New Embedded Finance opportunities for Shopify…

New Embedded Finance opportunities for Shopify with their move into B2B Ecommerce…

Shopify are no strangers to credit distribution having originated >$3.3bn through Shopify Capital — https://lnkd.in/eR-SQFeq

With the latest push into B2B Ecommerce — https://lnkd.in/e2ST9633 — it would be great to see an extension of their Embedded Credit product range.

Faire offer flexible working capital finance through their ‘net 60 terms’ product — https://lnkd.in/eXkf5_y9 — a brilliant example of a product which should work to improve outcomes for both sides of the transaction.

The colossal advantage for B2B Ecommerce platforms in offering this type of product is the data asset… With detailed knowledge of both the wholesaler’s real time online business model and the retailer’s historic transaction record, they are in a unique position to price risk and extend competitive credit terms.

Alternative lenders should be focussing on partnerships to enable embedded propositions such as the above where there exists a unique data asset, scale distribution opportunity and limited desire to hold balance sheet risk (at least at outset).

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As an aside — It would be great to see Ecommerce platforms offering data driven embedded commercial insurance, with product liability being an obvious benefit for both Shopify and Faire — Especially seeing as they are blogging about it (https://lnkd.in/ez7C3VXx). More to come on this later…