Research conducted by Solaris and the Handelsblatt Research Institute analyzes the potential of the most popular mobility providers in Germany, France, Italy and Spain to offer financial services
The embedded finance platform Solaris published a new report on the evolution of embedded finance in Europe. It discovered that over one third of consumers open accounts and apply for financial products with their mobility brands.
The study was conducted in cooperation with the Handelsblatt Research Institute. It has analysed the market potential for the mobility sector in Germany, France, Italy and Spain. The research is based on the data from the top 25 mobility providers in the given regions.
Italy had the highest number of respondents who would utilise embedded finance services from a mobility brand – 61.8%. It is followed by Spain (51.3%), Germany (36.1%), and lastly France (33.3%).
The conversion rate for embedded financial services like checking accounts, credit cards or loans directly correlates with the brand’s perceived security/reliability. Moreover, it appeared consumers were more inclined to use newer digital products and services if they were familiar with a brand.
As for the generations most eager to explore the potential of embedded finance, 45.1% of German respondents between the ages of 25-34 were willing to use such services. They were followed by adults between the ages 35-44 (38.1%), and finally younger adults between 18-24 (36.9%).
Furthermore, the study suggests that there is potential for growth in embedded finance initiatives with payment cards. Namely, it reveals that 73% of consumers prefer buying from retailers which offer a loyalty program connected to their card. The main reasons why consumers choose this specific payment method are due to direct discounts (69%) and to gain points or promotions (56%).