Abstract :

This Study, Titled The Effect Of Embedded Finance On Customer Loyalty In Digital Commerce Platforms, Evaluates Embedded Financial Product Adoption, Cart Abandonment Reduction, Platform Gross Merchandise Value (GMV) Expansion, And Financial Feasibility Of Embedded Financial Services In Digital E-commerce Ecosystems. Digital Commerce Platforms Experience Intense Customer Retention Competition, Where Seamless Checkout Financing And Contextual Credit Options Dictate Customer Loyalty. A Five-year Project Lifecycle (2021-2025) Of An Embedded Finance Integration Platform Is Evaluated Using Capital Budgeting Parameters: Net Present Value (NPV), Internal Rate Of Return (IRR), Payback Period (PBP), And BenefitCost Ratio (BCR). Quantitative Analysis Indicates That Buy Now Pay Later (BNPL) Services Account For 42% And 1-click Embedded Payments Represent 28% Of Total Financial Product Adoption. Deploying Embedded BNPL Reduces Checkout Cart Abandonment Rates To 8.5% Compared To 68.4% Under Traditional Redirected Payment Gateways. Seamless Financial Integration Drives Platform GMV To 14,500 Crores While Raising Customer Repeat Purchase Rates To 78.4%, Expanding Embedded Finance User Penetration To 88.5% And Lifting Net Promoter Score (NPS) To 86 By 2025. The Financial Model Yields A Positive NPV Of 284.5 Crores And An IRR Of 38.6%, Far Exceeding The 10% Discount Hurdle Rate. The Study Concludes That Investing In Embedded Finance APIs Is Highly Viable, Boosting Customer Retention, Order Conversion Rates, And Digital Commerce Lifetime Value.

Published:

04-9-2026

Issue:

Vol. 26 No. 9 (2026)

Page Nos:

102-110

Section:

Articles

License:

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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