The age of the non-payments nerd is upon us: how innovators are democratising financial services

With the rise of embedded payments, an increasing number of non-financial companies are seeing value in making transactions a central part of their user experience.

And the numbers bear this out. According to research by Future Market Insights, the embedded finance market is projected to surpass $291 billion by 2033 based on a CAGR of 16.5% - up from $63.2 billion in 2023.

Use cases range from companies offering fans branded credit cards as part of loyalty programmes, to e-commerce platforms giving customers a choice of their favourite payment methods. 

Even car manufacturers are getting in on the act, with automotive firms embedding payment functionality in dashboard infotainment systems.

But what’s helping to drive this trend - or, as we call it, the rise of the non-payments nerds? 

A clue perhaps lies in a recent thought leadership piece by PWC, which argues that fintechs have shown how it’s possible to thrive in financial services without a fully-fledged banking licence. 

Many innovators have built successful payment firms with what is called an Electronic Money Institution (“EMI”) licence. Some businesses see this as a step towards a full banking licence. 

The upshot is that it’s become much easier for non-financial businesses to offer payment experiences to their customers. 

Yet there’s much more to it than simply possessing the regulatory authorisation to facilitate transfers of money. 

Fintech innovators have also built up a wealth of expertise and knowledge, both of the financial system itself and of the technology needed to make funds flow where customers and merchants demand.

This is why we’re seeing world famous companies like Harley Davidson offering credit cards to customers. 

The global motorcycle brand has created two Tymit-powered products - H-D Ultra Card and H-D Classic Card - aimed at building affinity with easy riders. By using the cards, HD fans can accumulate points that translate into value to be used on other goods. 

The Ultra Card, which comes with an annual fee, provides bikers with added benefits such as tyre insurance, enhanced cardholder services, extra loyalty points and access to Visa’s Luxury Hotel Collection. 

Staying with automotive, car maker Škoda is another exciting example of a non-financial business harnessing the power of payments. 

The car maker recently expanded its digital services to include Pay to Fuel, which is being enabled in partnership with Parkopedia, Mastercard and German fintech ryd.

The service is available in Germany, Denmark, Austria, Belgium, Switzerland and Luxembourg, with participating service stations shown on in-car navigation systems. 

Motorists select a station in advance and the site automatically recognises the vehicle upon arrival. The driver then opens the app on the infotainment system and enters the pump number.  

Once refuelling is complete, the amount of fuel is confirmed on the screen and payment is then processed via a linked debit or credit card. A transaction notification then advises the driver that they are good to go.

Elsewhere, healthcare specialist Bupa has used payment innovation to give workers more flexible access to their earnings.

After joining forces with digital platform Wagestream, some 6,500 Bupa Dental Care staff colleagues have been able to benefit from real-time access to earned wages. This means employees can draw down earnings as soon as they complete shifts rather than having to wait until payday. 

Workers also have access to the Safestream pot to make ‘microsavings' - small sums collected regularly from pay packs.

Additionally, colleagues can attend webinars and take advantage of other financial education tools as part of a partnership between Wagestream and The Money Advice Service.

The important commonality among all of these companies and many more is that fact that payments are not their core business. However, as forward-thinking organisations, they have realised that there is immense value in giving customers or employees access to financial services as part of their user experience. 

And with the right external support, it’s possible for non-payments nerds to deliver leading edge innovation. In fact, it’s what Marqeta has done for companies like Uber, DoorDash and WorkWhile. 

There are a number of ways of embedding payments innovation within your business, depending on your abilities and capacity.

These range from merely accessing our open API and taking care of all the necessary payment functions such as BIN sponsorship and compliance reporting to a ‘Managed by Marqeta’ programme management package. The MxM option allows you to concentrate on marketing and user experience, while we abstract the complexity that surrounds the financial ecosystem.  

So by tapping into our payment nerdiness, you can remain focused on your core business doing amazing non-payment nerdy stuff.