B2B Embedded Finance: Why It’s the Next Fintech Frontier
Let's unpack why this is a high growth sector to watch, how platforms monetize, where adoption is happening, what risks to prepare for. BONUS CONTENT: access our strategic checklist for B2B platforms!
When people think “embedded finance,” they usually picture consumer apps — BNPL at checkout, wallets in e-commerce, or banking features hidden inside ride-hailing apps.
But a much larger and arguably more transformative shift is happening right now: embedded finance is moving into B2B platforms.
This newsletter distills (in ‘quick hit’ format) the key themes from our deep-dive article: Embedded Finance + B2B Platforms: The Next Frontier in Fintech.
Let’s jump in,
William M. (Founder, Director @FinTechtris)
Reading time: ~6 minutes
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🌍 Why B2B Embedded Finance Is Booming
The numbers are staggering.
Embedded B2B payments are projected to reach $2.6 trillion by 2026, and as much as $16 trillion by 2030. For context, that’s larger than the GDP of China.
Why the surge?
Businesses want seamless workflows.
They don’t want to toggle between ERP systems, bank portals, and clunky payment processors. They want finance to happen where they work.
Add to that:
Working-capital constraints push firms toward embedded credit.
Platforms are hungry for new monetization streams.
The fintech API and open banking stack is maturing.
Together, these forces are pushing embedded finance from consumer apps into the very heart of B2B commerce.
💰 How Platforms Monetize Embedded Finance
For platforms, the economics are compelling — but nuanced.
Payments: Platforms often capture 0.5%–2% per transaction.
Lending/Financing: Margins come from spreads or discounting invoices.
Value-add services: Think reconciliation, analytics, or treasury dashboards.
The risk model matters just as much as the revenue model.
Platforms can hold risk themselves, share it with a partner bank, or use hybrid approaches like first-loss guarantees.
One thing is clear: the platforms that align risk appetite, capital structure, and monetization strategy will be the ones to scale sustainably.
🔑 Where Adoption Is Happening Now
B2B embedded finance is not just a projection — it’s already here. Three areas stand out:
Payments + AP/AR
Platforms are embedding seamless payables and receivables tools. Businesses say ERP integration is their #1 need.Lending & Invoice Financing
Credit lines and invoice advances are being offered at the point of transaction. This helps merchants unlock liquidity instantly.Treasury & Liquidity
Real-time cash pooling, virtual accounts, and reconciliation are being embedded into ERP and procurement flows.
Each of these use cases solves a painful problem while unlocking new revenue for platforms.
⚠️ The Hard Parts: Risks & Roadblocks
It’s tempting to think of embedded finance as a “plug-and-play” feature.
The reality: it’s a hard road.
Platforms must wrestle with:
Credit risk: B2B underwriting is messy and complex.
Capital strain: Funding loans or reserves is demanding.
Compliance: Payments, lending, AML/KYC — regulations multiply fast.
Integration pain: Legacy ERPs and batch systems don’t love APIs.
Brand risk: A failed financing product can damage platform trust.
Execution discipline is the difference between a sticky, revenue-generating product and a costly misstep.
🧭 Lessons for Founders and Operators
From the founder’s perspective, the smartest moves are incremental:
Start with one product (payments or AR) before layering credit and treasury.
Partner early, but keep architecture modular so you can own more over time.
Align deeply with sponsor banks on risk-sharing and governance.
Invest in risk infrastructure from day one.
Make the UX seamless — customers should barely notice the “finance” part.
The article includes a 10-point strategy readiness checklist that founders can use as a diagnostic. To access it, click here to read the full article (it’s at the end).
🏦 What Banks Need to Internalize
Banks aren’t bystanders — they’re core players in this new ecosystem.
But to succeed, they must:
Modernize tech stacks (API-first, modular services).
Offer shared-risk models instead of rigid controls.
Embrace white-label and co-branded structures.
Move fast — because if they don’t embed, platforms might bypass them entirely.
The best banks will act as enablers, not gatekeepers, providing infrastructure that platforms can build on.
🔮 What’s Coming Next
Embedded finance in B2B is still early — but the next 1–3 years could reshape the industry. Expect to see:
AI-powered underwriting for faster, smarter credit.
Composable financial primitives like liquidity APIs and cash pooling.
Cross-border embedded finance powering global trade flows.
ESG-linked credit that ties financing to sustainability metrics.
Blockchain-driven settlement rails in trade and treasury.
In other words: payments and credit are just the beginning.
🚀 Why This Matters — and What To Do
The upside is massive: new revenue streams, stickier user relationships, competitive differentiation.
But success takes foresight, discipline, and alignment with the right partners.
If your company is:
A SaaS platform or ERP considering embedded payments,
A marketplace thinking about credit,
Or a bank deciding whether to enable or compete —
…then now is the time to act.
For a deeper dive (and the full strategic checklist), read our original article here:
👉 Embedded Finance + B2B Platforms: The Next Frontier in Fintech
And if you’re building, evaluating, or scaling an embedded finance program, we’d love to work with you! We have hands-on experience advising fintechs, platforms, and bank teams who want to win in this space.
Reply to this newsletter to reach out directly, OR fill out our inquiry form today!
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