apidays New York 2023 APIs for Embedded Business Models: Finance, Healthcare, Retail, and Media May 16 & 17, 2023 Embedded Payments in B2B and B2C use cases Adrita Bhor, Senior Director of Product Management, Paypal ------ Check out our conferences at https://www.apidays.global/ Do you want to sponsor or talk at one of our conferences? https://apidays.typeform.com/to/ILJeAaV8 Learn more on APIscene, the global media made by the community for the community: https://www.apiscene.io Explore the API ecosystem with the API Landscape: https://apilandscape.apiscene.io/

1. EMBEDDED PAYMENTS
Use cases in B2B and B2C
fintech
ADRITA BHOR,
SR. DIRECTOR OF PRODUCT, EX-
PAYPAL

3. Agenda
• Introduction
• Definition of embedded payments
• What is the market size of embedded
payments
• How to build this
• SWOT Analysis
• B2B Embedded Payments Use Case
• B2C Embedded Payments Use Case
• Best practices in embedded payments
• Future of Embedded Payments

4. Introduction
• Product executive and business general manager, with P&L expertise in
building end-to-end B2B/B2C payments experiences.
• Most recently as Sr. Director of Product at PayPal leading Platform
Consolidation and Enterprise API development.
• As a managing director at Silicon Valley Bank, led the bank’s Direct Channel
product offerings including their Banking-as-a-Service API Platform, TAG
and ERP embedded payments.

5. What are embedded
payments and
finance?
Embedded payments refer to the
integration of payment processing
directly into another platform or
application. This integration can
provide a seamless payment
experience for users while also
reducing the complexity of
payment processing for the
business.

6. How big is the market size
of embedded finance?
• BAIN and Company research says financial services embedded into e-commerce
and other software platforms accounted for $2.6 trillion, or nearly 5%, of total US
financial transactions in 2021, and by 2026 will exceed $7 trillion.
• Allied Market Research estimates that the global embedded finance market size
(outside of e-commerce) was $54.6 billion in 2020 and is expected to reach
$722.7 billion by 2030, growing at a CAGR of 28.7% from 2021 to 2030. Another
report by Mordor Intelligence forecasted that the global embedded finance
market would grow at a CAGR of 15.8% during the period 2021-2026.
• It includes areas of
• Embedded Banking
• Embedded Payments
• Embedded Lending
• Embedded Insurance
2023 WhiteSight

7. How do you
build this?
• Understand the integration use cases and different segments of customers.
• Build an API Platform that allows businesses to seamlessly integrate payment, banking and
financial services into traditional non-tech verticals like healthcare, construction, real estate
etc., without having to build their own payments infrastructure
• Build standard integration playbooks and Postman Collections for these APIs and share with
clients
• Allow for basic customizations and tailor payment experiences to the specific needs of the
industry vertical. You can also treat them as B2B and B2C use cases
API as a Product à APIs as a business (new revenue channel)

8. SWOT Analysis Strengths
• Seamless and convenient
• Increased user engagement and
retention
• Expanded customer base:
Weaknesses
• Third-party platform dependency
• Security and fraud risks
• Losing customer trust
• Complex regulations

9. SWOT Analysis Opportunities
• Market growth
• Innovation: integrating new
technologies such as blockchain,
artificial intelligence, and
biometrics.
• New revenue streams
Threats
• Competition: Crowded space
with all-in-one API startups like
Synapse, Solidfi, Unit etc.
competing with larger financial
institutions
• Changing consumer preferences
• Regulatory changes

10. 9
Value API offerings
Domestic/Glob
al Status Volume KPIs
Directly
Monetizable
VCN Global Launched X req/day txns/day Y
ACH Domestic Launched Req/day txns/day Y
Wires (USD, Intl.) Domestic Launched Req/day txns/day Y
FX Global In Dev Booked txns
Transfers Backlog
PSD2 (PISP) EMEA Launched AISP/PISP requests
Check Print Domestic Backlog Y
Reversals and Recon Planning Y
Counterparties In Dev Y
Accounts Launched Z accounts/day
Onboarding Domestic Deprecated --
Identity/Auth Domestic Launched --
PSD2 (AISP) EMEA Launched
Search
Accounts & Transaction History (Direct Connect +) -- -- -- Y
Webhooks -- Launched -- Subscriptions/events
IAV, Account & Counterparty verification -- Launched -- verification calls Y
IDV – Identity Verification Domestic + Global Planning Y
Risk Verification and Scoring Global Backlog --
Enhanced public offerings on Payments, Reversals, Reconciliation, Identity, Accounts, Search and History
Risk,
Sanctions
Accounts Horizontal
Payments
SVB B2B BaaS Platform (a sample)
https://developer.svb.com/

11. B2B Embedded Payments
Integrate payments through ERPs like Oracle Netsuite and Sage Intacct using FISPAN ERP
connectors and SVB Banking-as-a-Service APIs
• FISPAN provides a central integration module for Accounts Payables, Accounts Receivables, real-time transaction history
through SVB with an embedded customized UI.
• Client finds the SVB app in the ERP Marketplace, gets approved and downloads the app into their ERP.
• Client logs in, finds a batch of payments, selects how to pay, kicks off approval flows which reach SVB through BaaS APIs
• Client finds integrated SVB transaction history inside their ERP Reporting.

12. Embedded Payments inside ERP

13. B2C Embedded Payments
The classic embedded payments acceptance direct to customer use case is PayPal checkout.
• Merchant integrates with PayPal’s Checkout APIs/SDK/button to start accepting payments.
• Buyer clicks a payment button and logs into PayPal.
• Selects the funding instrument from the wallet and approves the transaction on PayPal.
• Returns to your site where you show the payer a confirmation page.

14. B2C Embedded Payments
Uber’s payments platform orchestrates across its various businesses on
one side and multiple PSPs on the other along with it’s own core
payments facilitation capabilities.

15. Best Practices in Embedded Payments
• Partner with a reputable payment service provider (PSP) - A
reliable and trustworthy PSP can offer a secure and seamless
payment experience for users, reduce the risk of fraud, and
ensure that transactions are processed quickly and efficiently.
• Ensure compliance with industry standards through your PSP -
It is crucial to comply with industry standards such as PCI-DSS,
3DS, and other relevant regulations to ensure data security.
• Simplify the payment user journey - easy-to-follow steps can
reduce the chances of users abandoning the transaction.
• Provide multiple payment options – Everything from credit
cards, digital wallets, and bank transfers can increase the
likelihood of customers completing transactions.
• Test and optimize the payment experience - Optimizing the
payment process can help reduce the likelihood of errors,
improve transaction speed, and increase the success rate of
payments.
• Should you build or partner or buy this capability?
• Understand the granularity and mapping of the APIs – how
composite or atomic do they need to be so that changes can be
mostly additive over time
• What are the API KPIs? Growth, Engagement, Monetization
metrics
• Focus on internal dogfooding and adoption by sharing
documentation and updates regularly and track those metrics
• Stay informed of changes in the payments industry - stay
informed of any changes in the industry, such as new regulations,
emerging technologies, and shifting customer preferences.
• Make API notifications configurable
• Make the underlying processes that serve these APIs more
efficient
API Consumer API Producer

16. Future is beyond embedded payments White Paper

17. Conclusion
• Embedded payments is an area of API
integrations that is poised to grow rapidly in the
next decade, transforming traditional non-financial
businesses like healthcare and transportation as
payment companies.
• It offers several benefits, including increased
convenience, improved customer experience, and
reduced payment friction.
• There is a green field of innovation where
advancements in AI, Blockchain and Payments can
be brought together, beyond just risk and fraud
detection and faster settlements.