Chapter 4
Don’t stop at payments
Chapter 4
Don’t stop at payments
Chapter 4
Don’t stop at payments
Chapter 4
Don’t stop at payments
"When companies embed payment solutions into their core products, it creates a powerful flywheel effect: delivering more value to customers, increasing average revenue per user (ARPU), and strengthening customer retention."
Eric Kaplan
Investor, Bessemer Venture Partners
Most platforms treat embedded finance as a future consideration: something to revisit once payments are stable and the team has bandwidth. The platforms best positioned to capture the opportunity start planning early. They treat payments as the foundation, not the destination.
But market size alone isn't what makes embedded finance compelling. It's the compounding effect of each product added on top of a payments foundation. For example, capital becomes possible because you have transaction data. Marketplace opportunities emerge because you have customer density. Each expansion reinforces the last.
"When companies embed payment solutions into their core products, it creates a powerful flywheel effect: delivering more value to customers, increasing average revenue per user (ARPU), and strengthening customer retention."
Eric Kaplan
Investor, Bessemer Venture Partners
Most platforms treat embedded finance as a future consideration: something to revisit once payments are stable and the team has bandwidth. The platforms best positioned to capture the opportunity start planning early. They treat payments as the foundation, not the destination.
But market size alone isn't what makes embedded finance compelling. It's the compounding effect of each product added on top of a payments foundation. For example, capital becomes possible because you have transaction data. Marketplace opportunities emerge because you have customer density. Each expansion reinforces the last.
"When companies embed payment solutions into their core products, it creates a powerful flywheel effect: delivering more value to customers, increasing average revenue per user (ARPU), and strengthening customer retention."
Eric Kaplan
Investor, Bessemer Venture Partners
Most platforms treat embedded finance as a future consideration: something to revisit once payments are stable and the team has bandwidth. The platforms best positioned to capture the opportunity start planning early. They treat payments as the foundation, not the destination.
But market size alone isn't what makes embedded finance compelling. It's the compounding effect of each product added on top of a payments foundation. For example, capital becomes possible because you have transaction data. Marketplace opportunities emerge because you have customer density. Each expansion reinforces the last.
"When companies embed payment solutions into their core products, it creates a powerful flywheel effect: delivering more value to customers, increasing average revenue per user (ARPU), and strengthening customer retention."
Eric Kaplan
Investor, Bessemer Venture Partners
Most platforms treat embedded finance as a future consideration: something to revisit once payments are stable and the team has bandwidth. The platforms best positioned to capture the opportunity start planning early. They treat payments as the foundation, not the destination.
But market size alone isn't what makes embedded finance compelling. It's the compounding effect of each product added on top of a payments foundation. For example, capital becomes possible because you have transaction data. Marketplace opportunities emerge because you have customer density. Each expansion reinforces the last.
4.1
Payments is the foundation, not the ceiling
Embedded payments and embedded finance are related but not interchangeable. Payments come first. Not as a formality, but because the data, trust, and operational infrastructure that payments generate are what make financial products viable.
A platform that hasn't gotten payments right isn't ready to offer capital, accounts, or cards.
Embedded financial products deliver value in three distinct ways. They:
Unlock revenue streams beyond payment processing.
Speed up payments adoption by deepening the platform relationship.
Become the core product in verticals where payments aren’t the primary need.
4.1
Payments is the foundation, not the ceiling
Embedded payments and embedded finance are related but not interchangeable. Payments come first. Not as a formality, but because the data, trust, and operational infrastructure that payments generate are what make financial products viable.
A platform that hasn't gotten payments right isn't ready to offer capital, accounts, or cards.
Embedded financial products deliver value in three distinct ways. They:
Unlock revenue streams beyond payment processing.
Speed up payments adoption by deepening the platform relationship.
Become the core product in verticals where payments aren’t the primary need.
4.1
Payments is the foundation, not the ceiling
Embedded payments and embedded finance are related but not interchangeable. Payments come first. Not as a formality, but because the data, trust, and operational infrastructure that payments generate are what make financial products viable.
A platform that hasn't gotten payments right isn't ready to offer capital, accounts, or cards.
Embedded financial products deliver value in three distinct ways. They:
Unlock revenue streams beyond payment processing.
Speed up payments adoption by deepening the platform relationship.
Become the core product in verticals where payments aren’t the primary need.
4.1
Payments is the foundation, not the ceiling
Embedded payments and embedded finance are related but not interchangeable. Payments come first. Not as a formality, but because the data, trust, and operational infrastructure that payments generate are what make financial products viable.
A platform that hasn't gotten payments right isn't ready to offer capital, accounts, or cards.
Embedded financial products deliver value in three distinct ways. They:
Unlock revenue streams beyond payment processing.
Speed up payments adoption by deepening the platform relationship.
Become the core product in verticals where payments aren’t the primary need.
Build your embedded finance roadmap
Build your embedded finance roadmap
action step
Business loans / financing / capital
Helps SMBs fund growth without turning to external lenders — globally, 94% say access to liquidity would help them grow*
SMBs have established enough payment history on your platform to reveal their revenue cycles and seasonal patterns
Business loans / financing / capital
Helps SMBs fund growth without turning to external lenders — globally, 94% say access to liquidity would help them grow*
SMBs have established enough payment history on your platform to reveal their revenue cycles and seasonal patterns
Business loans / financing / capital
Helps SMBs fund growth without turning to external lenders — globally, 94% say access to liquidity would help them grow*
SMBs have established enough payment history on your platform to reveal their revenue cycles and seasonal patterns
Business bank accounts
Lets SMBs manage their finances in the same platform they use to run their business
SMBs are regularly moving money in and out of your platform and a separate bank account creates unnecessary friction
Business bank accounts
Lets SMBs manage their finances in the same platform they use to run their business
SMBs are regularly moving money in and out of your platform and a separate bank account creates unnecessary friction
Business bank accounts
Lets SMBs manage their finances in the same platform they use to run their business
SMBs are regularly moving money in and out of your platform and a separate bank account creates unnecessary friction
Business cards / issuing
Gives SMBs direct access to funds via a branded card, keeping spend and reconciliation inside your platform
SMBs are ready to consolidate business spending inside your platform alongside their payments and payouts
Business cards / issuing
Gives SMBs direct access to funds via a branded card, keeping spend and reconciliation inside your platform
SMBs are ready to consolidate business spending inside your platform alongside their payments and payouts
Business cards / issuing
Gives SMBs direct access to funds via a branded card, keeping spend and reconciliation inside your platform
SMBs are ready to consolidate business spending inside your platform alongside their payments and payouts
*Source: Based on a global SMB embedded finance survey conducted by Adyen and BCG.
"At first, we partnered with existing payment providers to fill a gap. But as we innovated, we saw the limitations. Our customers needed real-time insights into payouts, refunds, and chargebacks. By taking payments in-house, we gave them visibility into their business. Today, we're expanding further — adding pay-later financing, better vendor management, and embedded financial tools."
Vamshi Reddy
Sr. VP + GM Payments, Zenoti
"At first, we partnered with existing payment providers to fill a gap. But as we innovated, we saw the limitations. Our customers needed real-time insights into payouts, refunds, and chargebacks. By taking payments in-house, we gave them visibility into their business. Today, we're expanding further — adding pay-later financing, better vendor management, and embedded financial tools."
Vamshi Reddy
Sr. VP + GM Payments, Zenoti
"At first, we partnered with existing payment providers to fill a gap. But as we innovated, we saw the limitations. Our customers needed real-time insights into payouts, refunds, and chargebacks. By taking payments in-house, we gave them visibility into their business. Today, we're expanding further — adding pay-later financing, better vendor management, and embedded financial tools."
Vamshi Reddy
Sr. VP + GM Payments, Zenoti
"At first, we partnered with existing payment providers to fill a gap. But as we innovated, we saw the limitations. Our customers needed real-time insights into payouts, refunds, and chargebacks. By taking payments in-house, we gave them visibility into their business. Today, we're expanding further — adding pay-later financing, better vendor management, and embedded financial tools."
Vamshi Reddy
Sr. VP + GM Payments, Zenoti
4.2
Payment data is an asset no competitor can replicate
For platforms with enough of it, transaction data becomes the foundation for something bigger: a marketplace that connects the SMBs on your platform with the customers they serve.
Fresha built this out deliberately. Starting as business software for salons and spas, the platform used embedded payments to create a consumer-facing marketplace where clients can discover, book, and pay for wellness experiences anywhere in the world. The payments infrastructure came first. The marketplace followed.
“Payments have traditionally been seen as a utility and a lowest-sum game. But it's actually one of the biggest value drivers for our customers and business.”
Chris Rich
VP of Financial Services, ROLLER
Slice took a different path to the same insight. By bringing payment processing in-house for over 15k independent pizzerias across the US, Slice gave small family-owned businesses access to the same tools and data that major pizza chains use to compete. Embedded payments wasn't the end state. It was the infrastructure that made everything else possible.
The pattern holds across verticals. ROLLER built it for modern attraction businesses. WebConnex for nonprofits. And Dripos for coffee shops.
The opportunity is consistent: payment volume opens doors that software alone can't.
4.2
Payment data is an asset no competitor can replicate
For platforms with enough of it, transaction data becomes the foundation for something bigger: a marketplace that connects the SMBs on your platform with the customers they serve.
Fresha built this out deliberately. Starting as business software for salons and spas, the platform used embedded payments to create a consumer-facing marketplace where clients can discover, book, and pay for wellness experiences anywhere in the world. The payments infrastructure came first. The marketplace followed.
“Payments have traditionally been seen as a utility and a lowest-sum game. But it's actually one of the biggest value drivers for our customers and business.”
Chris Rich
VP of Financial Services, ROLLER
Slice took a different path to the same insight. By bringing payment processing in-house for over 15k independent pizzerias across the US, Slice gave small family-owned businesses access to the same tools and data that major pizza chains use to compete. Embedded payments wasn't the end state. It was the infrastructure that made everything else possible.
The pattern holds across verticals. ROLLER built it for modern attraction businesses. WebConnex for nonprofits. And Dripos for coffee shops.
The opportunity is consistent: payment volume opens doors that software alone can't.
4.2
Payment data is an asset no competitor can replicate
For platforms with enough of it, transaction data becomes the foundation for something bigger: a marketplace that connects the SMBs on your platform with the customers they serve.
Fresha built this out deliberately. Starting as business software for salons and spas, the platform used embedded payments to create a consumer-facing marketplace where clients can discover, book, and pay for wellness experiences anywhere in the world. The payments infrastructure came first. The marketplace followed.
“Payments have traditionally been seen as a utility and a lowest-sum game. But it's actually one of the biggest value drivers for our customers and business.”
Chris Rich
VP of Financial Services, ROLLER
Slice took a different path to the same insight. By bringing payment processing in-house for over 15k independent pizzerias across the US, Slice gave small family-owned businesses access to the same tools and data that major pizza chains use to compete. Embedded payments wasn't the end state. It was the infrastructure that made everything else possible.
The pattern holds across verticals. ROLLER built it for modern attraction businesses. WebConnex for nonprofits. And Dripos for coffee shops.
The opportunity is consistent: payment volume opens doors that software alone can't.
4.2
Payment data is an asset no competitor can replicate
For platforms with enough of it, transaction data becomes the foundation for something bigger: a marketplace that connects the SMBs on your platform with the customers they serve.
Fresha built this out deliberately. Starting as business software for salons and spas, the platform used embedded payments to create a consumer-facing marketplace where clients can discover, book, and pay for wellness experiences anywhere in the world. The payments infrastructure came first. The marketplace followed.
“Payments have traditionally been seen as a utility and a lowest-sum game. But it's actually one of the biggest value drivers for our customers and business.”
Chris Rich
VP of Financial Services, ROLLER
Slice took a different path to the same insight. By bringing payment processing in-house for over 15k independent pizzerias across the US, Slice gave small family-owned businesses access to the same tools and data that major pizza chains use to compete. Embedded payments wasn't the end state. It was the infrastructure that made everything else possible.
The pattern holds across verticals. ROLLER built it for modern attraction businesses. WebConnex for nonprofits. And Dripos for coffee shops.
The opportunity is consistent: payment volume opens doors that software alone can't.