Adyen launches embedded financial tools in US, Europe

Dutch FinTech Adyen has launched two new embedded financial products for platform and marketplace companies in Europe and the US

According to a news release on Sunday (Oct. 23), the products are “Capital,” which allows platforms to offer businesses financing based on historical payment data, and “Accounts,” which allows users to “run the economy where they do business” and access funds immediately.

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

Related: Adyen to expand to embedded financial products

“Embedded Finance is a logical next step after our embedded payment offer. By historically investing in our banking licenses and industry-leading technology, we have positioned ourselves as the only provider to offer a fully embedded financial product suite via a single integration.”

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

These types of embedded financial services will be critical for small businesses in a challenging economic climate, Brian O’Connor of JPMorgan Chase wrote in the new PYMNTS e-book, “What’s Your Plan? Payment Strategies for a Strong Finish in 2022.”

“While most businesses have focused heavily on digitization over the past two years, today’s recessionary concerns, inflationary pressures and rising interest rates are once again forcing businesses large and small to rethink their business practices,” O’Connor wrote.

Read more: Embedded Banking helps SMEs, platform providers

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

Second, in an environment of high inflation, both small businesses and platform providers face pressure to access sales revenue and reallocate funds efficiently.

Finally, O’Connor said, SMEs are seeking efficiencies “around how and when they pay their obligations, many platform providers are seeing the significant cost of compliance as they consider the transition to offering regulated financial services.”