Embedded Finance Becomes a Strategic Asset for B2B Platforms
For business-to-business (B2B) platforms, embedded finance is no longer a peripheral feature — it has evolved into a central driver of revenue, customer loyalty, and operational efficiency. As digital expectations rise and customer demands become more complex, platforms are increasingly turning to financial integration as a differentiator.
A recent study conducted by PYMNTS Intelligence in collaboration with Marqeta reveals that leading B2B platforms are shifting from simply adding new financial tools to refining and optimizing existing ones, such as digital wallets, payment rails, and payout systems. This strategic pivot reflects a maturing understanding of how embedded finance can enhance the overall ecosystem.
Large Platforms Reap the Most Rewards
Data from the report shows a marked disparity between large and small platforms in terms of adoption and returns. Two-thirds of companies generating over $1 billion annually reported a direct increase in revenue as a result of embedded finance integration. All of these large firms also noted improved customer experiences stemming from these tools.
By contrast, smaller platforms are lagging behind. One in four smaller companies has yet to implement a single embedded finance capability. While many of these firms plan to introduce payment functionality within the next two years, the delay could impact their competitiveness in a rapidly evolving market.
Focus Shifts to Optimization Over Expansion
Rather than continuously rolling out new features, many platforms are now emphasizing the refinement of existing financial tools. This includes a focus on digital wallets, real-time payments, and efficient payout systems. The goal is to ensure seamless integration and operational excellence, rather than increasing the number of standalone features.
This approach reflects a broader shift in how platforms view embedded finance — not as a checklist of features, but as a cohesive strategy that requires cross-functional coordination, robust risk management, and regulatory compliance.
Embedded Finance Reshapes Platform Economics
The integration of financial tools directly into platform workflows is altering traditional revenue models. According to the PYMNTS Intelligence report, embedded finance contributes to:
- Higher transaction conversion rates
- Lower customer acquisition costs through improved user experiences
- Increased customer lifetime value by embedding financial functionality into core services
This fundamentally changes how platforms calculate their economics, from cost of acquisition to long-term profitability. Financial tools are no longer an afterthought — they are core to how platforms attract, serve, and retain customers.
Strategic Integration Drives ROI
Platform scale plays a critical role in the success of embedded finance strategies. Larger platforms that have already integrated these capabilities are seeing compounding returns as their systems mature. For mid-tier platforms, the report suggests that doubling down on existing capabilities — rather than expanding into new ones — may offer the best path to strong ROI.
Success is determined not by the quantity of financial features, but by how well they are integrated into the platform’s ecosystem. Platforms that prioritize seamless user experiences, data accessibility, and regulatory robustness are better positioned to scale quickly and efficiently.
Operational Excellence Is Key to Growth
To harness the full potential of embedded finance, platforms must focus on operational excellence. This includes developing real-time data capabilities, implementing strong risk controls, and ensuring smooth cross-functional collaboration across departments. Platforms that succeed in these areas experience:
- Faster speed-to-market for new features
- Streamlined internal processes and reduced inefficiencies
- Stronger relationships with partners and vendors
Ultimately, embedded finance is only as effective as the infrastructure supporting it.
Industry Insights Reveal a Market in Transition
The PYMNTS Intelligence report, based on interviews with 30 heads of payment at B2B platforms across the U.S., highlights a market undergoing significant transformation. Participants ranged from firms already leveraging advanced financial tools like co-branded cards and lending products to those just beginning their embedded finance journey.
All participants acknowledged the importance of embedded finance, with many citing it as a defining competitive edge in the current digital economy. Whether improving regulatory compliance, streamlining operations, or enhancing customer experience, embedded finance has become a cornerstone of strategic planning for modern B2B platforms.
The Road Ahead
As the embedded finance landscape matures, the divide between leaders and laggards will continue to grow. Platforms that are proactive in refining their financial capabilities and aligning them with customer needs will be better positioned to thrive.
For smaller platforms, the path forward lies in focusing on integration quality over feature quantity. By learning from the successes of larger firms and prioritizing operational excellence, even modest platforms can unlock significant value from embedded finance.
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.