Impact of Embedded Finance on Consumer Financial Behaviour in Platform Economies: An Empirical Study

Abstract

Platforms are also used in the emerging era of financial tech, which has grown at a fast pace and spurred the development of embedded finance in platform economy. Embedded finance is a business model in which financial services like Buy Now Pay Later, digital wallets, digital payments and embedded lending are deployed into any non-financial digital offer, and impact consumers' financial behaviour. In this study, we look at how embedded finance affects consumer financial behaviour and its relation to financial decision-making, spending patterns and transaction convenience. This study involves primary data collection using structured questionnaire with the respondents of 150 based on empirical and descriptive data. Data analysis was made through percentage and regression analysis. The results indicate that embedded finance improves the transaction experience, boosts engagement with consumers and positively impacts spending behaviours and purchase decisions. The study findings suggest that embedded finance is a key driver of today's consumer financial behaviors as part of a digital platform ecosystem