About the Episode
In this episode of Corralling the Chaos, join Angela Alea, President & CRO of LASSO, and Casey Kipfer, CFO of JustiFi, as they explore the transformative power of embedded payments in event management. Discover how these solutions streamline operations, enhance security and compliance, and open new revenue streams for event businesses. Whether you’re in the FinTech space or managing events, this episode is packed with valuable takeaways that can help you stay ahead in a competitive landscape.
Meet Your Speakers
– Angela Alea: President & CRO of LASSO, Host of Corralling the Chaos
– Casey Kipfer: CFO of JustiFi
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Overview
- Introduction to embedded payments and JustiFi
- Differences between an embedded payment platform and a payment processor
- The competitive landscape of the FinTech space
- Importance of security and compliance in payment processing
- Underwriting process in payment processing
- Future of embedded financial services
Takeaways
Takeaway 1: Embedded payments are a game-changer for businesses, offering efficiency and automation.
The episode highlights the benefits of embedded payments for businesses, asserting that these solutions offer efficiency and automation. According to Casey Kipfer from JustiFi, embedded solutions are entirely within the vertical SaaS platform where businesses operate daily. He said, “By embedding those different tasks or operations into that flow, it makes it a lot more efficient for people.” Kipfer went on to explain that an embedded solution streamlines operations and makes it easier for businesses to manage their transactions.
He further elaborated, “It’s much harder to do that if you have, say, a separate invoicing tool, a separate payment tool, a separate accounting system and so on and so forth. We’re really looking to streamline those operations together, us and the vertical SaaS platform.” Kipfer emphasized that the more contextual the solution, the better it is for everyone involved.
Takeaway 2: Security and compliance are paramount in embedded payment solutions.
Security and compliance were notably highlighted in the conversation, with both speakers emphasizing their importance in the payment processing landscape. Kipfer explained, “If you are processing payments, you either need to be an expert or you need to work with a company that brings that to the table.” He went on to add that managing PCI scope is critically important for a vertical platform, and that JustiFi is PCI level one compliant, the highest level of compliance.
“When you’re working with OPM (Other People’s Money), then every single step of that flow is critically important,” he said, referring to the processing, batching, and payout of transactions as well as providing real-time, accurate reporting. He concluded, “If you are not taking every step into consideration at the same kind of level, you end up with some pretty heated phone calls and emails and other experiences that are really not that fun for anybody involved.”
Takeaway 3: Embedded financial solutions offer new revenue streams and opportunities for businesses.
The speakers discussed the potential of embedded financial solutions to provide new revenue streams for businesses. Kipfer mentioned that embedded solutions can do more than handle payments – they can also offer relevant financial products to businesses, such as insurance or lending options.
“It’s not that all of these products are right for every customer all of the time, but what we do find is that when they are more niche, when they are products that are tailored for that specific customer, then the value… is very high,” Kipfer observed. He highlighted the importance of providing products that solve a business’s challenges at the right time.
“We want to underwrite that merchant based on what they expect to do from a payments perspective,” Kipfer said, explaining JustiFi’s unique approach to underwriting. The idea is to reduce the risk of payout interruptions, ensuring that businesses can secure their cash flow without unforeseen complications. Kipfer’s perspective underlines the potential of embedded solutions to enhance a company’s operations while also boosting its financial security and growth.
Insights surfaced
1. Embedded payments provide efficiency and automation for businesses, streamlining operations by integrating tasks into the workflow of a vertical SaaS platform.
2. The trend of larger businesses leveraging vertical SaaS platforms is growing, meaning transaction sizes are increasing and security is becoming more important.
3. Embedded payments enhance the client experience, speed up cash flow, minimize the risk of financial transactions, and create new revenue streams for businesses.
4. PCI compliance and thorough underwriting are critical for secure and efficient payment processing.
5. The future of embedded financial services includes insurance, lending, and “buy now, pay later” options, providing more comprehensive solutions for businesses.
