed – growing from virtually zero in 2017 to over £13 billion by 2024. From July 2026, new FCA rules will require clear upfront terms and affordability checks on all deferred-payment credit.
This signals an important shift – embedded finance must operate with the same level of responsibility expected of traditional lending with transparency, fairness, and customer understanding being critical. When it’s done right, embedded financing becomes a practical tool that supports both the merchant and the customer.
Building the merchant / customer relationship
Beyond the transaction lies the opportunity to build ongoing relationships with customers. Subscription models have become increasingly popular and for good reason – they create consistency for both businesses and customers.
The key is to ensure that recurring payments feel effortless and manageable. When payment details are securely stored and integrated into the customer experience, repeat transactions can happen without interruption. At the same time, users expect clear visibility and control over their commitments.
That balance is important – convenience encourages retention, but transparency builds trust. Regulators are reinforcing this by ensuring that cancellation processes are straightforward and accessible. When handled well, customers remain because the service continues to meet their needs, not because leaving is complicated.
Commerce is global, payments should match
With ecommerce becoming increasingly global, checkout experiences must match these international expectations, but one of the most common sources of friction remains the cross-border checkout. Shoppers strongly prefer to see prices and complete purchases in their own currency and when forced to navigate unfamiliar exchange rates or fees confidence can drop and abandonment soon follows.
Embedding currency conversion directly addresses this checkout challenge. Displaying local pricing, applying transparent exchange rates and supporting local payment methods all contribute to a more reassuring and trustworthy experience. For merchants, this translates into stronger performance in international markets without fundamentally changing their core offering.
The checkout is evolving into a growth engine
The payments industry, like much of technology, is moving away from rapid experimentation towards more measured and sustainable innovation. Investment patterns have shifted, and regulatory oversight has increased, placing greater emphasis on stability and consumer protection.
In this environment, progress is less about introducing entirely new concepts and more about improving how existing systems work together. The focus is on refining key moments, particularly checkout, where small enhancements can deliver meaningful results.
Embedding additional value into each transaction, whether through financing, loyalty incentives, currency tools or personalised experiences, allows merchants to strengthen performance without unnecessary complexity. The goal is not to replace what already works, but to build on it in a way that feels natural and effective.
Success will come from execution rather than novelty, notably making every interaction smoother, clearer and more valuable. Embedded finance is not a future concept. It is already here, and its impact will continue to grow through steady, practical improvements that make each payment moment count.
