Embedded finance expectations have shifted dramatically over the years. In the past, platforms could stand out from the competition simply by offering embedded finance capabilities — like payment acceptance or access to working capital.
But in 2026, merchants aren’t asking whether or not their business software offers financial tools. They’re asking whether those tools feel like an organic extension of the platform experience, making running their day-to-day operations easier.
The 2026 Merchant Insider Report, based on responses from more than 1,500 businesses across Australia, the UK and the US, makes one thing clear for platform providers —today’s businesses want embedded finance features that are practical and straight forward.
While the payments industry tends to focus on innovation, merchants are more focused on capabilities that minimize their workload; solutions that improve visibility, reduce redundant work and help them move money with less friction.
Lead with function, not flash
When it comes to embedded finance, businesses aren’t looking for the flashiest feature on the market. Instead, they’re looking for tools that solve everyday problems inside the platform they’ve centered their business around.
This trend shows up definitively in the data. When asked which financial capabilities would make software users consider changing platforms, merchants prioritized practical tools over “flashy” ones:
- 83% said cash-flow visibility and forecasting
- 82% said the ability to accept all payment types
- 81% said the ability to manage outgoing payments
- 81% said faster access to funds within 24 hours
- 79% said integrated lending or capital tools
The message for software providers is straightforward. Businesses are interested in embedded finance because it helps them reduce friction in their workflows, make informed decisions and run their business more efficiently.
This isn’t uncharted territory for merchants
Merchants aren’t starting from scratch with embedded finance. In many cases, they already use these tools in day-to-day operations and know what value they expect from them.
The report found that businesses already use a wide range of embedded finance capabilities, including:
- 81% use fraud detection and risk management
- 80% use AR/AP tools
- 78% use banking and treasury services
- 77% use financial reporting and analytics
- 69% use capital management
This trend creates a unique opportunity for software platforms. The challenge isn't convincing businesses that embedded finance has value. It’s making sure your platform delivers those capabilities in a way that feels intuitive, reliable and aligned with how their business already works.
The real differentiator is execution
One of the clearest findings in the report is the shift in competitive advantage. Offering embedded financial tools may have helped platforms stand out in the past, but businesses have now experienced some version of these capabilities elsewhere.
What businesses increasingly notice is whether those capabilities reduce friction or create more of it. They’re paying particularly close attention to whether payment types are fully supported, if cash flow is easy to track, outgoing payments can be managed without extra systems and if funds arrive quickly enough to support day-to-day operations.
The 2026 Merchant Insider Report adds another important layer here. Even when embedded finance capabilities are available, adoption is not always seamless. Businesses still face barriers like:
- 35% say they are still learning how to use embedded finance solutions effectively
- 29% cite integration challenges
- 23% say they have not received enough guidance
For software providers, that means prioritizing clear onboarding, stronger integration support and more practical guidance for merchants to turn embedded finance capabilities into true value.
How software providers can get ahead
If embedded finance has become table stakes, execution is now the competitive edge. Businesses aren’t comparing platforms by available features. They’re comparing them based on how well those features perform under real operational pressure.
The strongest embedded finance strategy in 2026 may not be the one with the most cutting-edge feature set. It may, in fact, be the one that helps companies work faster, see their business more clearly, access funds sooner and manage financial tasks in fewer steps.
See the embedded finance findings for yourself
The 2026 Merchant Insider Report explores how businesses are rethinking payments, embedded finance and platform experience across Australia, the UK and the US. The report dives deeper into the financial capabilities businesses value most, the barriers slowing adoption and the signals software providers can use to make smarter product and partnership decisions.
