Embedded finance – the integration of banking and payment services directly into non-financial platforms – is transforming how small and midsize businesses (SMBs) operate. Analysts project the global embedded finance market to skyrocket from about $146 billion in 2025 to nearly $690 billion by 2030, a compound annual growth rate of over 36%.

This means almost every aspect of traditional business finance will move into the software tools and apps that businesses already use. For SMBs – especially in retail, SaaS, and other service sectors – embedded finance is no longer a “nice-to-have” add-on but a must-have competitive feature. In fact, 91% of SMBs say the capabilities of their software platforms will be key to growth in the coming years.

In this article, we explain what the $690 billion boom in embedded finance means for your business, how integrated payments can lift SMB revenue by 25–50%, why most SMBs will drop vendors that lack embedded finance, and how to choose the right embedded payment solution for your industry.

What the $690 Billion Embedded Finance Boom Means for Your Business?

The embedded finance trend is reshaping SMB technology on a massive scale. The overall market is already substantial and growing explosively. Estimates show the total addressable market for embedded financial services (payments, lending, insurance, etc.) was roughly $185 billion in 2024 – and astonishingly, about 80% of that opportunity is untapped. By 2030, industry forecasts put this market at nearly $690 billion worldwide.

In the US and other markets, that translates to tremendous revenue potential for platforms that add financial features to their products. In practical terms, what was once a side-channel (e.g., standalone payment gateways or lending apps) is now built directly into business software.

For SMBs, the implications are clear: Customer expectations and competitive pressure are rising. A recent study found 91% of SMBs believe platform software capabilities will be key to their growth. Business owners expect smooth, one-stop-shop experiences. Companies in retail, healthcare, logistics, hospitality, and other tight-margin sectors are already feeling the change – embedded finance tools help them avoid payment delays and focus on core work.

This boom also signals new revenue streams for forward-looking SMBs. Embedding financial services turns every transaction into a potential profit center: beyond the product sale itself, businesses can earn fees or interest from lending, card issuing, accounts, or processing volume.

For example, recent research notes that embedded finance can open additional revenue streams for platforms, and the current market size is $185 billion (2024,) with 80% untapped. In other words, the financial side of commerce – payments, credit, and banking features – represents a vast pool of value SMBs can tap into.

Overall, the $690 billion boom underscores a central point: embedded finance is here to stay. SMBs that adopt it gain a strategic edge. In fact, industry experts emphasize that providing embedded finance is a “strategic enabler” of growth.

By integrating payments and financial tools into the business workflow, SMBs can improve conversion rates and customer loyalty – driving real top-line growth. Ignoring this trend, on the other hand, can be costly: studies warn that the cost of neglecting embedded finance is not just lost revenue, but potentially lost customers.

5 Ways SMBs Increase Revenue 25–50% with Integrated Payments

Smart SMBs are already seeing dramatic benefits from embedding payments directly into their platforms. Integrated payments mean customers pay within the same app or portal they use for other tasks, creating a smooth, one-click checkout and unlocking new growth levers.

In fact, one study found that SMBs with well-integrated payment systems can see revenue growth boosts of 25%–50%. Below are five key ways this gain happens:

1. Streamlined Checkout (Faster Sales):

An embedded payment solution lets customers complete purchases instantly without leaving the app or platform. This frictionless flow accelerates checkout and cuts cart abandonment.

Shoppers can pay with saved cards or one-click options, leading to higher conversion rates. (For example, platforms that move from “semi-integrated” to fully embedded payments report a new level of convenience and 97% of SMBs note higher satisfaction with embedded checkouts.) In practice, faster checkouts mean each sales opportunity is more likely to close – directly boosting sales.

2. Back-Office Efficiency and Cost Savings:

Embedded payments also pay off behind the scenes. By unifying payment processing within a single platform, businesses eliminate time-consuming manual steps. Transactions, refunds, and fee reconciliation occur automatically, saving hours of accounting work.

Following this, you get lower processing errors, less staff time spent on finance, and reduced costs. This efficiency means more bandwidth to focus on selling (and less leakage from mistakes), improving profit margins as revenue grows.

3. Insight-Driven Marketing and Upsell Opportunities:

Every transaction in an integrated system generates rich data about customer behavior. SMBs can analyze purchase histories and preferences to craft targeted offers. For instance, if the payment system shows a customer often buys certain items, the platform can suggest complementary products or services at checkout.

These “intelligent” touches encourage customers to spend more. Embedded finance unlocks exactly this kind of data-driven cross-selling.

4. Embedded Financing and Loyalty Programs

Integrated payments also make it easy to offer financing or loyalty rewards at the point of sale. For example, shoppers can be approved for a small business loan or buy-now-pay-later (BNPL) option without leaving the checkout screen. This kind of embedded lending encourages larger purchases, as customers stretch their budget. Indeed, data shows SMBs that accessed embedded financing saw sales grow 25%–50% on average within months.

Similarly, embedding loyalty points or instant rebates into the checkout makes repeat purchases more attractive. By giving customers flexible payment options and rewards within the same platform, SMBs capture more value per customer.

5. Better Customer Experience and Loyalty

In the end, customers simply like embedded payments. A unified, built-in payment process feels safer and smoother, reinforcing trust and brand loyalty. SMB platforms that adopt embedded payments report much higher customer satisfaction – 97% of SMB users surveyed expressed greater satisfaction.

A positive checkout experience encourages repeat business and referrals, which translates into steady recurring revenue. In an era where word-of-mouth and online reviews are vital, that seamless, one-stop payment experience can make or break customer relationships.

Through these five channels – smoother sales, lower costs, more innovative marketing, financing perks, and happier customers – integrated payments can multiply an SMB’s top line. The key is that these benefits are compounded: each payment and financing feature unlocks multiple revenue drivers at once.

Why 65% of SMBs Will Dump Vendors Lacking Embedded Finance

The advantages above explain why so many SMBs are demanding embedded finance from their software vendors – and acting on it if they don’t get it. Recent research found that 65% of SMBs are willing to abandon a software vendor that lacks integrated financial services.

In other words, if your platform only offers core functions (such as inventory management or scheduling) but lacks payments, lending, or real-time tracking, two-thirds of small businesses are likely to switch to a competitor that fills that gap.

Significantly, this churn isn’t driven by price or general dissatisfaction – it’s specifically about missing features. Surveys show SMBs aren’t complaining about costs or support; they’re walking away because their software doesn’t include the financial tools they need. As embedded finance becomes the norm, customers see it as a basic requirement. Studies note that when digital-native features like integrated payments and credit are absent, customers’ willingness to stay drops dramatically. In fact, satisfaction with an embedded finance offering is a top predictor of whether an SMB will stick with a vendor.

This trend puts enormous pressure on software providers. SMBs expect modern platforms to not only handle their daily tasks but also become financial hubs. They want to take payments, manage cash flow, get financing, and track expenses all in one place – exactly where they already enter orders and invoices. Failing to provide those tools means leaving “stickiness” and loyalty on the table. The data is precise: platforms that innovate with embedded financial tools retain and grow their user base, while those that don’t see high churn rates.

For SMB decision-makers, the message is simple: if your software partner isn’t embedding payments and other finance features, they risk being left behind by more advanced competitors.

Choosing the Right Embedded Payment Solution for Your Industry

With embedded finance moving from novelty to necessity, selecting the right provider is crucial. SMBs (or the platforms serving them) should evaluate potential embedded payments partners on several fronts:

• Compliance and Security: Ensure the provider meets industry regulations (PCI DSS for credit cards, GDPR for data privacy, etc.) and has strong security protocols. Robust encryption, tokenization, and fraud-detection tools should be standard. Many fintechs now offer streamlined compliance built in, but always confirm certifications (e.g,. PCI compliance, SOC 2) so you don’t inherit risk.
• Pricing and Fees: Compare the fee structure carefully. Look beyond headline rates to see transaction fees, revenue-sharing splits, setup or monthly charges. Know exactly how much you’ll earn (or pay) on each transaction. Also, understand any hidden costs (chargebacks, compliance fees, etc.). Transparent pricing is vital: you should be able to calculate your margin on a sample sale before committing.
• Payment Methods and Global Reach: Check that the solution supports all payment types you need (credit/debit cards, ACH, mobile wallets, etc.). If you sell internationally or to diverse customers, multi-currency and multi-country support is a must. The best embedded gateways allow you to accept payments from whatever currencies and channels your customers prefer.
• Integration and API Quality: Examine the technical fit. Does the provider offer a well-documented, developer-friendly API or SDK for seamless integration? Providers vary between fully “API-first” and offering pre-built widgets. Determine what your team needs – strong APIs for maximum control, or turnkey components for speed. Also assess customizability. You want a solution that can embed smoothly into your existing workflow and brand experience, with minimal friction.
• Customer Support and Responsibilities: Clarify who handles what, and what support is available. Will your provider offer dedicated technical support and on-demand help for end-users? Understand the roles: who manages merchant onboarding, who handles disputes, and how revenue-sharing reports are audited. For example, if something goes wrong with a payment, will customers contact your company or the payment provider? Ensure there is a clear, reliable support channel to resolve issues quickly.
• Industry Fit: Finally, consider any industry-specific needs. Some verticals have unique requirements (e.g. healthcare platforms may need HIPAA-compliant payments, legal services may require trust-account handling). Look for providers who specialize or offer modules for your sector. For instance, specific embedded finance tools are tailored to retailers, logistics companies, or SaaS billing. An ideal solution understands the nuances of your market and can adapt accordingly.

When you vet providers against these criteria, an SMB can select an embedded payments partner that not only enables faster growth but also protects and empowers the business. A strategic choice of payment solution will help you capture more of that $690 billion market.

Conclusion

The embedded finance wave is upon us, and SMBs stand to gain or lose a great deal depending on how they ride it. With the market for integrated payments and financial services forecast to reach ~$690 billion by 2030, businesses that embed these capabilities can unlock new revenue and efficiencies. We’ve seen that platforms offering native payment processing and other financial tools can boost SMB sales by 25–50%, improve customer loyalty, and reduce overhead. In contrast, research shows two-thirds of SMBs will ditch vendors that don’t offer embedded finance.

In practice, this means that embedding finance isn’t just a “nice extra” – it’s become table stakes for competitiveness. SMB retailers, SaaS providers, and other companies should view embedded payments as a critical investment. Choosing the right solution – with solid compliance, flexible APIs, and transparent costs – will help capture the growth reflected in the $690 billion figure. When customers demand seamless financial services, and when data shows failure to provide them costs revenue and loyalty, the decision is clear: embrace the embedded finance revolution now or risk being left behind.