Why US SMBs Must Offer In-App Embedded Payment Processing to Their Customers

Embedded banking services for SMB are becoming more and more popular, and there are all conditions for this. So, thanks to these technologies, SMB and consumers can easily access the necessary commercial banking services.

What exactly are embedded banking SMEs for SMB and why you should learn more about these technologies.

What Are Embedded Payments?

Previously, you had to rely on third-party integrations to process payments. All this led to a separation of the customer experience between the payments themselves and the software. Since the payment needs of companies have often remained unmet by payment providers, there is a need to address this issue.

This is where developer companies come to the rescue, taking on the role of intermediaries in the payment process and even offering embedded finance SMEs payments in their own products. This increases customer satisfaction and optimizes all processes.

As for the providers themselves, they remain in the black thanks to the preservation of the commission for finance operations processing. And software vendors are becoming more customer-centric.

Read also: What Is Backend in Mobile App Development and How to Create a Custom One

How Embedded Payment Processing Evolves Business Apps

With built-in payment systems, apps can be more dynamic and improve user experience. One good example of successful integration is the Uber app. It automatically charges funds based on the data specified by the user. Thanks to the high-quality deep integration of the payment system, the two halves (the taxi service itself and the payment system) have practically merged into one.

Having integration with the payment service, the user does not need to leave the application and go to the banking service for payment, which saves the user's time.

5 Reasons to Implement Payment Processing in Your App

1. Fewer Steps in the Sales Funnel

The conversion decreases with every extra step that the user needs to take. If the user goes through the full purchase path on your site, he may even increase the final check.

2. Carefully crafted UX

Even filling in the data on one page, instead of two or three, is your key to success. Even the smallest detail can be decisive when choosing your product.

3. Increased security

Since everything happens within the same framework, the risk of data interception by intruders is reduced. If the payment gateway is built into your product, all data remains between you and the customers.

4. No more chasing bills

Any SDK integration simplifies reporting, you can set up automatic invoices and invoice generation. Convenient and practical.

5. Additional income

This integration can give you a competitive edge. You will be able to offer fast and quality service.

How Much Does It Cost to Develop Payment Processing Feature

The development of a payment instrument depends on many factors, just like the development of any other product. According to rough estimates, the development of an MVP of this type of product costs from 200 to 250 thousand dollars.

The cost will be affected not only by the functionality, but also by the location of the developers that you choose to complete the tasks. We recommend choosing outsourcing companies that have relevant experience.

Read also: Mobile App Design Best Practices: 4 Do’s and Dont’s

Our Experience in Developing Payment Processing

The TopDevs team has experience in developing  fintech custom software development for clients. One such example is the 24/7 billing system. Payment processing application for sole traders and small and medium businesses.

We have completed the full development cycle of the application, and created an application to help those small businesses and individual entrepreneurs who cannot afford the financial services of traditional banks or simply do not meet them.

You can read more about this application on our website.

The Final Note

Payment automation can greatly increase user satisfaction and gain a competitive edge. Using integrations you will increase the quality and safety of your product.

Get more profit from your business and save time processing your business statistics. You can quickly generate reports and improve sales performance.