Embedded finance in B2B has rapidly evolved from a trend into a core growth driver. Once considered the domain of consumer-facing apps, embedded finance in B2B platforms is now unlocking significant value across industries.
From marketplaces and ERP systems to procurement platforms and vertical SaaS tools, B2B operators are increasingly integrating financial services such as payments, lending, insurance, and banking directly into their workflows.
This shift is not merely about adding features. It is about rethinking business models, increasing user stickiness, and monetising core activities in entirely new ways. In this article, we explore how embedded finance works in B2B contexts, why it matters, and how leading platforms are using it to unlock new revenue streams, deepen customer relationships, and shape the future of digital commerce.
What is Embedded Finance in B2B?
Embedded finance refers to the integration of financial services into non-financial platforms or software. Instead of redirecting users to a bank or third-party financial institution, platforms can offer services such as payments, credit, insurance, and accounts directly within their product.
In a B2B setting, this means enabling a business customer to pay an invoice, get financing, or insure a transaction without leaving the digital environment they already use. This could be a procurement portal, an e-commerce marketplace, or a SaaS dashboard.
Core embedded finance B2B use cases for B2B include:
- Integrated payments
- Buy Now, Pay Later (BNPL) for business buyers
- Invoice financing and working capital loans
- Treasury and virtual accounts
- Embedded insurance for transit or trade credit
- Expense cards and spend management
This seamless integration improves user experience, reduces friction, and allows platforms to capture financial margins that would otherwise go to banks or standalone fintech providers.
The Strategic Shift: How Embedded Finance Transforms B2B Platforms
For many B2B platforms, embedded finance marks a strategic shift from offering only software to becoming fintech-enabled ecosystems. Traditionally, these platforms charged SaaS fees or transaction commissions. Embedded finance introduces a new layer of monetisation that can be more lucrative, recurring, and better aligned with user needs.
Key drivers of this shift include:
- Customer demand for convenience and in-platform functionality
- Revenue diversification, as financial margins often exceed those of software
- Increased retention and engagement
- Data advantages that support better underwriting and customer profiling
For example, a B2B marketplace offering invoice financing can not only earn revenue from the loan spread but also remove a barrier to seller growth by solving cash flow gaps.
Embedded Payments: The Foundation Layer
Integrated payments are often the first and most straightforward use case for embedded finance. Rather than sending users to an external gateway or bank transfer tool, platforms can enable payment initiation, reconciliation, and settlement within the product itself.
B2B payments are often more complex than B2C. They can involve invoices, purchase orders, multi-party approvals, long payment terms, and currency conversion. Embedded payments help streamline these challenges.
Examples include:
- B2B marketplaces using escrow or milestone-based payments
- Accounting and ERP platforms enabling invoice payment via ACH or card
- Procurement tools that integrate supplier payouts
By owning the payment flow, platforms can take a percentage of the transaction, improve UX, and gain access to transaction data that fuels future financial products.
Digital Accounts and Treasury Tools
Beyond payments and lending, platforms are embedding financial tools such as digital wallets, virtual bank accounts, and treasury management features. These services help businesses manage funds within the same ecosystem where they operate.
Use cases include:
- Platforms issuing virtual accounts for businesses to manage client funds
- SaaS tools offering sub-accounts for internal cost centers
- Marketplaces providing real-time cash flow dashboards
These capabilities often tie into payment orchestration, reconciliation, and FX management. Offering embedded accounts allows the platform to become a financial operating system, making it harder for customers to switch and enabling monetisation through float or service fees.
Embedded Insurance: Building Trust in Transactions
Insurance is a key part of de-risking B2B transactions. Platforms that enable buyers and sellers to transact, ship goods, or offer services can provide embedded insurance at the point of need.
Examples include:
- Logistics platforms offering shipping insurance
- Wholesale marketplaces providing credit insurance for sellers
- Vertical SaaS tools integrating business or liability insurance
Embedded insurance creates trust, increases conversion, and generates fee-based revenue. The more tailored the insurance to the transaction or industry, the higher its perceived value.
Infrastructure and Partnerships
Most B2B platforms do not directly hold financial licenses. Instead, they partner with infrastructure providers to handle compliance, banking, lending, or insurance services.
Key enablers in the embedded finance space include:
- Stripe, Adyen, and Checkout.com for payments and card issuing
- Unit, Bond, and Railsr for banking-as-a-service
- Mambu and Thought Machine for core banking functionality
- Mondu and Resolve for B2B lending and BNPL
- Qover and Cover Genius for insurance APIs
These partnerships allow platforms to launch embedded finance features without building the stack in-house. The platform focuses on user experience, integration, and monetisation while the partner handles back-end complexity.
Business Models and Monetisation
Embedded finance changes how B2B platforms generate revenue. Rather than charging only for access or usage, platforms can now monetise financial services across several touchpoints.
Common monetisation methods include:
- Transaction fees on payments
- Interest income from lending or revenue sharing with credit providers
- Float income on stored funds or treasury tools
- Commissions or fees from insurance policies
- Premium tiers for access to finance features
Performance metrics also evolve. Platforms track financial product adoption, loan volume, repayment rates, and financial revenue per user. These metrics complement traditional SaaS KPIs such as customer lifetime value and churn rate.
Real-World Embedded Finance B2B Examples
Faire: A wholesale B2B marketplace that provides net terms to buyers and instant payouts to sellers. This supports trust in the platform and increases transaction volumes.
QuickBooks Capital: Offers embedded lending to small businesses based on accounting data. It helps bridge cash gaps without the need to apply externally.
Mirakl: Powers enterprise marketplaces and partners with fintechs to embed payments and financing options for clients and sellers.
BILL: Automates accounts payable and receivable while embedding invoice payments and supplier financing tools.
These platforms are not only enabling transactions. They are becoming financial hubs for their users.
Challenges and Considerations
Embedding financial services introduces regulatory and operational complexity. Platforms need to consider the following:
- Compliance: Financial services are heavily regulated. KYC, AML, data privacy, and licensing all matter.
- Risk: Lending and payments involve fraud risk, default risk, and financial liability.
- UX Design: Financial tools must be intuitive, transparent, and trustworthy.
- Strategic Focus: Platforms must determine whether embedded finance is core or complementary.
Success depends on deep user understanding, strong partnerships, and the ability to manage both product and risk at scale.
The Future of Embedded Finance in B2B
As embedded finance continues to mature, expect to see:
- Greater use of AI for credit underwriting and fraud detection
- Sector-specific financial products tailored to vertical SaaS tools
- Cross-border capabilities through multi-currency wallets and FX tools
- Composable finance stacks where platforms integrate only what they need
- Closer partnerships between fintech and software teams
Embedded finance is shifting from a technical integration to a strategic imperative. Platforms that embrace it are positioning themselves to be the infrastructure layer of their respective industries.
Conclusion
Embedded finance is not a feature. It is a business model transformation. B2B platforms are evolving from transaction enablers into full-stack financial ecosystems. By embedding payments, lending, insurance, and accounts directly into their workflows, these platforms can generate new revenue, improve user retention, and provide more value to their customers.
In the years ahead, the line between software and finance will continue to blur. Those who understand how to blend the two seamlessly will gain a major competitive advantage in the B2B economy.
