Europe Insights Paytech

Transport Firms Shift Gears: Europeans Ready to Ride with Financial Services

More than a third of European customers are ready to embark on a financial journey with transport companies, including airlines, car manufacturers, train operators, and car associations.

A new study from Solaris, the European embedded finance platform, signals a green light for transport brands, as it highlights a strong correlation between trust in their services and the passengers’ willingness to fuel their financial endeavours.

Italian consumers are the most enthusiastic about using embedded financial services from transport providers, with 61.8 per cent expressing interest in payment cards, accounts, or credit. Among Italian millennials (aged 25 to 34), this number increases to 68.9 per cent. Spain follows as the second-strongest market, with 51.3 per cent of respondents open to using at least one embedded financial product from a transport provider.

In contrast, Germany and France show a lesser inclination to use an account, payment card, or credit product from a transport firm, with 36.1 per cent and 33.3 per cent respectively. However, millennials in these countries are more receptive to the idea.

On the move

The data comes from a Solaris whitepaper titled On the move: The embedded finance opportunity in the mobility sector, supported by Handelsblatt Research Institute and YouGov Deutschland GmbH.

The study also reveals that consumers in Italy and Spain are more likely to use embedded finance products from travel or transport providers because of their willingness to purchase goods and services on credit. For example, 33 per cent of Italians and 22 per cent of Spaniards would consider an embedded loan from Volkswagen Financial Service, while only 13 per cent of Germans and 11 per cent of French respondents would do so.

Credit cards from transport providers, such as Easyjet, AirEuropa and Europcar, also show strong potential in Italy and Spain. This preference aligns with a May 2022 survey by Norisbank, which found that over 75 per cent of respondents prefer using credit cards when travelling. As such, credit cards could play a significant role in embedding a first financial product and increasing revenue for transport providers.

Andrea Ramoino, MD EMI UK & EEA at Solaris, comments: Our study found a high correlation between trust and willingness to try new products from trusted providers in mainland Europe. The higher our respondents rated a transport brand for safety and reliability, the greater their motivation to use a financial product from that brand.

A well-considered embedded finance offering can deepen customer relationships, simplify transactions, and create new revenue streams. But this can’t be a one-way road only benefiting transport companies. It is crucial that customers also receive added value, otherwise they would not accept the products. 

“While our most recent survey looked at mainland European markets, it shines a light on the potential value UK businesses are leaving on the table by not utilising embedded finance within their offering.”


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