Chapter 1
Value is how you win
Chapter 1
Value is how you win
Chapter 1
Value is how you win
Chapter 1
Value is how you win
“As one customer put it: ‘Toast is, in essence, free’ — because the value it creates far outweighs the cost."
Molly Donaher
SVP + GM Payments, Toast
As a vertical software company, your platform has one thing no standalone payment processor can match: a deep understanding of your customers' businesses.
That advantage doesn't sell itself. Most SMBs weigh payment options on price alone, which means they're comparing your offering against traditional providers on the wrong basis entirely. The real cost of a cheaper alternative rarely shows up on the invoice: integration gaps, limited support, and hardware that doesn’t fit the workflow.
Winning on value means making the full picture visible before your customers make the comparison themselves. This chapter covers how to build that value narrative and make it specific enough to remember.
“As one customer put it: ‘Toast is, in essence, free’ — because the value it creates far outweighs the cost."
Molly Donaher
SVP + GM Payments, Toast
As a vertical software company, your platform has one thing no standalone payment processor can match: a deep understanding of your customers' businesses.
That advantage doesn't sell itself. Most SMBs weigh payment options on price alone, which means they're comparing your offering against traditional providers on the wrong basis entirely. The real cost of a cheaper alternative rarely shows up on the invoice: integration gaps, limited support, and hardware that doesn’t fit the workflow.
Winning on value means making the full picture visible before your customers make the comparison themselves. This chapter covers how to build that value narrative and make it specific enough to remember.
“As one customer put it: ‘Toast is, in essence, free’ — because the value it creates far outweighs the cost."
Molly Donaher
SVP + GM Payments, Toast
As a vertical software company, your platform has one thing no standalone payment processor can match: a deep understanding of your customers' businesses.
That advantage doesn't sell itself. Most SMBs weigh payment options on price alone, which means they're comparing your offering against traditional providers on the wrong basis entirely. The real cost of a cheaper alternative rarely shows up on the invoice: integration gaps, limited support, and hardware that doesn’t fit the workflow.
Winning on value means making the full picture visible before your customers make the comparison themselves. This chapter covers how to build that value narrative and make it specific enough to remember.
“As one customer put it: ‘Toast is, in essence, free’ — because the value it creates far outweighs the cost."
Molly Donaher
SVP + GM Payments, Toast
As a vertical software company, your platform has one thing no standalone payment processor can match: a deep understanding of your customers' businesses.
That advantage doesn't sell itself. Most SMBs weigh payment options on price alone, which means they're comparing your offering against traditional providers on the wrong basis entirely. The real cost of a cheaper alternative rarely shows up on the invoice: integration gaps, limited support, and hardware that doesn’t fit the workflow.
Winning on value means making the full picture visible before your customers make the comparison themselves. This chapter covers how to build that value narrative and make it specific enough to remember.
1.1
Know the business behind the payment
Standalone processors provide payments. Your platform understands the business behind them.
The platforms that convert that insight into revenue treat embedded payments as a deeply researched product, not a bundled feature. Start with one question: how does money move through your customers' businesses?
A spa managing membership billing has different cash flow pressures than a contractor chasing unpaid invoices. Those nuances matter. The more specific your payment offering, the harder it is to compare on price alone.
This isn't just a product insight. Your commercial teams need it too. It informs how you market, how you sell, and how quickly undecided SMBs see enough value to make the switch.
The same customer intelligence that sharpens your payments product then becomes the foundation for something bigger: business loans, accounts, and cards. Each addition raises the value of your platform and makes it harder to leave.
1.1
Know the business behind the payment
Standalone processors provide payments. Your platform understands the business behind them.
The platforms that convert that insight into revenue treat embedded payments as a deeply researched product, not a bundled feature. Start with one question: how does money move through your customers' businesses?
A spa managing membership billing has different cash flow pressures than a contractor chasing unpaid invoices. Those nuances matter. The more specific your payment offering, the harder it is to compare on price alone.
This isn't just a product insight. Your commercial teams need it too. It informs how you market, how you sell, and how quickly undecided SMBs see enough value to make the switch.
The same customer intelligence that sharpens your payments product then becomes the foundation for something bigger: business loans, accounts, and cards. Each addition raises the value of your platform and makes it harder to leave.
1.1
Know the business behind the payment
Standalone processors provide payments. Your platform understands the business behind them.
The platforms that convert that insight into revenue treat embedded payments as a deeply researched product, not a bundled feature. Start with one question: how does money move through your customers' businesses?
A spa managing membership billing has different cash flow pressures than a contractor chasing unpaid invoices. Those nuances matter. The more specific your payment offering, the harder it is to compare on price alone.
This isn't just a product insight. Your commercial teams need it too. It informs how you market, how you sell, and how quickly undecided SMBs see enough value to make the switch.
The same customer intelligence that sharpens your payments product then becomes the foundation for something bigger: business loans, accounts, and cards. Each addition raises the value of your platform and makes it harder to leave.
1.1
Know the business behind the payment
Standalone processors provide payments. Your platform understands the business behind them.
The platforms that convert that insight into revenue treat embedded payments as a deeply researched product, not a bundled feature. Start with one question: how does money move through your customers' businesses?
A spa managing membership billing has different cash flow pressures than a contractor chasing unpaid invoices. Those nuances matter. The more specific your payment offering, the harder it is to compare on price alone.
This isn't just a product insight. Your commercial teams need it too. It informs how you market, how you sell, and how quickly undecided SMBs see enough value to make the switch.
The same customer intelligence that sharpens your payments product then becomes the foundation for something bigger: business loans, accounts, and cards. Each addition raises the value of your platform and makes it harder to leave.
Build a continuous intelligence loop
Build a continuous intelligence loop
action step
Where to look
WHAT TO LOOK FOR
Platform data
Payments friction:
Transaction patterns
Decline rates
Payout timing complaints
Reconciliation support tickets
Customer service and support tickets
Unfiltered payment signals:
Payment processing issues
Onboarding and activation friction
Reconciliation and reporting
Pricing and fee confusion
Competitor mentions
Ride-alongs and site visits
How payments actually work in practice:
Checkout flow bottlenecks
Staff workarounds
Hardware pain points
Process breakdowns
Win/loss analysis
Why customers keep their legacy processor:
Switching objections
Pricing perceptions
Feature gaps
Relationship dependencies
Competitor invoices
What your customers are actually paying:
Hidden fees
Rate structures
Charges that don't appear in headline pricing
Why do SMBs across regions choose payments from their platform?
Data set: Overall
48%
better terminal functionality
37%
more flexible payment options
33%
better customer support
32%
higher transaction approval rates
Why do SMBs across regions choose payments from their platform?
Data set: Overall
48%
better terminal functionality
37%
more flexible payment options
33%
better customer support
32%
higher transaction approval rates
Why do SMBs across regions choose payments from their platform?
Data set: Overall
48%
better terminal functionality
37%
more flexible payment options
33%
better customer support
32%
higher transaction approval rates
Why do SMBs across regions choose payments from their platform?
Data set: Overall
48%
better terminal functionality
37%
more flexible payment options
33%
better customer support
32%
higher transaction approval rates
“When we first embedded payments, we focused on technology: offering different payment methods and integrating them seamlessly. But we didn’t fully appreciate our customers’ biggest challenge: cash flow management. If we had prioritized cash flow solutions earlier, we would’ve been even more indispensable."
Vamshi Reddy
Sr. VP + GM Payments, Zenoti
“When we first embedded payments, we focused on technology: offering different payment methods and integrating them seamlessly. But we didn’t fully appreciate our customers’ biggest challenge: cash flow management. If we had prioritized cash flow solutions earlier, we would’ve been even more indispensable."
Vamshi Reddy
Sr. VP + GM Payments, Zenoti
“When we first embedded payments, we focused on technology: offering different payment methods and integrating them seamlessly. But we didn’t fully appreciate our customers’ biggest challenge: cash flow management. If we had prioritized cash flow solutions earlier, we would’ve been even more indispensable."
Vamshi Reddy
Sr. VP + GM Payments, Zenoti
“When we first embedded payments, we focused on technology: offering different payment methods and integrating them seamlessly. But we didn’t fully appreciate our customers’ biggest challenge: cash flow management. If we had prioritized cash flow solutions earlier, we would’ve been even more indispensable."
Vamshi Reddy
Sr. VP + GM Payments, Zenoti
Don't overlook the terminal
Terminal functionality is the top reason SMBs choose payments from their platform. That makes POS hardware key.
SMBs know what they want: convenience, flexible payment options, and a better customer experience. If you serve SMBs with in-store checkout, that's a precise brief. Build to it.
1.2
Create your value case
You've done the work of understanding what your customers actually need. Now comes the harder part: turning it into messaging that lands.
This is a different exercise than discovery. Product and commercial teams should work through it together. The goal is to build a value case that resonates with SMBs who haven't adopted yet, not just those already convinced.
Your vertical expertise is the differentiator. The table below is how you put it to work.
1.2
Create your value case
You've done the work of understanding what your customers actually need. Now comes the harder part: turning it into messaging that lands.
This is a different exercise than discovery. Product and commercial teams should work through it together. The goal is to build a value case that resonates with SMBs who haven't adopted yet, not just those already convinced.
Your vertical expertise is the differentiator. The table below is how you put it to work.
1.2
Create your value case
You've done the work of understanding what your customers actually need. Now comes the harder part: turning it into messaging that lands.
This is a different exercise than discovery. Product and commercial teams should work through it together. The goal is to build a value case that resonates with SMBs who haven't adopted yet, not just those already convinced.
Your vertical expertise is the differentiator. The table below is how you put it to work.
1.2
Create your value case
You've done the work of understanding what your customers actually need. Now comes the harder part: turning it into messaging that lands.
This is a different exercise than discovery. Product and commercial teams should work through it together. The goal is to build a value case that resonates with SMBs who haven't adopted yet, not just those already convinced.
Your vertical expertise is the differentiator. The table below is how you put it to work.
Turn pain points into proof points
Turn pain points into proof points
action step
WHAT SMBS WANT
HOW EMBEDDED PAYMENTS DELIVER
Cash flow reliability
Faster payouts reduce reliance on external financing
Easier operations
Integrated payments remove manual reconciliation and automate compliance
Pricing transparency
Clear, upfront fee structures for predictable, explainable costs
Better customer experience
Native payments built for specific industry use cases improve checkout conversion and reduce fraud
Growth opportunities
Embedded finance products like capital and business accounts help SMBs expand without external lenders
Trustworthy partnership
One relationship for software and payments means faster resolution and a single source of truth
Security and compliance
Includes KYC, AML, MATCH list checks, PCI, and PSD2
How do SMBs across regions select a platform payments provider?
Data set: Overall
30%
Recommendation from network
27%
Offered by the software platform I already use
18%
Online search
17%
Contacted by a sales representative
How do SMBs across regions select a platform payments provider?
Data set: Overall
30%
Recommendation from network
27%
Offered by the software platform I already use
18%
Online search
17%
Contacted by a sales representative
How do SMBs across regions select a platform payments provider?
Data set: Overall
30%
Recommendation from network
27%
Offered by the software platform I already use
18%
Online search
17%
Contacted by a sales representative
How do SMBs across regions select a platform payments provider?
Data set: Overall
30%
Recommendation from network
27%
Offered by the software platform I already use
18%
Online search
17%
Contacted by a sales representative
1.3
One size fits none
No two verticals share the same payment problems. A spa's no-show policy,
a medical practice's claims cycle, and a contractor's outstanding invoices are all payment challenges that require different solutions.
The platforms that win on value understand this, and build offerings that reflect how money actually moves through their customers' businesses. Here’s how it plays out across four verticals.
1.3
One size fits none
No two verticals share the same payment problems. A spa's no-show policy,
a medical practice's claims cycle, and a contractor's outstanding invoices are all payment challenges that require different solutions.
The platforms that win on value understand this, and build offerings that reflect how money actually moves through their customers' businesses. Here’s how it plays out across four verticals.
1.3
One size fits none
No two verticals share the same payment problems. A spa's no-show policy,
a medical practice's claims cycle, and a contractor's outstanding invoices are all payment challenges that require different solutions.
The platforms that win on value understand this, and build offerings that reflect how money actually moves through their customers' businesses. Here’s how it plays out across four verticals.
1.3
One size fits none
No two verticals share the same payment problems. A spa's no-show policy,
a medical practice's claims cycle, and a contractor's outstanding invoices are all payment challenges that require different solutions.
The platforms that win on value understand this, and build offerings that reflect how money actually moves through their customers' businesses. Here’s how it plays out across four verticals.
Hospitality
Property management systems, reservations systems, and payment processors weren't built to talk to each other. When they don't, the cost shows up in nighttime reconciliation that runs long, reporting errors that surface at the worst time, and stored card credentials that expire mid-stay.
Embedded payments brings it all into one place:
Tokenization to keep card credentials current
PCI compliance and secure payment links
Guest payment data that informs loyalty and personalization
“Without exception, every single customer is having a great experience with RMS Pay, whether it’s time savings from nighttime reconciliation, an increase in acceptance rate, or reduction of fraud."
Adam Seskis
CEO, RMS
Hospitality
Property management systems, reservations systems, and payment processors weren't built to talk to each other. When they don't, the cost shows up in nighttime reconciliation that runs long, reporting errors that surface at the worst time, and stored card credentials that expire mid-stay.
Embedded payments brings it all into one place:
Tokenization to keep card credentials current
PCI compliance and secure payment links
Guest payment data that informs loyalty and personalization
“Without exception, every single customer is having a great experience with RMS Pay, whether it’s time savings from nighttime reconciliation, an increase in acceptance rate, or reduction of fraud."
Adam Seskis
CEO, RMS
Hospitality
Property management systems, reservations systems, and payment processors weren't built to talk to each other. When they don't, the cost shows up in nighttime reconciliation that runs long, reporting errors that surface at the worst time, and stored card credentials that expire mid-stay.
Embedded payments brings it all into one place:
Tokenization to keep card credentials current
PCI compliance and secure payment links
Guest payment data that informs loyalty and personalization
“Without exception, every single customer is having a great experience with RMS Pay, whether it’s time savings from nighttime reconciliation, an increase in acceptance rate, or reduction of fraud."
Adam Seskis
CEO, RMS
Hospitality
Property management systems, reservations systems, and payment processors weren't built to talk to each other. When they don't, the cost shows up in nighttime reconciliation that runs long, reporting errors that surface at the worst time, and stored card credentials that expire mid-stay.
Embedded payments brings it all into one place:
Tokenization to keep card credentials current
PCI compliance and secure payment links
Guest payment data that informs loyalty and personalization
“Without exception, every single customer is having a great experience with RMS Pay, whether it’s time savings from nighttime reconciliation, an increase in acceptance rate, or reduction of fraud."
Adam Seskis
CEO, RMS
Healthcare
Claims, billing, and patient payments operate in separate systems. The cost shows up in denied claims, manual rework by practice staff, and revenue that sits uncollected for weeks after a visit. According to our research, 1 in 4 practices in the US spend 11+ hours every week on payment-related administrative tasks.
Embedded payments fixes that, with an immediate impact:
Automated error checks before submission reduce denials and rework
HIPAA and PCI compliance built into the payment flow
Flexible patient payment options that speed up collections
“Payments that used to take two weeks, now arrive in two or three days. Our providers have noticed the difference.”
Donna Ramadan
VP of Revenue Cycle & Compliance, Great Lakes Dental Partners [Rectangle Health customer]
Healthcare
Claims, billing, and patient payments operate in separate systems. The cost shows up in denied claims, manual rework by practice staff, and revenue that sits uncollected for weeks after a visit. According to our research, 1 in 4 practices in the US spend 11+ hours every week on payment-related administrative tasks.
Embedded payments fixes that, with an immediate impact:
Automated error checks before submission reduce denials and rework
HIPAA and PCI compliance built into the payment flow
Flexible patient payment options that speed up collections
“Payments that used to take two weeks, now arrive in two or three days. Our providers have noticed the difference.”
Donna Ramadan
VP of Revenue Cycle & Compliance, Great Lakes Dental Partners [Rectangle Health customer]
Healthcare
Claims, billing, and patient payments operate in separate systems. The cost shows up in denied claims, manual rework by practice staff, and revenue that sits uncollected for weeks after a visit. According to our research, 1 in 4 practices in the US spend 11+ hours every week on payment-related administrative tasks.
Embedded payments fixes that, with an immediate impact:
Automated error checks before submission reduce denials and rework
HIPAA and PCI compliance built into the payment flow
Flexible patient payment options that speed up collections
“Payments that used to take two weeks, now arrive in two or three days. Our providers have noticed the difference.”
Donna Ramadan
VP of Revenue Cycle & Compliance, Great Lakes Dental Partners [Rectangle Health customer]
Healthcare
Claims, billing, and patient payments operate in separate systems. The cost shows up in denied claims, manual rework by practice staff, and revenue that sits uncollected for weeks after a visit. According to our research, 1 in 4 practices in the US spend 11+ hours every week on payment-related administrative tasks.
Embedded payments fixes that, with an immediate impact:
Automated error checks before submission reduce denials and rework
HIPAA and PCI compliance built into the payment flow
Flexible patient payment options that speed up collections
“Payments that used to take two weeks, now arrive in two or three days. Our providers have noticed the difference.”
Donna Ramadan
VP of Revenue Cycle & Compliance, Great Lakes Dental Partners [Rectangle Health customer]
Professional services
Project management, invoicing, and payment collection rarely live in the same place. Small business owners fill the gap manually, chasing outstanding invoices, reconciling receivables, and absorbing cash flow delays that compound into credit dependence. The longer the invoice-to-cash cycle runs, the harder it is to take on the next job.
With embedded payments, you bring it all inside your platform:
Automated payment collection tied to project milestones
Real-time visibility into outstanding receivables
Working capital products underwritten by platform payment data
“It creates a virtuous cycle. The merchant gets paid, the job gets scheduled, and the system keeps running. It’s a seamless experience, and that’s a huge part of our value proposition.”
Joshua Shultz
VP of Payments, Teamfront
Professional services
Project management, invoicing, and payment collection rarely live in the same place. Small business owners fill the gap manually, chasing outstanding invoices, reconciling receivables, and absorbing cash flow delays that compound into credit dependence. The longer the invoice-to-cash cycle runs, the harder it is to take on the next job.
With embedded payments, you bring it all inside your platform:
Automated payment collection tied to project milestones
Real-time visibility into outstanding receivables
Working capital products underwritten by platform payment data
“It creates a virtuous cycle. The merchant gets paid, the job gets scheduled, and the system keeps running. It’s a seamless experience, and that’s a huge part of our value proposition.”
Joshua Shultz
VP of Payments, Teamfront
Professional services
Project management, invoicing, and payment collection rarely live in the same place. Small business owners fill the gap manually, chasing outstanding invoices, reconciling receivables, and absorbing cash flow delays that compound into credit dependence. The longer the invoice-to-cash cycle runs, the harder it is to take on the next job.
With embedded payments, you bring it all inside your platform:
Automated payment collection tied to project milestones
Real-time visibility into outstanding receivables
Working capital products underwritten by platform payment data
“It creates a virtuous cycle. The merchant gets paid, the job gets scheduled, and the system keeps running. It’s a seamless experience, and that’s a huge part of our value proposition.”
Joshua Shultz
VP of Payments, Teamfront
Professional services
Project management, invoicing, and payment collection rarely live in the same place. Small business owners fill the gap manually, chasing outstanding invoices, reconciling receivables, and absorbing cash flow delays that compound into credit dependence. The longer the invoice-to-cash cycle runs, the harder it is to take on the next job.
With embedded payments, you bring it all inside your platform:
Automated payment collection tied to project milestones
Real-time visibility into outstanding receivables
Working capital products underwritten by platform payment data
“It creates a virtuous cycle. The merchant gets paid, the job gets scheduled, and the system keeps running. It’s a seamless experience, and that’s a huge part of our value proposition.”
Joshua Shultz
VP of Payments, Teamfront
Beauty and wellness
Booking, payments, and staff compensation run on different systems in most salons and spas. The cost shows up in no-shows, commission splits done by hand, and membership billing managed outside the core platform.
Embedded payments puts it all in one place, and the results compound:
Deposit-at-booking and no-show fee logic tied to the schedule
Automated tip and commission splits at the point of sale
Membership and subscription billing that runs without manual intervention
“I don't have to wonder whether a client's going to come or not because they've already confirmed and paid the deposit. And at the end of the day, I don't have to spend time checking the numbers. It's always accurate."
Ursula Moore
Director and Owner of Bond Hair Salon, [Fresha customer]
Beauty and wellness
Booking, payments, and staff compensation run on different systems in most salons and spas. The cost shows up in no-shows, commission splits done by hand, and membership billing managed outside the core platform.
Embedded payments puts it all in one place, and the results compound:
Deposit-at-booking and no-show fee logic tied to the schedule
Automated tip and commission splits at the point of sale
Membership and subscription billing that runs without manual intervention
“I don't have to wonder whether a client's going to come or not because they've already confirmed and paid the deposit. And at the end of the day, I don't have to spend time checking the numbers. It's always accurate."
Ursula Moore
Director and Owner of Bond Hair Salon, [Fresha customer]
Beauty and wellness
Booking, payments, and staff compensation run on different systems in most salons and spas. The cost shows up in no-shows, commission splits done by hand, and membership billing managed outside the core platform.
Embedded payments puts it all in one place, and the results compound:
Deposit-at-booking and no-show fee logic tied to the schedule
Automated tip and commission splits at the point of sale
Membership and subscription billing that runs without manual intervention
“I don't have to wonder whether a client's going to come or not because they've already confirmed and paid the deposit. And at the end of the day, I don't have to spend time checking the numbers. It's always accurate."
Ursula Moore
Director and Owner of Bond Hair Salon, [Fresha customer]
Beauty and wellness
Booking, payments, and staff compensation run on different systems in most salons and spas. The cost shows up in no-shows, commission splits done by hand, and membership billing managed outside the core platform.
Embedded payments puts it all in one place, and the results compound:
Deposit-at-booking and no-show fee logic tied to the schedule
Automated tip and commission splits at the point of sale
Membership and subscription billing that runs without manual intervention