In the series about Embedded Finance, FinFan discussed the benefits that embedded finance brings to other industries, the types of embedded finance, and its challenges and risks.
Through them, we can partly imagine the importance of embedded finance in the new era. Today, let's explore more with FinFan this future industry, and its impact on the world's economy.
More than 10 years ago, if someone sent you a Hollywood movie about a scene of people transacting with each other through a few mouse clicks or a few operations on the phone, you would probably just see it as a sci-fi movie and completely unreal.
However, in the past few years, as science has been continuously developing and technology is increasingly improving, this idea is no longer something too far-fetched (not only for the financial industry).
Nowadays, you can completely transfer money from one place to another (even halfway around the world) with just a few extremely simple steps on your phone as the industry remittance distribution is increasingly improved with more modern technology.
Moreover, today you just need to sit at home and still be able to buy an item thousands of kilometers away with the shipping process only taking an average of 2 days.
Most recently, we can see some roadside shops have started posting QR codes for customers to pay through e-wallets such as MoMo and VNPay.
Because of these conveniences that embedded finance brings, people in some major cities in Vietnam use less cash than before. Because of the conveniences that embedded finance brings, people in some major cities in Vietnam use less cash than before. If it continues to develop at the current fast and strong pace, maybe within the next 20 years, the prospect of all people paying without cash will appear.
You want to own a new iPhone but don't have enough money to buy it because your income is not enough. Previously, when embedded finance had not yet appeared, there would be two cases:
However, today with the development and support of embedded finance, especially BNPL services, you can immediately own your dream iPhone and pay monthly installments for the service above.
The same thing will happen when you need some money urgently to cover a certain expense at work but cannot borrow from banks and other financial companies. With the support of embedded finance, peer-to-peer lending services also take place continuously through convenience stores or by scanning QR Codes. These services are even combined with e-wallets to bring users the experience of borrowing money first and paying later.
In fact, thanks to the support of embedded finance and the technologies that connect the financial system to non-financial industries that they bring, the development of other sectors has also increased significantly.
For example, thanks to embedded finance, fashion shops, and cafes can create more incentive programs for their customers with different forms of payment.
Gone are the days when consumers had to rely solely on banks for their financial needs. With embedded financial services, businesses across various industries can now offer tailored banking solutions directly within their own platforms. Whether it's e-commerce platforms offering instant loans or ride-hailing apps providing digital wallets and payment options, the integration of these services is revolutionizing how we interact with money.
Typically, when paying with a VISA card on Shopee, customers will receive more promotional vouchers, along with that, customers will also receive a partial refund for the items they purchased on that VISA card.