US Bank quietly takes aim at BaaS providers with enterprise-grade embedded payment launch
US Bank expanded its embedded payments infrastructure on June 17, making a notable push by a traditional financial institution into territory largely shaped by fintechs and banking-as-a-service (BaaS) startups.
The new suite of Embedded Payment Solutions now offered are designed for websites, apps and e-commerce companies to integrate a payment gateway to support faster and secure payments for customers and suppliers.
The offering includes a ‘robust-for-benefit’ (FBO) solution for companies to move money on behalf of their customers. The account structure will support unlimited virtual accounts, allowing businesses to identify and track funds for each customer.
By integrating the FBO, US Bank will verify and onboard customers, and provide payment support. A broad range of payment types – including instant payments – will also accommodate the payer and payee needs and preferences.
“Today’s finance leaders are under increasing pressure to optimise liquidity, reduce friction in payments, move quickly and enhance the customer experience,” said Kristy Carstensen, Head of US Bank Treasury and Payment Solutions.
“Our expanded embedded payments suite empowers organisations to embed secure, real-time payment capabilities directly into their platforms—streamlining operations and strengthening financial control.”
US Bank has focused on developing its embedded payment offering through its subsidiary Elavon in order to support merchants with interoperable payment options which meet the needs of their customers.
Serving over 30 countries globally, Elavon offers a range of payment solutions such as payment processing, online payment gateways and mobile payments, for businesses and merchants of all sizes.
The company also focuses on data security as merchants are increasingly relying on third parties to leverage their expertise to combat potential cyber attacks and fraud. This in turn gives small businesses in particular, time to focus on scaling business operations.
“We are leveraging our comprehensive range of services – from merchant processing to treasury management – to deliver integrated, embedded solutions that provide efficient and secure transactions tailored to the dynamic needs of businesses,” said Jamie Walker, CEO of Elavon.
A growing US embedded payment market
While embedded payments have surged in usage across Europe over the last several years, the same can be said across the Atlantic.
An EY report estimated that the volume of consumer and business payments powered by embedded finance solutions is set to reach $6.5trn this year, more than doubling the amount processed in 2021 ($2.5trn).
More and more US businesses are realising the benefits of embedded finance services to streamline operations, like payments, with tried and tested service providers to offer the best user experience for their customers.
