Embedded finance changes the face of the payments market

The concept ofembedded finance is rapidly transforming the payments market. The term refers to the integration of financial services into non-financial platforms, allowing companies from various sectors to offer banking and payment solutions directly to their customers.

In practice, this means that it is possible, for example, for a beauty salon or a small business, both physical and digital, to sell everything from micro-insurance and personal loans, to digital accounts and automation software for small businesses, in addition to the goods they traditionally sell. In return, they keep a percentage of the sale.

One of the main drivers of this change is technology. With the advance of APIs (application programming interfaces) and the increasing digitalization of services, it has become easier for companies of all sizes and activities to incorporate financial functionalities into their applications, websites and payment systems. This is an innovation that promises to simplify transactions and also create new business opportunities and improve the consumer experience.

One of the business groups that has been exploring this trend is Grupo Entre, an ecosystem of companies focused on the means of payment market, aggregated digital services and financial solutions. Founded in 2016 by professionals with more than 30 years' experience in the financial market, the group was created with the aim of being a business facilitator, bringing innovation and more agile solutions to companies, says its CEO and founder, Antonio Freixo, Mineiro. 

According to him, the group's centerpiece today is EntrePay, an acquiring company that enables other financial and retail companies to act as payment methods with its own branded machines. Through the machines of these partner companies, the group offers a series of products and services, ranging from new payment solutions, such as pix in installments, to P2P credit (between peers, without the intermediation of a bank), micro-insurance and management automation platforms for small businesses.

"We believe that embedded finance will radically transform the means of payment market, which is currently based solely on charging fees on customer transactions, and make it more competitive and inclusive," says Freixo. "Small entrepreneurs will be able to earn extra income and have greater access to financial services, even in regions far from major centers, where there are fewer options today," he says.

This trend is not only convenient for consumers, but also offers significant advantages for companies. By offering financial services directly, companies can increase customer loyalty, collect valuable data on consumer habits and create new sources of revenue. 

According to a study by consultancy Deloitte, embedded finance is expected to generate around R$24 billion by 2026, redefining competitiveness in the means of payment sector, allowing companies to diversify their sources of revenue and offering consumers new service options.

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