Embedded finance transforms retail with seamless transactions, partnerships

Integration boosts retail convenience but raises security challenges.

Embedded finance is revolutionising the retail sector by integrating financial services directly into the consumer experience, making transactions smoother and more convenient, according to Sirinpach Lauhapattanapreecha, Chief Governance Officer at ERGO Insurance Thailand.

Lauhapattanapreecha said that this integration eliminates the need for consumers to leave the platform, enabling seamless purchases, loans, and payments.

However, embedded finance also brings risks, particularly in cybersecurity. “These days we are actually facing a lot of scammers, hacking either in your computer, your mobile... to make you have some fear to transfer the money easier,” Lauhapattanapreecha warned.

Enhanced security features like hyper-personalisation and double passcodes help mitigate these risks. Moreover, partnerships between banks and tech companies are essential to embedded finance's success.

“One of the biggest advantages... is the ability to access financial products like buy now, pay later (BNPL) options... directly within the return mobility platforms,” Lauhapattanapreecha said. Such collaborations offer consumers flexible payment solutions for high-value purchases and mobility services, easing financial burdens.

She said that while embedded finance enhances convenience and purchasing power, businesses must prioritise security to sustain consumer trust and long-term growth.