The evolution of payments: From utility to growth engine

The embedded finance sector is experiencing transformative growth, with innovative solutions redefining customer experiences and unlocking new revenue streams. This week, we explore how embedded payments are revolutionising industries, B2B payment systems are advancing towards agility, and SaaS expansion strategies are reshaping markets globally.

1. Embedded payments as a strategic asset

Embedded payments are no longer just a utility. A recent EY-Parthenon survey reveals that businesses leveraging these solutions can drive unprecedented growth. While the volume of payments through embedded channels is expected to hit $6.5 trillion by 2025, 70% of platforms still undervalue payments' potential. Companies that strategically integrate payments see significant improvements in customer lifetime value and retention, showcasing how this shift is becoming a revenue-driving opportunity.

2. Beyond embedded vs. Integrated payments

The debate between embedded and integrated payments highlights a critical focus: seamless customer experiences. Embedded payments, projected to grow at a 23% CAGR from 2021 to 2026, are reshaping how transactions are processed. Businesses adopting developer-focused packages to implement these solutions are leading the charge in efficiency and customer satisfaction.

3. Agility in B2B payments

Bank of America 's Virtual Payables Direct introduces a hybrid solution that combines virtual cards with direct bank transfers, addressing cash flow and supplier enablement challenges. As B2B payment volumes expand, this approach simplifies integration with legacy systems, accelerating the adoption of innovative payment cycles globally.

4. Export finance as a catalyst for international growth

UK Export Finance is supporting small businesses with £8.8 billion in loans and guarantees, fostering international trade. Targeting underrepresented communities, UKEF's efforts help businesses secure contracts and scale globally. With initiatives like the General Export Facility, small firms can access flexible funding, promoting inclusive economic growth.

As embedded finance continues to bridge gaps between technology and customer experience, businesses that embrace innovation will lead the future. Whether it's embedded payments redefining user experiences or export finance unlocking global potential, the opportunities for growth are immense.

Featured articles in this week's newsletter:

1. How embedded payments can transform a utility into a growth driver - Parthenon-EY
2. The real question behind embedded vs. integrated payments: Creating seamless transactions - Payments Dive
3. In B2B Payments, It Takes Two to Create Value - PYMNTS
4. How export finance is taking businesses from local to global - Business Insider