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Why Vopy?

Vopy’s platform and knowhow can enable you to engage and serve your customers in new and meaningful ways.

With Vopy as your tech partner, your business, under its own brand, can offer a range of financial services to your customers and enable them to move money faster and cheaper than they do through traditional banks.

With Vopy, your business can offer various plug-and-play marketing services with high margin to your customers.

By offering Vopy’s features to your customer base, you can expect to increase customer loyalty, satisfaction, engagement and retention at one end, and generating new revenue streams on the other.

1

What is
embedded finance?

"Banking is necessary, banks are not"

Bill Gates was clear about this already back in 1994.

Companies report two core disadvantages of handling financial products and services through banks (and even most fintech companies):

  • Time delays (commonly measured in days)
  • High fees

Due to the lack of alternatives, these disadvantages are considered as a cost of doing business.

This is where embedded finance can deliver its core value: it allows businesses to offer financial services faster and at a lower cost, even outside the traditional banking network, while keeping your customers within the confines of your original offering.

Embedded finance is a collective term for seamless integration of financial services in the company's brands, and can be defined as:

The seamless integration of 3rd party financial products and services* into a receiving company offering, while the receiving company retains complete control over the offering and customer experience.

*Financial products and services: Such as digital wallets, payments, money transfers, remittance, debit/credit cards, lending, bill payments, settlement, payroll and more; i.e. processes that have to do with managing money.

The core value of embedded finance allows businesses to offer financial services faster and at a lower cost, without the traditional banking network. While still retaining your customers within the framework of your original offering.

Why should you care?

Embedded finance is considered to offer a market opportunity worth more than $7 trillion in ten years. Nevertheless, most of the companies that contact us are not experts in embedded finance and financial services. The most common questions we are asked are:

  • How can non-financial corporations (e.g. consumer brands, retailers, telcos etc) use it to add value to their customers?
  • How can financial actors modernize, expand their offerings and take advantage of new markets?
  • How can both type of companies reduce customer churn and increase revenue as a result?

The ultimate purpose of embedding financial products and services into your offering is to generate financial rewards for your business by enhancing the customer experience and value (with the financial products and services you choose to integrate). Embedded finance is designed to help companies leverage the trust they built with their customer base by opening up the possibility to serve them in new and meaningful ways without having to refer them to 3rd party financial providers. This opportunity drives both customer retention and new revenue streams.

2

How does embedded finance work in practise?

Embedded finance is used by both non-financial corporations (e.g. consumer brands, retailers, telcos, large techs and software companies, car manufacturers, airlines, insurance providers etc) and financial institutions (e.g. banks, fintech, financial services providers, remittance companies and more).

This is how a Telco becomes a loan provider and an airline becomes a neobank. McKinsey emphasizes the relevance of embedded financial services in March, 2021:

“Today, companies of all types and levels of maturity—including retailers, telcos, big techs and software companies, car manufacturers, insurance providers, and logistics firms —are considering and preparing to launch embedded financial services to serve business and consumer segments.”

This means: Today, the handling of financial products and services no longer needs to be done through banks. It is not necessary to have a full banking license to provide financial services (such as issuing payment cards, loans or digital wallets). Businesses do not need to build their own bank to gain control of financial services and increase margins.

Setting up an internal bank, digital wallet or payment scheme is a process that can be very complicated, costly and time consuming. Embedded finance represents the best of all worlds: It is the middle way to give companies control over financial products and services and increase margins. Without having to make significant investments and operational risks.

For example:

Telcos offer loans directly to their customers.

Banks are digitizing their services by adding digital wallets and cards to the offer; FinTechs enhancing their infrastructure to enable scaling and rollout of their services.

Car manufacturers offer credit lines and leasing products to finance their cars.

Airlines offer loans for financing a vacation.

Clothes retailers offer consumer financing through buy-now-pay-later schemes.

Remittance companies offer shared family accounts to their users, making international money transfer cheaper and faster.

IT companies that add plug & play digital wallets to the offer or services to niched target groups (e.g. parents who give pocket money to their children);

SMEs offer payment cards to millennials and students.

Ride-sharing company that enables instant payment of the drivers via debit cards.

The uses and possibilities are endless. Our team at Vopy can help you in understand the dynamics and opportunities that lie within the field of embedded finance and how embedded finance can be used in your specific context.

4

Why choose Vopy as your embedded financial provider?

Vopy product features are built with cutting edge technology, the highest standards of security and user experience in terms of engagement and loyalty in mind. You can easily and quickly connect Vopy’s features to your business offering and increase your relevance and value to your customers.

All of Vopy's features offered as

1. A full service white lable solution (i.e. a new app under your brand) and

2. through APIs, seamlessly integrated into your existing app or digital environment.

By offering Vopy’s features to your customer base, the added value for your business lies within:

  • Increased engagement and loyalty
  • Reduced customer churn
  • Opening new revenue streams

The product features of Vopy are bundled in and available through the Vopy digital wallet. These features can be core (those available by default) or add-ons (features available on request).

The digital wallet is designed to make onboarding intuitive and user friendly. The speed, ease of use and low cost of moving money with Vopy’s digital wallet, set a new standard globally in the fintech industry. This includes an uncompromising approach to security.

Contact us for a free consultation, and let us find out how our embedded finance can work for you!

5

Benefits for your customers

Let us first examine how your customers can benefit from Vopy's financial products and services, embedded into your offerings. The specific value will depend on which products and services you choose to integrate.

The added values boil down to:

  • A seamless user experience (an intuitive one-stop-shop in your app/website).
  • More features and opportunities that provide value to your customers (verticalization).
  • More competitive offers (e.g. better prices, higher speed and more function) compared to traditional solutions.
  • Convenience (leverage the customer trust you already have built, helping your customers do more with and through your brand).
7

Benefits for your business

Vopy benefits businesses with:

  • Reduced customer churn
  • New revenue streams
  • Expanded customer offering
  • Increased customer lifetime value
  • Boosted customer loyalty
  • And more

While the specific benefits to your business will naturally depend on which Vopy products and services you choose to incorporate into your offering, all benefits are ultimately designed to

  • Increase customer value, satisfaction and loyalty (business continuity)
  • Increase customer retention (i.e. reduce customer churn)
  • Modernize an existing offering (better UX and optimized processes)
  • Scale and increase market share (take advantage of our licenses)
  • Open new revenue streams (by offering new products and services)
  • Cut costs (by tech optimization)
Vopy socialmedia

Examples of how to benefit from Vopy

Social media

Our client is building a social media community where the younger generation can use the power of social media to build a more compassionate and kinder world. The Silicon Valley-based client now enhances the customer's user experiences by embedding safe, cool, and instant payment services.

Vopy will offer APIs to seamlessly integrate a mobile wallet within the social media app. Vopy will also enable a virtual and physical Mastercard with the cool look and feel of the social media brand. The service will first be rolled out throughout Europe and then globally.

Launch planned for Q4 2021.­­

Vopy internationaltransfer

International money transfer

European migration communities from developing countries in Asia, Africa, and South America, experiences pains in remitting money home to their relatives. The banks and the incumbent money transfer offices are expensive for the migration community and the services are neither instant nor transparent. According to the international organization of mobile operators (GSMA), more than 800 million of the worlds' 1 billion mobile wallets are in emerging markets like Africa and South Asia.

Vopy is working with several mobile wallet partners with a strong brand recognition and trust in their home countries. Vopy has offered them a white label “Remit Home” wallet in Europe, directly connected with their wallets in the receiver markets. This means a wallet provider with up to 100 million users in the receiving market can provide wallet-to-wallet cross boarder remittance from Europe - seamlessly and sending in a spilt of a second including transparent pricing for the sender. Vopy will provide the white label “Remit Home” wallet across more than 20 countries in Europe.

Launch planned in Q4 2021.

Vopy telecom

Telecom

Vopy will provide a fully branded digital wallet to one of the largest telecom operators in Central Europe, with this initiative the telecom extends its services beyond communication by providing a digital wallet where customers can transfer money between accounts in real time at no cost.

The roll out of digital wallet will impact all the markets where the telecom has operations on, the idea is expose 40+M customers to embedded financial services.

Launch planned in Q1 2022.

Vopy neobank

Neobank

One of our clients is a UK-based venture which will offer ethical and smart alternatives for their customers to manage money. The target segment is consumers who from regulatory initiated lawsuits have received claims from non-responsible consumer lenders.

The customer can open their account in a minute and the cash advancements from the claims will be instantly transferred into the account. The neobank will help customers to improve their credit score by incentivizing savings and responsible consumer lending.

The neobank will also, through its marketplace services, help the customers to choose the best provider of mortgages and insurances to improve the family´s financial health.

Launch planned for Q1 2022.

Contact us for a free consultation, and let us find out how our embedded finance can work for you!

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