What are Embedded Payments? Everything You Need to Know.

If you’ve recently decided to add payments to your core B2B software, you’re bound to come across the term “Embedded Payments” while looking for a solution. Embedded payments have been gaining popularity in the world of SaaS for some time now, and we get why. When properly used, embedded payments can be a powerful growth driver for your business and catch the attention of your customers and investors alike. That said, consider this article to be your high-level guide to embedded payments and how to get started.

What are Embedded Payments? 

Simply put, embedded payments allow software companies to add payment infrastructure to their core product offering so their customers can enjoy a fully integrated payment experience. It’s also important to note that Embedded Payments also fall under a broader umbrella known as “Embedded Finance.” 

So, what’s embedded finance?

Embedded finance is pretty much what it sounds like: embedding financial products or services, like payment acceptance, into a non-financial application or platform. Here’s a quick look at some of the more traditional services that embedded finance encompasses, in addition to embedded payments:

• Embedded Credit allows merchants to offer their customers Buy Now Pay Later (BNPL) options directly from their platform. 
• Embedded Lending enables B2B software providers to offer merchant lending.
• Embedded Insurance allows merchants to offer their customers insurance for the goods/services they buy directly from your platform.
• Embedded Banking provides end-users access to a suite of banking services (deposits, withdrawals, fund management, etc.) To see embedded banking in action, open up the Starbucks mobile app, which allows users to store cash and earn rewards all from the app.

For software companies to fully embrace embedded finance, embedded payments are a great place to start. Now, let’s talk about why ISVs should jump on board and how to get started.

Why Leverage Embedded Payments

Embedding payments into your platform can be one of the simplest ways to elevate your product offering in the eyes of both consumers and investors. However, some embedded payment providers offer more-coveted benefits than others, so it’s crucial to do your research when looking for a solution. Let’s take a look at the key benefits that an embedded payment platform like Tilled can offer your B2B software company:

Benefits With Tilled:

Tilled PayFac-as-a-Service allows software businesses to accept payments and receive all of the benefits of being a Payment Facilitator (or PayFac), without taking on the liabilities, risk, or additional personnel that a typical PayFac would. Unlike many managed PayFac providers or legacy processors, we combine transparent pricing, full-service offerings, and easy-to-implement technology to help ISVs get the most out of embedded payments. The following are some of the key benefits our solution can provide your B2B software company: 

• Improved User Experience

Where to begin? Embedded payments offer many time-saving advantages that help to create a more seamless user experience. For starters, integrating payments into your product eliminates the need for merchants to process payments through a third-party system, allowing them to manage payments from the same place as other business activities. Additionally, because Tilled makes it easy to store payment information securely, your merchants no longer have to re-ask their customers for payment information or manually re-enter card data, creating a more seamless checkout process for both parties. 

• Enhanced Data Insights

Our out-of-the-box reporting delivers ISVs and their merchants with a bird’s-eye view into their financial health. With Tilled, users can easily view key payment metrics such as gross vs. net processing volume, transaction success and chargeback rates, average transaction amount, and more in real-time. Additionally, users can leverage Tilled’s downloadable payout and reconciliation reports to complete the vital payment processes needed to keep cash flow steady. 

• Increased Revenue

When it comes to driving revenue and your valuation, Tilled can help you kill two birds with one stone. How? By offering you a competitive revenue share and refusing to nickel and dime you, Tilled makes it easy for you to monetize payments. That means for every successful transaction merchants make through your platform, you (the ISV) generate commissions.

By utilizing Tilled you can create a brand new recurring revenue stream that oftentimes is more than your current SaaS monthly recurring revenue. This not only is a positive for you, but potential investors see payments revenue as a key to success.

Tilled Can Help! 

We can even help you grow your processing volume by helping you attract and onboard merchants through our Partner Marketing Program. ISVs can access a library of carefully-crafted marketing materials and services that we purpose-built to help get their merchants to start processing payments through Tilled. Naturally, our Partner Marketing services are also free of charge. Additionally, if you’d like to give merchants an experience that aligns with your core software, we can help you white-label your Tilled platform and Merchant Application to include your branding and logos.

Get Started with Embedded Payments

When it comes to the future of payments, embedded payments are sure to be at the forefront, enabling businesses to increase system capabilities, speed up a process that was previously pretty manual, and improve margins across the industry.

So, what are you waiting for? Tilled PayFac-as-a-Service makes it easy for B2B software businesses to take full advantage of embedded payments. 

Contact our Sales team today to learn more about how you can get started with Tilled!