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Understanding the nuances of referral take-rates versus in-context finance offers is crucial for merchants and platform providers alike. Take-rate refers to the percentage of each transaction that a platform provider earns. Referral take-rates typically involve a platform referring a customer to a third-party financial service, earning a commission for each successful referral. This model, while beneficial, often falls short in terms of customer engagement and satisfaction, as it lacks seamless integration into the customer journey. In contrast, in-context finance offers embed financial services directly within the customer’s primary activity. This integration significantly enhances the user experience by providing relevant financial products at the exact moment they are needed. For instance, a merchant managing their accounts receivable might find options for invoice financing within their product purchasing platform, streamlining the process and making it more convenient. This approach not only boosts customer satisfaction but also increases conversion rates as it aligns with the user’s intent and journey. For merchants and platform providers, the impact of these models is profound. While referral take-rates can generate additional revenue, they often do not add substantial value to the customer experience. On the other hand, in-context finance offers can transform the user journey, making it more intuitive and engaging. This can lead to higher customer retention and loyalty, ultimately driving more conversions and revenue. Embracing in-context finance is a strategic move that aligns financial products with customer needs, fostering a more integrated and satisfying user experience. #KanmonFinancing #EmbeddedLending #InContextFinancing

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