Embedded lending tools, integrated directly into merchants' platforms, allow borrowers to apply for credit at the point of purchase, such as new credit cards or BNPL options. However, a global survey by PYMNTS Intelligence, involving over 8,300 consumers from six countries, reveals that only about half of these consumers are satisfied with the current availability of such options. The study, sponsored by Visa, indicates significant disparities among countries in consumer satisfaction with embedded lending. For instance, while nearly 60% of Indian consumers are content with these services, only 25% of Japanese shoppers feel the same. Key issues include restrictive credit limits and high fees. Despite these challenges, there is a high interest in embedded lending among younger generations, suggesting a considerable unmet demand. Addressing these issues could enhance consumer satisfaction and expand market opportunities in embedded lending.
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