Embedded Finance: How Software Companies Are Rising Above the Competition | Episode 20

It’s no secret that software led payments are taking our digital ecosystem by storm. It’s a buzzword that’s in just about every conversation regarding payments, payfacs and how to optimize the fintech space. But what about embedded finance as a SaaS offering? WorldPay Vice President of Merchant Strategy, Samuel Callen is back on PayFAQ: The Embedded Payments Podcast to follow up on our last episode — and joining him and Host, Bob Butler, is Worldpay Senior Director of Merchant Strategy and Platform GTM, Eric Lerch. 

According to Eric, embedded finance is a very mason offering within the fintech and SaaS ecosystem at large. The concept revolves around software companies extending financial services and products that are not core competencies of theirs to their software users natively, within their own software solutions. It takes the friction out of payment services for software customers in that they no longer must be redirected to another platform to apply for financial services. Eric also explains that embedded finance can include such services as bank accounts, payroll, account reconciliation, insurance and even card issuance. 

Sam drills it down a little more for us by referencing the small-to-midsize business customer journey when it comes to embedded finance. According to him, embedded finance solves one of the main customer pain points for SMBs: the inability to obtain capital. And he drills down even more by specifying the three core products most desired from SMBs.  

Finally, as for the revenue stream this can offer for SaaS companies, Sam goes on to say that the addressable market for SMBs is a 45% market share for embedded finance, with up to a 70% revenue uptick for participating SaaS companies. Tune in to hear more.