Embedded finance is transforming how businesses operate, allowing them to offer banking services directly through their platforms. Imagine handling payments, lending, and insurance without leaving your favorite app. In this article, we’ll dive into what embedded finance is, how it benefits B2B SaaS companies, and how you can start leveraging it today.

Embedded finance refers to the seamless integration of digital banking, payment solutions, and other financial services into non-financial platforms. This allows businesses to enhance their product offerings while generating steady revenue streams. With API integrations, implementing these financial services is quick and easy—no need to build them from scratch.

In this article, we’ll cover:

What Is Embedded Finance

Embedded Finance for B2B SaaS

Use Cases of Embedded Finance In SaaS

Benefits of Embedded Finance

How To Start

 

What Is Embedded Finance

Embedded finance is the integration of financial services such as payments, lending, and insurance into non-financial platforms. It allows businesses to offer these services directly within their apps or websites, creating a seamless experience for users without the need for external tools or banking infrastructure.

Clearing Up What Embedded Finance Isn’t

Embedded finance is often confused with Banking as a Service (BaaS). While BaaS involves licensed banks offering their infrastructure through APIs to non-bank businesses, embedded finance focuses on integrating these financial services into existing products. Think of BaaS as the backend infrastructure (the B2B layer) and embedded finance as the frontend application that users interact with.

 

Embedded Finance for B2B SaaS

According to Boston Consulting Group, 64% of small and medium businesses prefer using platforms with embedded financial services. For SaaS companies, embedded finance offers key benefits:

Stand Out from Competitors: Providing financial services sets your business apart by offering more than just the core product.

New Revenue Streams: Earn from transaction fees, loan interest, or insurance commissions.

Better User Experience: Offering financial services within the platform simplifies the user experience, boosting satisfaction.

Higher Lifetime Value: Financial services increase both revenue and customer loyalty.

Personalized Offers: Use data to offer customized financial products, making the experience more relevant for users.

 

Use Cases of Embedded Finance In SaaS

SaaS companies vary in what they offer, so the financial services they embed need to fit their specific business needs. Here are some common examples:

Embedded Payments: Add payment processing directly into platforms, allowing users to pay without leaving the app. This simplifies operations and creates new revenue streams.

Invoicing and Receivables: Embedded payments for invoicing allow businesses to send invoices and receive payments instantly within the same platform. This streamlines invoicing, improves cash flow, and shortens payment cycles, especially in industries like manufacturing and logistics.

Embedded Lending: Offer loans or credit directly within platforms, enabling customers to access financial products seamlessly. This reduces the cost and complexity of building infrastructure from scratch while speeding up access to credit.

Embedded Insurance: Add insurance directly into the buying process, allowing customers to include coverage while making a purchase. This increases convenience for customers and helps businesses earn more by offering insurance without extra steps.

 

How To Start

To integrate embedded finance into your SaaS platform, follow these steps:

Set Clear Goals: Identify which financial services—such as payments, lending, or insurance—will benefit your users the most. Focus on solving pain points, like slow payments or external banking issues.

Choose Trusted Partners: Partner with licensed banks or fintech companies that offer secure APIs and understand regulations. Ensure they can provide scalable, reliable solutions.

Build Strong Infrastructure: Create a secure digital system capable of handling transactions. Use either in-house solutions or integrate ready-made APIs based on your business needs.

Test with Users: Run beta tests with a small group of users to gather feedback and fix issues before a full launch.

Ensure Compliance and Security: Follow financial regulations and prioritize security. Partnering with experienced providers can help manage risks like fraud or data breaches.

Integrate Embedded Finance With Space Invoices

With Space Invoices, you can integrate embedded finance into your dashboard in under a week. Enable instant payments via QR codes, simplify transactions, and ensure global invoicing and tax compliance. Boost your revenue and stay ahead of the competition by offering more.

For more information on integrating embedded finance into your platform, visit our documentation or contact us.

Additional reading:

• 3 Best White-Label Invoicing APIs for B2B SaaS, Fintech, and Neobank Platforms
• Ask Your Developer: Key Insights for the Build vs Buy Debate in Invoicing API
• Bosnia and Herzegovina Implements VAT on Non-Resident Digital Service Providers