Solaris: The Mobility Sector Wants Embedded Finance
According to research by Solaris and the Handelsblatt Research Institute, the European mobility sector is experiencing growth in embedded financing potential.
Over one-third of consumers create accounts and apply for credit cards or loans with the most well-known mobility brands, according to the Mobility White Paper, which compiled data from the top 25 mobility providers in Germany, France, Italy, and Spain. A ride-sharing or transportation service operator is referred to as a mobility provider.
With 61.8% of respondents, Italy had the most significant percentage of people who said they would use embedded financing services from a mobility brand, followed by Spain (51.3%), Germany (36.1%), and France (33.3%).
According to the study, customers are more likely to use more recent digital goods and services if they are already familiar with the brand. Trust is crucial, and respondents say they feel safer and more reliable around brands with a strong position in the market.
In Germany, adults between the ages of 25 and 34 had the highest willingness to utilise embedded financial services from a mobility provider (45.1%), followed by adults between the ages of 35 and 44 (38.1%), and finally, younger persons between the ages of 18 and 24 (36.9%).
Chloe Mayenobe, chief growth officer at Solaris, observed: “The study results tie in with our previous market research and confirm our experience in the field. Interest from mobility providers for embedded finance has risen noticeably. We have already been able to close exciting partnerships in Europe. For many of these brands, understanding how to best leverage their ecosystem and build a profitable business case is a challenge. That is why this time we also looked at the question of whether certain brand attributes are promising and examined individual age groups.”
The survey finds that 73% of consumers are more likely to purchase from a retailer if a loyalty programme is associated with their card, suggesting that there is room for expansion in embedded financing initiatives with payment cards. Direct discounts (69%) and points or promotions (56%) are the critical motivations for consumers’ adoption of a specific payment method.
10% of respondents in Germany and 26% in Italy said they would be willing to use a credit card from a mobility provider.
The paper also examines the development of embedded financial products, including Banking-as-a-Service, the expansion of e-commerce in Europe, and the growing significance of embedded finance’s data-sharing capabilities.
Solaris established a “women’s network” earlier this year to close the gender pay gap in the financial industry.
