Embedded Finance in E-Commerce: How FinTech Integrates Payment and Lending Services to Enhance Consumer Purchase Conversion

Abstract

This paper identifies the issues preventing transactions and addressing this key point is FinTech Payment by integrating one click
payment on the basis of ease of traditional payment (from 5-7 steps, over 4 minutes per transaction to one click) and meet consumers'desire
for quick lending (28% users drop high-value purchases for want of fast credit). Using desensitized data of 3 US-based e-commerce platforms
(2023 - 2024), the research studies the integration process of Fintech in providing an easy one-click payment system.
Cross-scenario and POS installment & real-time credit lending services can be beneficial in improving conversions. The results suggest that
Embedded finance cut down the time for payment by 79%, boosted high-ticket conversion rate by 22%, reduced cart abandonment by 58%.
Besides, it brings some risks such as 8% of credit defaults and 5% data breaches. E-commerce platform and FinTech firms should collaborate
with each other and balance user experience and risks, then utilise these opportunities to grow further.