Adyen Debuts Embedded Financial Tools in US, Europe

Dutch FinTech Adyen has launched two new embedded finance products for platform and marketplace businesses in Europe and the U.S.

According to a Sunday (Oct. 23) news release, the products are “Capital,” which lets platforms offer businesses finance based on historic payments data, and “Accounts,” which allows users to “run their finances where they do business” and recieve access to funds instantaneously.

“Platforms are at the center of a transforming financial services industry – and Adyen is primed to further drive this revolution,” Adyen co-founder and CEO Pieter van der Does said.

Related: Adyen to Expand Into Embedded Financial Products

“Embedded finance is a logical next step following our embedded payments offering. By historically investing in our banking licenses and industry-leading technology, we have positioned ourselves as the sole provider offering a full embedded financial product suite via a single integration.”

The launch comes seven months after Adyen debuted its suite of embedded financial products, designed to let platforms access new revenue streams and boost customer loyalty.

These sorts of embedded financial services will be vital for small businesses in a challenging economic climate, Brian O’Connor of JPMorgan Chase wrote in the new PYMNTS eBook, “What’s Your Plan? Payments Strategies for a Strong 2022 Finish.”

“While most corporates focused heavily on digitization over the past two years, today’s recessionary concerns, inflationary pressures and interest rate hikes are again forcing businesses large and small to re-evaluate their business practices,” O’Connor wrote.

Read more: Embedded Banking Helps SMBs, Platform Providers

First of all, companies whose business models were driven by investment dollars when interest rates fell, and whose main valuation metrics were fueled by user growth, are seeing massive valuation pressure and investor expectations for profitable revenue growth in a new, and different economic climate.

Secondly, in an environment of high inflation, both small businesses and platform providers are facing pressure to access their sales proceeds and redeploy funds efficiently.

Finally, O’Connor said, SMBs are seeking efficiencies “around how and when they pay their obligations, many platform providers see the significant cost of compliance as they consider the move into providing regulated financial services.”