Embedded finance is reshaping SaaS. Here’s what platforms need to do next

By Ian Hillis, Head of Growth and GM, Embedded Finance

Embedded finance has become one of the most talked-about opportunities in the software space—and for good reason. Having spent my career at the intersection of software-led payments and financial services, I’ve seen firsthand how transformative it can be when platforms bring financial experiences directly into the workflows their customers already rely on.

Today, the conversation around embedded finance isn’t just theoretical. It’s real, it’s happening now, and it’s reshaping how software platforms create value. I recently had the chance to sit down with my colleague, Whitney Ganibegovic, senior sales executive, to unpack where the market is heading and what platforms need to know as they consider their next steps.

Why embedded finance, and why now?

Ask 10 people to define embedded finance, and you’ll probably get 15 different answers. For me, it’s simple: embedding financial experiences directly inside the software where SMBs are already running their business.

Think of a restaurant management platform offering business bank accounts. Or a field services platform offering working capital. Financial tools delivered in context.

So why has embedded finance surged to the forefront in recent years? Three trends come to mind:

1. The growth and verticalization of SaaS
   
   Cloud migration opened the door for software companies to specialize—deeply. We moved from broad “restaurant software” to distinct segments like quick-service, fine dining, bar management, and beyond. The same happened across home services, healthcare, professional services, and more.
2. SMB adoption of vertical software
   
   Small businesses are now choosing software that speaks their language. Adoption of vertical-specific solutions has grown from 34% in 2018 to 64% in 2024. With that adoption comes trust—platforms have become the backbone of daily operations, rich with transactional, customer, and workflow data.
3. The digitalization of financial services
   
   Banks want this data. Software platforms have this data. And SMBs increasingly prefer streamlined, contextual financial experiences over fragmented banking relationships.
   
   Combine those three forces, and you get fertile ground for embedded finance to thrive.

What products work best—and why platforms care

As Whitney explained, embedded finance usually starts with three core products: capital (working capital / lending), accounts, and charge or spend cards. These tools consistently fuel platform growth in three major ways:

1. Loyalty and retention
   
   When financial experiences blend into daily workflows, they create sticky behaviors. The platform becomes the “everything platform”—a Swiss Army knife for running the business.
2. Revenue expansion
   
   Embedded finance can multiply monetization 2–5x per customer. Lending is a standout example. Merchants who take a capital offer often reinvest in growth—and that fuels payments volume, too. We see a 20% increase in payments volume within 6–9 months after a merchant accepts a Working Capital offer.
3. Speed to value
   
   The embedded finance market is growing rapidly. Platforms that move early have a competitive differentiator.
   
   Platforms that wait, risk becoming commoditized. Whitney shared one of my favorite real-world examples:
   
   A restaurant software provider offered working capital; the merchant used it to buy a food truck. Within three months, they had a second revenue stream, more events, better marketing—and the platform saw increased payments volume. That's the power of embedded finance done right.

What platforms need to consider before jumping in

There’s enormous upside, but embedded finance is not “just another feature.” It introduces real operational considerations across four domains:

1. Operational bandwidth
   
   Who owns capital strategy? Who supports bank accounts? Who trains sales teams? Who handles escalations?
2. Regulatory risk
   
   Financial products bring responsibility. How will you manage compliance? Who handles risk reviews? How will you work with sponsor banks?
3. Technology investment
   
   Financial services integrations aren’t “set it and forget it.” They require: multiple integrations, ongoing reconciliation, maintenance, and experience alignment with your core product.
4. Go-to-market readiness
   
   Even the best financial tools fail without a strong adoption plan. Do you know how to pitch working capital or embedded banking? How will you measure impact? All of this adds up quickly—which is why many platforms proceed cautiously.

A more practical path: Built to launch

This is where Whitney’s perspective shines. Most platforms simply can’t hire and train full teams of embedded finance experts—and they shouldn’t have to. They should focus on what they do best: building incredible software.

That’s why we built our ready-to-launch embedded finance solution at Worldpay for Platforms.

With it, platforms can access:

• Pre-built components
• White-labeled customer support
• Go-to-market playbooks
• Risk and compliance management
• Fast, single-sprint integrations

Platforms can start small, scale as they learn, and deliver meaningful financial experiences to merchants without the operational burden of going it alone.

So… when should platforms make the move?

Whitney’s answer: “Yesterday, if not today.”

And she’s right.

Software budgets are rising. Merchant expectations are rising even faster. Platforms that embrace embedded finance now will define their category. Those that wait may find themselves scrambling to catch up to competitors who moved sooner.

From the Worldpay for Platforms side, our mission is simple: help software platforms power the possible. Embedded finance is one of the strongest pathways to becoming the everything platform your customers rely on.

If you're exploring embedded finance, I’d encourage you to download our latest guide and connect with our team. We can help you find the right starting point and scale your vision as adoption grows.