Finance
2023 Predictions: The Wild Ride Ahead for Embedded Commerce and Finance
Published by Jessica Weisman-Pitts
Posted on December 13, 2022
5 min readLast updated: February 2, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on December 13, 2022
5 min readLast updated: February 2, 2026
By Greg Cohen, CEO of Fortis
Here are two words of advice for banking and finance professionals as 2022 winds down and we get set to kick off the new year: buckle up. The world is barreling toward a significant shake up in 2023, and the changes we’re likely to see will reverberate across the embedded commerce and finance space.
Already, inflation and economic uncertainty are driving concerns, and we are already seeing pre-emptive actions by firms. Interest rate increases have caused havoc on high-growth, non-profitable businesses, and additional worries include a concern about a drop in discretionary spending across most segments. While we have seen some layoffs already, spending deterioration will trigger earnings misses, incremental workforce adjustments and restructurings.
Industries such as retail and hospitality are poised to bear the brunt while sectors like healthcare and necessary services are probably more insulated, but everyone will be affected to some extent. The economic downturn won’t tell the whole story of 2023 in the embedded commerce and finance space as 2023 will be the year when future winning plays and strategies are implemented.
Entrenched institutional organizations, many of which spent the past few years reacting to fintech innovations, have billions in capital on their balance sheets and are ready to pounce on opportunities. Meanwhile, fintech valuations have been hammered over the past year, shedding half a trillion in valuation, forcing them to retrench and refocus. The status quo won’t hold, and institutional players and fintechs are on a collision course. Here are seven predictions for the year ahead:
As for technology business leaders who are still in scale-up mode, now is the time to prepare for volatility in the year ahead. That means making projects that improve cashflow a priority, refocusing on core competencies and delivering a great customer experience, including through embedded commerce. As Peter Drucker said, “the best way to predict the future is create it.” Streamline, focus and execute.
It’s tough to make predictions, especially about the future. But given the economic fundamentals at play, the massive amounts of cash in the bank at infrastructure companies and equity firms and a market still in need of future experience enhancements, it doesn’t take a psychic to predict a wild ride. It’s time to buckle up.
Embedded commerce refers to the integration of payment processing and financial services directly within a platform or application, allowing users to make purchases without leaving the app.
Fintech, short for financial technology, refers to the use of technology to provide financial services, including banking, investing, and payment processing, often improving efficiency and user experience.
Cash flow is the total amount of money being transferred into and out of a business, especially as it affects liquidity. Positive cash flow indicates that a company has enough funds to meet its obligations.
A recession is an economic decline characterized by a decrease in GDP for two consecutive quarters, leading to reduced consumer spending, business investment, and employment.
Mergers and acquisitions (M&A) are transactions in which the ownership of companies or their operating units are transferred or combined, often to achieve growth or increase market share.
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