From eligibility to conversion: the awareness channels that drive embedded lending

At finmid, we see one pattern play out across 30 markets: the platforms whose lending programmes compound over years are the ones that treat distribution as an ongoing discipline, not a one-off launch campaign. The ceiling on financing revenue is set by visibility. Getting an offer in front of the right merchant at the right moment is what turns a launched product into a used one.

Why raising awareness matters for platforms

Financing products are often the one with the highest return on investment (ROI) for platforms. The ceiling on that value is set by how many merchants see the offer in the first place.

There are structural reasons why merchants might not convert on financing offers, even when they qualify and would benefit. Awareness work exists to close those gaps.

1. 1.

   Awareness positions the platform as a financial partner

   While embedded lending is becoming more common, it lacks the long-standing history that banks have. Many merchants have years of muscle memory pointing them to banks when they need capital. The connection between "the platform I use every day" and "the place I can get capital" does not solidify on its own. If the platform does not surface the offer, merchants might go elsewhere or miss financing altogether.

2. 2.

   Awareness connects business needs to financing options

   A merchant who could use capital today is rarely thinking in terms of "getting funding". They are focused on immediate business problems: managing cash flow, buying stock, hiring staff, or planning an expansion. Awareness is what translates a real business need into a financing decision. Without it, the need goes unfilled and the programme delivers less than it could.

3. 3.

   Awareness makes conversion possible

   Most active merchants qualify for financing, but far fewer accept. This gap is rarely about underwriting; the merchants are already eligible. The issue is that the offer does not reach them at the right moment, with enough visibility to be acted on. In practice, this makes awareness the one of the main drivers of conversion.

4. 4.

   Awareness ensures the offer is visible continuously

   65% of merchants accept the offer in the first week after it is sent. Every additional day it goes unseen, the likelihood of conversion drops. Awareness is not a one-off touchpoint. It is about keeping the offer visible until it aligns with a real business need.

Read about the ROI, Gross Merchandise Value uplift and churn reduction you can expect from embedded lending in Forrester: finmid delivered 306% ROI to customers.

Six channels for raising awareness

Based on extending offers to over 150,000 businesses, here are the six most common channels to raise awareness:

1. 1.

   Email

   Email is the one of best channels to raise awareness about a new financing product, especially when it runs as a recurring and event-driven journey rather than a one-off announcement. On top of a recurring monthly email about the available offer, the additional events depend on the platform, but typically include: a merchant becomes eligible for the first time, a seasonal moment, or an offer increases after sustained sales growth and so on. Across our partners, emails consistently produce high open and click-through rates.
   
   We recommend having a recurring email and an email per event with copy tied to the business decision the merchant is making. Keep the language simple, clear and benefit-driven. During the onboarding process, the finmid team shares the best practices for email copies to set you up for a successful start.

2. 2.

   Messaging: SMS and WhatsApp

   SMS and WhatsApp work best as a follow-up, not the first touch point. We suggest using messaging to nudge a merchant who has opened an offer but has not accepted yet or has a renewal available. Without prior context, a message might feel intrusive.
   
   When other follow-ups stall, WhatsApp often gets through because of human touch. WhatsApp messages are usually sent by Account Managers so merchants are more likely to respond. Make sure that the voice Account Managers use is natural, not a marketing template.
   
   Deliverability often determines the success of the SMS channel. Make sure you support sending SMS' to all the countries where your merchants are based.

3. 3.

   In-app placements

   We highly recommend using in-app placements such as banners. It it the highest-intent touchpoint as the merchant is already logged in and in a business mindset. Specific offers prompt action so make sure to promote the exact offer the the merchant is eligible for.

4. 4.

   Physical mail

   Physical mail can help raise awareness to merchants who engage less with digital channels, e.g. do not monitor their emails or digital notifications frequently. It is also a pattern-interrupting way of raising awareness about financing as merchants might not expect to receive post about such offering, making them more curious to open the offer.

5. 5.

   Account Managers

   Account Managers are constantly in touch with merchants and can spot a need for financing before anyone else, making them a very effective channel as merchants trust them. In addition, they can immediately answer any questions merchants might have, something that digital channels often lack.
   
   We recommend providing the Account Manager team with training and materials so they can independently share information about the product. The finmid team supports internal teams with preparations or running the training sessions.

6. 6.

   In-person events

   Whenever you host an in-person event for your merchants, it can be a great opportunity to talk about your financing product. Similarly as with Account Managers, direct conversations during events build trust and give a chance to answer questions immediately to clear up any concerns.
   
   One does not have to stop there. We suggest experimenting with creative physical items to increase awareness and recall such as merchandise dedicated to the product.

Across all six, the same principle holds: the deeper financing is embedded in the platform's own product, the better every channel above it performs. A financing product that is embedded in platform's dashboard will outperform an external redirect.

Read more about the benefits of an embedded solution in Maximum customisation, minimum effort: why iframe is the right starting point for embedding lending.

Which channels to launch first?

So should you launch all six channels at once, and how often should you communicate?

We recommend starting with the foundation: email, in-app placements, and Account Managers. Email is one of the only channels that reaches almost every merchant on the platform. The placements meet a merchant when the intent is the highest. The merchant is already inside the dashboard with nothing else competing for attention. Account Managers are constantly in touch with merchants so it is important for them to know and understand the offering if they see an opportunity to address a merchant's need or answer questions about the product.

Once you have set these three channels up, experiment with the rest. Add channels when there is a specific gap it addresses.

On communication cadence, one email about the available offer per month is the absolute minimum platforms should aim for. More frequent communication across different channels will increase the likelihood that the offer will reach the merchant in the right place at the right moment.

Beyond the launch

At finmid, we make channel work as easy as possible. We share the best practices across each channel during the onboarding process and support responsible teams in designing a successful go-to-market strategy for the product.

Curious to see how embedded lending could work for your platform? Book a demo.