Your Customers Are Already Using Fintech. The Question Is Whether You're Getting Paid For It.

A B2B SaaS CEO told me something last month that's been stuck in my head:

"Our customers spend $47 million annually on payment processing for transactions that happen because of our platform. We see exactly zero dollars of that."

He wasn't complaining. He genuinely hadn't realized the revenue sitting on the table.

His platform connects enterprise buyers with specialized suppliers. Every month, $47 million in payments flow through external processors—Stripe, PayPal, wire transfers, ACH—completely outside his ecosystem.

When I asked why they didn't offer integrated payments, his answer was refreshingly honest: "We build project management software. We're not a bank."

Here's the thing: you don't need to be a bank. You need to be a platform that understands its value chain.

The Embedded Finance Blindspot

Most SaaS and platform companies are leaving 15-40% of their potential revenue on the table because they've defined their business too narrowly.

You're not "just" a:

• Marketplace connecting buyers and sellers

• Workflow tool managing business processes

• Vertical SaaS platform for an industry

• B2B platform coordinating transactions

You're the layer where money already wants to change hands. The question is whether you're facilitating that—or watching it happen elsewhere.

According to Bain & Company, embedded finance revenue is projected to hit $230 billion by 2025, with 88% of that going to non-financial companies that embedded financial services into their core platforms.

Translation: The winners aren't traditional banks. They're software companies that realized financial services are a feature, not a separate business.

What "Embedded Finance" Actually Means (Without the Buzzwords)

Strip away the fintech jargon, and embedded finance is simple: offering financial services at the exact moment your customers need them, without leaving your platform.

This looks like:

Embedded Payments Instead of "Invoice sent, please pay via wire transfer," it's "Click here to pay, we'll handle it." You capture 0.5-2.5% of transaction value instead of 0%.

Embedded Lending Your customer needs to finance a $50K purchase through your platform. Instead of sending them to their bank (where 60% never complete the application), you offer instant approval for working capital at point of need.

Embedded Banking
Your gig economy platform or supplier network needs to pay out earnings. Instead of 2-5 day ACH delays, you offer instant deposit to platform-branded accounts. Users stay in your ecosystem, you earn interchange fees.

Embedded Insurance High-value transactions need protection. Instead of customers researching insurance separately (and maybe not buying it), you offer one-click coverage at checkout. You earn commission on every policy.

Embedded Expense Management B2B platforms issue virtual cards for platform spending. You control the payment rails, capture transaction data, and earn from every swipe.

None of this requires you to become a financial institution. It requires you to partner with one and white-label their capabilities.

The Revenue Model Most Platforms Miss

Here's the math that changes board conversations:

Let's say you run a B2B marketplace doing $500M in gross merchandise value (GMV) annually.

Current state (no embedded finance):

• Revenue: SaaS subscription fees, maybe 5-15% take rate = $25M-$75M

• Payment processing: Handled externally, you earn $0

• Working capital needs: Customers go to banks, you earn $0

• Insurance for transactions: Bought separately, you earn $0

With embedded finance:

• Payment processing: 2% of GMV = $10M annually

• Working capital lending: 40% of customers use it, average $25K loan, 8% origination fee = $4M annually

• Insurance attachment: 15% attach rate, 20% commission on premiums = $1.5M annually

• Corporate cards for buyers: Interchange revenue on platform spend = $2M annually

New revenue: $17.5M with minimal incremental cost.

That's not replacing your core business. That's adding 23-70% to your revenue from financial services your customers were already buying somewhere else.

Why Now? Why the Urgency?

Three forces are converging that make embedded finance a strategic imperative, not a nice-to-have:

1. Banking-as-a-Service Infrastructure Just Got Real

Five years ago, embedding financial services meant becoming a regulated entity or navigating nightmare partnership deals with banks.

Today, platforms like Stripe Treasury, Unit, Column, and Synctera offer API-first banking infrastructure. You can launch embedded bank accounts, card programs, or lending in weeks—not years.

The technical barrier collapsed. If you're not moving, your competitors are.

2. Customer Expectations Changed Permanently

Users don't want to leave platforms to complete financial tasks. They've been trained by Amazon (one-click checkout), Shopify (capital offers at point of need), and Uber (seamless in-app payments).

If your B2B platform still sends invoices via email and waits for wire transfers, you're offering a 2015 experience in 2025.

3. Your Margins Are Under Pressure

SaaS multiples have compressed. Investors want profitability, not just growth. Pure subscription models face churn and price sensitivity.

Embedded finance offers:

• Higher LTV: Customers who use your financial services churn 40-60% less (they've integrated treasury operations)

• New revenue streams: Diversification beyond subscriptions

• Data moats: Transaction data makes your platform stickier and more valuable

• Margin expansion: Financial services revenue often carries 60-80% gross margins

You're not pivoting to fintech. You're defending margins with services customers already need.

The Readiness Gap

Here's what I see when I audit platforms for embedded finance readiness:

90% of companies think about this wrong. They ask: "Should we become a fintech company?"

Wrong question.

Right question: "Where in our user journey does money need to move, and are we making that easier or harder?"

When you frame it that way, embedded finance isn't a pivot. It's product-market fit for the financial layer of your business.

The Prerequisites Nobody Talks About

Before you can embed finance successfully, you need:

1. Transaction Visibility Do you know when, how much, and between whom money is changing hands on your platform? If payments happen outside your system, you're blind.

2. Trust Infrastructure
Financial services require KYC/AML compliance, fraud monitoring, and regulatory adherence. Your platform needs identity verification and risk management before processing money.

3. Unit Economics That Work Embedded payments at 2% margin only work if your transaction volumes support the overhead. Run the math before you build.

4. Customer Journey Integration Financial services bolted onto your platform as an afterthought fail. They need to be native to the workflow where users already expect them.

5. Regulatory Clarity You need to know which regulations apply, who holds liability, and how partner agreements distribute compliance responsibility.

Most platforms have 1-2 of these. Almost none have all five. That's the readiness gap.

The Strategic Choices

You have three paths to embedded finance. Choose based on your maturity, resources, and ambition:

Path 1: Outsource Everything (Fastest)

Partner with a BaaS platform (Stripe, Unit, etc.) that handles regulatory compliance, banking relationships, and infrastructure. You white-label their services.

Pros: Launch in 3-6 months, minimal technical lift, compliance handled
Cons: Lower margins (you split revenue), less customization, dependent on partner roadmaps
Best for: Early-stage platforms testing demand, or companies that want speed over control

Path 2: Hybrid Partnership (Balanced)

Partner with BaaS providers for regulated functions, but build your own UX, underwriting logic, and data infrastructure.

Pros: Better margins, customized products, control over user experience
Cons: 6-12 month timeline, requires more technical and compliance resources
Best for: Growth-stage platforms with product/eng capacity and clear financial services strategy

Path 3: Build Your Own Stack (Most Control)

Become a regulated entity or acquire one. Build proprietary infrastructure.

Pros: Maximum margins, full control, differentiated offerings
Cons: 18-36 month timeline, regulatory burden, massive capital and talent requirements
Best for: Late-stage platforms where embedded finance is core to strategy (think Shopify, Toast)

Most platforms should start with Path 1 or 2. Path 3 only makes sense when embedded finance becomes 30%+ of revenue.

The Questions Your Board Should Ask

If you run a platform with meaningful transaction volume, these questions separate strategic thinking from missed opportunity:

On current state:

• How much money changes hands because of our platform annually?

• Where do those transactions happen today, and who captures the economics?

• What percentage of our customers need lending, insurance, or faster payments?

On opportunity:

• What would 1-2% of our GMV add to annual revenue?

• Which financial services align with our customers' highest-friction moments?

• What does readiness actually require (infrastructure, compliance, partnerships)?

On risk:

• Are competitors embedding finance, and how does that change competitive dynamics?

• What customer expectations are we not meeting by forcing external financial workflows?

• What's our exposure if payment processors or lenders we rely on change terms?

The Competitive Dynamics Nobody Mentions

Here's the uncomfortable truth: embedded finance creates winner-take-most dynamics.

Once a platform embeds payments, lending, or banking, switching costs skyrocket. You're not just competing on features anymore—you're competing on treasury integration.

A customer who runs their working capital, payments, and corporate cards through your platform isn't leaving for a competitor with "10% better workflow features." The switching cost is too high.

This means:

• First movers build moats. The platform that embeds finance first in a vertical captures disproportionate value.

• Late movers face higher bars. "Me too" embedded finance doesn't win. You need differentiation or better economics.

• Non-movers become features. Platforms that don't own financial rails become distribution for those that do.

The window to act is narrowing. Not because embedded finance is new—it's not. But because your competitors are moving, and customer expectations are shifting.

The Bottom Line

Your platform exists because you solve a valuable problem. Money flows through your ecosystem as a result.

The question is simple: Do you facilitate that value exchange and capture economics, or do you let others monetize the activity you created?

Embedded finance isn't about becoming a bank. It's about recognizing that financial services are a feature layer of any platform where commerce happens.

The platforms winning this transition aren't the ones with the best fintech strategy. They're the ones asking: "Where does friction exist in our user's financial workflow, and can we remove it?"

Because here's what I've learned working with dozens of platforms:

Customers don't want "embedded finance." They want to complete their work without leaving your platform.

If that work includes getting paid, paying others, accessing capital, or protecting transactions—and you make them go elsewhere—you're creating friction and leaving revenue on the table.

The embedded finance opportunity isn't theoretical. It's happening right now in your transaction data.

The question is whether you're going to monetize it, or watch someone else do it for you.

Want to assess whether embedded finance makes sense for your platform? Let's audit your transaction flows and model what revenue you're currently leaving on the table.

Let chat's!

We respect your privacy. Your information will never be shared.