Embedded Finance has moved from a niche trend to a fundamental growth driver in the fintech and B2B SaaS sectors. According to a recent study from Adyen and the Boston Consulting Group (BCG), companies adopting Embedded Finance solutions can triple or even quadruple their revenues. Yes, you read that correctly—triple or quadruple.
With recent landmark fundraisings, such as the €40 million Series B secured by Swan, it's clear that Banking-as-a-Service (BaaS) and Embedded Finance are not just passing fads, but critical strategic assets.
But why exactly is Embedded Finance such a game-changer, and why should it matter specifically to your company?
Let’s dive deep into the opportunities it offers around card issuing, payment services, embedded lending, and account creation, and understand how these can drastically amplify your revenue streams
Card issuance allows SaaS B2B and fintech companies to launch customized payment cards, whether physical or virtual, directly embedded within their platforms. This transforms them from pure software providers into essential financial partners for their customers.
Real-world example: Consider Spendesk, a B2B expense management SaaS. By integrating card issuance directly into their solution through a partnership with banking infrastructure providers like Marqeta, Spendesk increased customer retention significantly, creating new monetization channels. SaaS platforms can similarly leverage card issuing to embed payments deeply into their customer workflows, capturing more revenue.
The Adyen-BCG study reveals that integrating card issuance can alone lead SaaS providers to boost revenue streams substantially. By embedding financial services, a SaaS business doesn’t just generate incremental revenue—it builds entirely new profit centers, allowing it to potentially triple or quadruple its revenues.
Payment processing is the most widespread use-case of Embedded Finance today. SaaS and fintech providers embed payment gateways directly within their platforms, offering frictionless payment experiences without users needing third-party solutions.
Real-world example: Shopify is a notable success story here. By integrating embedded payment solutions like Shopify Payments (powered initially by Stripe), the company not only boosted customer stickiness but drastically increased revenues per customer, leading to a skyrocketing valuation.
The power here lies in capturing a share of transactional revenues. According to the Adyen and BCG research, embedding payment services directly into SaaS products significantly enhances customer lifetime value (LTV). SaaS platforms that embed payment functionalities typically report growth of three to four times their initial revenue, thanks to new transaction-based income.
Embedded lending is perhaps the fastest-growing segment within Embedded Finance. It allows SaaS platforms to offer financing directly at the point of need, greatly simplifying customers' financial decisions and removing traditional friction associated with borrowing.
Real-world example: Defacto, a rising French fintech specialized in embedded lending, enables SaaS businesses to seamlessly integrate lending services directly within their platforms. This integration helps businesses offer instant, tailored financing options to end customers. Consequently, SaaS companies like Pennylane, Qonto, or Agicap that integrate Defacto's financing solutions can significantly increase their Average Revenue per User (ARPU).
This integrated approach doesn’t just offer convenience; it creates powerful monetization opportunities. According to BCG’s recent studies, SaaS platforms embedding lending solutions can see their revenues multiplied threefold or even fourfold by capturing a portion of lending-related fees or interests directly through their product interface.
It's also a must have as many European governments are seeing up the e-invoicing standard.
Embedded account creation allows Saas or Fintech to instantly open bank accounts or wallets for their customers, bypassing tedious traditional banking processes. This simplicity encourages quicker adoption, more usage, and, inevitably, increased revenues.
SaaS providers that adopt embedded account creation observe substantial boosts in customer lifetime value (LTV). According to BCG-Adyen, such integrations create deep customer engagement, potentially leading platforms to triple or quadruple their revenue by becoming indispensable financial service providers.
Why partnerships departments should lead embedded finance initiatives?
Embedded Finance sits at the intersection of financial innovation and partnership-led growth (PLG). To successfully implement these financial products, strong strategic partnerships are essential. Your partnerships department becomes not just a support function but a powerful revenue engine by orchestrating collaborations between SaaS platforms and Banking-as-a-Service providers like Swan, Solarisbank, Marqeta, or Stripe.
A partnership-first approach reduces time-to-market and regulatory complexity. It also brings expertise, technical infrastructure, and instant credibility, making the difference between modest incremental revenue and explosive revenue growth. Indeed, the latest studies consistently highlight partnerships as the quickest and most scalable way to embed financial solutions.
Embedded Finance: a proven path to tripling or quadrupling SaaS revenue
To put it bluntly: Embedding financial services isn’t optional anymore. The strategic advantage is too significant to ignore. Whether through issuing payment cards, providing seamless payment services, embedding lending, or enabling rapid account creation, the opportunities are immense. Companies that integrate Embedded Finance report accelerated growth trajectories, enhanced customer engagement, and most notably—dramatically increased revenues.
As emphasized by the landmark Adyen-BCG study, embedding finance enables SaaS platforms to increase revenue streams to three or even four times their original size. Those who act fast in leveraging these financial services, particularly through strategic partnerships, are setting themselves up for sustainable hyper-growth.
By adopting these strategies, your business won't simply grow—it can multiply.
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