Every new financial service added to software platforms powers efficiency and unlocks competitive advantage. Today, embedded finance is driving hypergrowth through payments, lending, bank accounts, cards, insurance, and more. The result is software platforms that customers don’t want to leave, and revenue curves that keep accelerating.
This blog covers all the must-know points about embedded finance. For a deeper dive, check out our eBook, The complete guide to embedded finance.
The complete guide to embedded finance
How software platforms are driving retention, stickiness, and rapid growth by embedding payments and financial experiences.
Why embedded finance matters now
Embedded finance has rapidly evolved from desirable to indispensable, becoming a foundation for growth, efficiency, and loyalty. Why? Because delivering these seamless, integrated financial experiences makes a platform essential to its users, driving habit-forming engagement that builds retention. For any software platform aiming to stay relevant and create lasting value for customers, embedded finance is no longer a nice-to-have—it’s a must-have.
- Failing to offer integrated financial experiences raises the risk of being left behind in an increasingly competitive market, with two-thirds of SMBs willing to switch software providers if expectations aren't met.
- Having access to embedded finance is now considered critical to operations by 90% of businesses.
- Offering multiple financial services within a unified platform could attract the 76% of SMBs willing to pay extra for these services.
What is embedded finance?
In a world where businesses expect all-in-one convenience, embedded finance enables software platforms to serve up financial experiences to customers directly within a familiar user experience. Much more than a single feature, it’s a complete ecosystem of solutions where each service adds new value to businesses and creates fresh revenue streams for software companies.
The building blocks of embedded finance:
- Payments: Enabling instant transactions within software platforms, payments are the gateway to embedded finance.
- Lending: Providing access to credit or financing directly inside business tools.
- Insurance: Offering tailored insurance products at the point of need.
- Investments: Facilitating investment opportunities without leaving the platform.
- Business banking accounts and cards: Delivering core banking capabilities, empowering businesses to manage funds, issue cards, and handle expenses seamlessly.
What’s in it for software platforms?
- Competitive advantage: Turning convenience into a competitive edge by owning the experience end-to-end.
- Customer retention: Becoming indispensable to customers, making switching unthinkable.
- Increased revenue: Opening up 40%+ more revenue per product built.
What’s in it for businesses?
- Rapid funding: Gaining faster access to credit to help with cash flow.
- Simplify operations: Cutting overhead and unlocking reinvestment.
- Growth enablement: Making growth at scale possible through innovative financial solutions.
How software platforms can win
Embedding financial services isn’t just about keeping up—it’s about pulling ahead. By integrating the right solutions, software platforms can turn convenience into loyalty and everyday transactions into lasting growth.
- Customer loyalty rises when platforms become all-in-one. When businesses can easily access operations and finances in one place, they’re far less likely to switch. That stickiness translates into higher retention and stronger advocacy, proven by the fact that 76% of businesses are willing to pay a premium for a one-stop shop across all their financial needs.
- Revenue expands as financial touchpoints multiply. Each new embedded service, from payments to investments to lending, can unlock 2-5x more revenue per user, fostering deeper, habit-forming engagement and increasing lifetime value.
- Growth accelerates with pre-built financial components. Modern, ready-to-launch components and simple integration enable the rapid rollout of new services, supporting faster innovation and a stronger competitive edge. It’s why 72% of executives say software innovation is essential for staying competitive.
The bottom line
Embedded finance has shifted from intriguing to invaluable. The winners will be software platforms that act now, embed financial experiences seamlessly, and partner with experts who can simplify the complexity.
Get the full story on embedded finance
For an in-depth look at how software companies can harness embedded finance to drive retention, loyalty, and hypergrowth, download Worldpay for Platforms’ latest eBook, The complete guide to embedded finance today.
The complete guide to embedded finance
How software platforms are driving retention, stickiness, and rapid growth by embedding payments and financial experiences.