Finance Is Moving Into Software: Why Businesses Want Financial Services Where They Work

Finance is no longer limited to banking websites, standalone financial applications, or traditional financial institutions.

Increasingly, financial services are appearing inside the software businesses already use every day.

A company might use accounting software to manage its finances an e‑commerce platform to sell goods a marketplace to link buyers and sellers or a SaaS platform to handle customers and operations. These platforms are now adding tools straight into the same digital space.

Instead of asking customers to leave the platform and visit a separate bank or payment provider, businesses can make financial services available exactly where they are needed.

This shift is commonly known as embedded finance.

Embedded finance places financial products and services inside non-financial platforms and customer journeys. These services can include payments, accounts, cards, lending, insurance, and other financial capabilities. McKinsey describes the model as financial products being integrated into digital interfaces that customers already use, while the Dutch central bank has highlighted the role of technology and platformisation in making these services increasingly accessible through non-financial platforms.

The trend is particularly important for B2B software.

Businesses do not want to use one application for sales, another for payments, another for banking, another for financing, and another for financial reporting if those functions can be connected in one workflow.

That is why finance is increasingly becoming a built-in layer of business software. The change can be summarized simply: Finance used to be a separate destination. Now it is becoming part of the workflow.

What Does It Mean When Finance Moves Into Software?

The phrase “finance is moving into software” does not mean traditional banks are disappearing.

Instead, it means financial capabilities are increasingly being delivered through software platforms that customers already use.

Consider a small business owner.

Traditionally, the business might need separate services for:

• Business banking
• Payment processing
• Invoicing
• Accounting
• Expense management
• Business lending
• Payroll
• Financial reporting

Each service may have its own login, dashboard, data structure, and workflow.

This can create fragmentation.

The business owner may need to move information from one system to another.

Modern software platforms are increasingly trying to reduce that fragmentation. A business management platform, for example, could allow customers to invoice clients, receive payments, manage expenses, access financial information, and potentially obtain financing from within one environment.

This is where embedded finance becomes powerful. The financial service does not necessarily need to be the main product. Instead, it becomes a capability inside the main product.

Why Businesses Want Financial Services Inside Their Software

The biggest reason is convenience.

Businesses want fewer disconnected processes.

When financial services are integrated into software, transactions can become part of the workflow rather than a separate activity.

For example:

Create invoice → Send invoice → Receive payment → Reconcile transaction → Update accounting records

A traditional workflow may require several systems.

An integrated workflow can connect these steps.

This can make financial operations easier to manage.

There is also a strategic reason.

Financial services can strengthen the relationship between software companies and their customers.

A business that relies on one platform for payments, banking, invoicing, and financial management may have less reason to move between multiple providers.

Recent industry analysis also points to growing momentum in B2B embedded finance, particularly among SMEs that increasingly operate through industry-specific software for areas such as inventory, procurement, payroll, scheduling, and invoicing.

This creates an important shift:

Software is no longer only helping businesses manage finance. It can increasingly become part of the financial infrastructure itself.

What Is Embedded Finance?

Embedded finance is the integration of financial products and services directly into non-financial applications, platforms, websites, or business workflows.

The non-financial company does not necessarily become a bank.

Instead, it can partner with banks, FinTech companies, payment providers, infrastructure providers, and other regulated financial institutions.

The software company owns the customer experience while specialized providers may provide the underlying financial infrastructure.

This creates an ecosystem involving multiple participants.

This model allows financial capabilities to become part of existing software without requiring every software company to build a bank from scratch.

McKinsey notes that embedded-finance distributors can include retailers, business-software companies, marketplaces, telecom companies, and other platforms, while technology providers and financial institutions can work together to provide the underlying infrastructure.

How Embedded Finance Works

The basic model can be understood through a simple flow:

Customer → Business Platform → Financial API/Infrastructure → Bank or Financial Institution

The customer may see only the business platform. The complex financial infrastructure operates behind the scenes.

For example, imagine a business software platform that allows a company to send an invoice.

The platform could provide a payment button directly inside the invoice.

When the customer pays, the payment provider processes the transaction and sends the result back to the software platform.

The platform can then automatically update the invoice status.

The workflow could look like:

• Invoice Created
• Payment Link Generated
• Customer Pays
• Payment Processed
• Invoice Marked as Paid
• Accounting Record Updated

This is much more than a payment integration.

It is a connected financial workflow.

Why Business Software Is Becoming a Financial Platform

Business software is increasingly becoming a platform because it already sits at the center of key commercial activities. Companies use platforms to manage customers, sales orders, inventory, employees, suppliers, invoices and payments. Business software learns when financial services are needed and can act accordingly.

Key Points

• Marketplaces know when transactions occur and when sellers need to receive payments.
• Payroll platforms know when employees need to be paid.
• Accounting platforms have access to important financial information.
• E-commerce platforms know when customers are making purchases.
• Business management platforms can connect financial activities with everyday workflows.

Because business software platforms already understand the context, timing and purpose of activities adding services such, as payments, lending, insurance, payroll or financial management can become a natural extension. Of customers moving to a separate financial provider services can be offered directly within the software at the moment they are needed.

Embedded Payments: The Starting Point

Payments are one of the most visible forms of embedded finance.

A business platform can integrate payment functionality so customers do not need to leave the platform to complete transactions.

For a SaaS company, this could mean allowing customers to collect payments directly through the software. For a marketplace, it could mean supporting payments from buyers and payouts to sellers. For an invoicing platform, it could mean allowing customers to pay invoices directly from the invoice interface.

This creates a more seamless experience.

Traditional Payment Journey

Business Software → External Payment Page → Payment → Return to Software

Embedded Payment Journey

Business Software → Payment Inside Software → Confirmation

The second approach can reduce friction and make payment functionality feel like a natural part of the product.

Payments are also strategically important because they create frequent customer interactions.

Once a platform successfully integrates payments, it can potentially expand into additional financial services.

Embedded Banking and Business Accounts

The next step beyond payments can be embedded banking.

Business software platforms may provide banking-related capabilities through embedded financial infrastructure.

Depending on the product and regulatory structure, these capabilities can include:

• Business accounts
• Money movement
• Cards
• Transfers
• Cash management
• Account information

The objective is not necessarily to replace every traditional banking service.

Instead, the software platform can provide relevant financial capabilities where the customer already works.

For example, a business using an accounting platform might prefer to view financial information and initiate relevant transactions without constantly switching to a separate banking application.

This can make financial management more connected.

Embedded Lending and Business Financing

Embedded lending is becoming an important part of embedded finance because business software can identify financing needs within existing workflows. Platforms may already have access to information about sales, transactions, cash flow, or business activity, allowing financing options to be presented closer to the moment when funding is needed.

Key Points

• E-commerce Platforms: Can identify merchants that may need working capital for inventory or growth.
• Marketplaces: Have transaction data that can provide insight into seller activity.
• Accounting Platforms: Can connect financing opportunities with existing financial information.
• Faster Experience: Businesses can explore financing without leaving the platform.
• Contextual Offers: Financing can be presented when a genuine business need appears.
• Credit Risk Remains: Embedded lending changes the delivery experience but does not eliminate underwriting, compliance, or credit risk.

Traditional Approach

Business Needs Financing → Searches for Lender → Separate Application → Credit Review → Decision

Embedded Lending Approach

Business Needs Financing → Financing Option Appears Inside Platform → Application Within Workflow → Decision

The key difference is where the financing experience happens. Instead of forcing businesses to leave the software they already use, embedded lending brings financing closer to the existing business workflow, making access potentially more convenient and contextual.

How Embedded Finance Is Changing SaaS

SaaS companies traditionally generate revenue through software subscriptions.

But software businesses are increasingly exploring financial services as an additional layer of their products.

Consider a vertical SaaS company serving restaurants.

Its platform may already manage:

• Orders
• Payments
• Inventory
• Staff schedules
• Customer information
• Sales reporting

Adding financial capabilities can extend the platform’s role.

It could potentially support:

• Payment acceptance
• Business accounts
• Expense management
• Financing
• Automated financial reporting

The software moves from being a tool used by the business to becoming part of the business’s financial infrastructure.

This can increase platform engagement and potentially create new revenue opportunities.

A recent 2026 industry discussion from Adyen describes embedded finance as a potential competitive advantage for B2B SaaS companies, particularly as software development itself becomes easier to replicate.

Why SMEs Are Driving Demand

Small and medium-sized businesses often have limited resources.

They may not have large finance teams or dedicated technology departments. They also use business software extensively.

This creates a strong opportunity for embedded financial services.

Instead of requiring SMEs to assemble a complicated collection of financial tools, platforms can bring relevant capabilities into the workflows businesses already understand.

For example:

Accounting Software

could potentially provide:

• Invoicing
• Payment collection
• Expense management
• Cash-flow visibility
• Business account connectivity
• Financing options

This can reduce the number of separate tools businesses need to manage.

Research from Oliver Wyman published in 2026 highlights growing B2B momentum in embedded finance and notes that many SMEs increasingly run their operations on industry-specific software.

The Role of APIs in Embedded Finance

APIs are one of the technical foundations of embedded finance.

They allow different software systems to communicate with one another.

For example:

Software Platform ↔ Payment API

or:

Business Platform ↔ Banking API

or:

Accounting Software ↔ Financial Data API

Through these connections, software platforms can access specific financial capabilities without building the entire underlying infrastructure themselves.

APIs can support functions such as:

• Payment initiation
• Payment status
• Account information
• Transaction data
• Customer verification
• Card issuing
• Money movement

This modular approach is one of the reasons embedded finance can scale across different types of software.

McKinsey has highlighted the importance of modern developer experiences and well-documented APIs for platforms that want to integrate embedded-finance products.

Banking-as-a-Service and Embedded Finance

Banking-as-a-service and embedded finance are connected,. They are not the same thing.

Banking-as-a-service usually means the systems and support that let businesses or FinTech companies get banking features using technology and working with others.

Embedded finance is the idea of putting financial services inside a product or experience that is not financial.

A simplified relationship is:

BaaS / Financial Infrastructure → Enables → Embedded Financial Services

For example, a software platform may use financial infrastructure from a provider while presenting the final banking or payment experience under its own platform.

This allows businesses to focus on the customer experience while specialized providers handle much of the underlying infrastructure.

How Embedded Finance Creates New Revenue Opportunities

Embedded finance is not only about convenience.

It can also create potential business opportunities for software platforms.

A software company may already have:

• A large customer base
• Frequent customer interactions
• Transaction data
• Strong industry knowledge
• Existing distribution

Financial services can become an additional layer of monetization.

Potential revenue opportunities can come from:

• Payment-related services
• Account services
• Card products
• Lending
• Financial management tools
• Other value-added services

The exact economics depend heavily on the product, partnerships, regulatory model, risk allocation, and market.

Importantly, embedded finance does not automatically guarantee higher revenue. The financial service must solve a real customer problem.

If the product adds complexity without delivering value, customers may not adopt it.

How Embedded Finance Improves Customer Experience

The strongest embedded finance products make financial services feel almost invisible.

Customers do not necessarily want to think about the financial infrastructure.

They want to complete a task.

For example:

A business owner wants to get paid.

They do not necessarily want to:

1. Open a payment provider account.
2. Configure another dashboard.
3. Export transaction data.
4. Import it into accounting software.
5. Reconcile payments manually.

They want to:

Send an invoice → Get paid → See the transaction recorded

Embedded finance can help move the experience toward that outcome.

The customer sees a simpler workflow.

The complexity remains behind the scenes.

The Dutch central bank has similarly highlighted the convenience of financial services being available directly within digital platforms while also emphasizing the risks that accompany this integration.

Embedded Finance and Financial Automation

Embedded finance becomes even more powerful when combined with automation.

A financial event can trigger another business action.

For example:

• Customer Pays
• Payment Confirmed
• Invoice Updated
• Accounting Record Updated
• Customer Notified

This can happen automatically.

Another example:

• Invoice Becomes Overdue
• Automated Reminder
• Payment Link Sent
• Payment Received
• Invoice Closed

This combination of financial services and workflow automation can reduce manual work.

It can also help businesses create more predictable processes.

Instead of employees repeatedly performing the same tasks, software can execute predefined workflows.

The Role of Data in Embedded Finance

Data is another major part of the embedded finance opportunity.

Software platforms often have valuable information about how businesses operate.

This can include:

• Sales activity
• Payment history
• Customer behavior
• Invoice activity
• Cash flow
• Inventory
• Expenses

When financial services are integrated with this information, businesses can potentially receive more contextually relevant financial experiences.

For example, a platform may identify that a business regularly receives payments from customers but experiences a cash-flow gap before supplier payments are due.

That information could support relevant financial tools.

However, using financial data also creates significant responsibilities.

Businesses need appropriate controls around:

• Data privacy
• Consent
• Security
• Access
• Accuracy
• Regulatory requirements

Data can create better financial experiences, but only when it is handled responsibly.

Benefits of Embedded Finance for Businesses

Embedded Finance Across Different Industries

Embedded finance is not limited to one sector.

Different industries can use financial services in different ways.

The important point is that the financial service is connected to an existing business workflow.

Challenges Businesses Need to Consider

Embedded finance creates opportunities, but it also introduces complexity.

Businesses should not treat financial services as simply another software feature.

Financial products can involve significant regulatory, operational, and security responsibilities.

1. Regulatory Complexity

Financial services may be regulated differently depending on the product and jurisdiction.

A business offering payment, lending, account, or other financial capabilities needs to understand which regulatory obligations apply.

2. Partner Management

Many embedded-finance models depend on multiple partners.

A platform may work with:

• Banks
• FinTech providers
• Payment processors
• Identity providers
• Compliance providers

Managing these relationships can become complex.

3. Technology Integration

Financial systems need reliable APIs and integrations.

Poor integration can cause:

• Failed transactions
• Incorrect records
• Delayed updates
• Customer frustration

4. Fraud and Financial Crime

Financial services can create exposure to fraud and financial crime risks.

Businesses need appropriate monitoring and controls.

5. Customer Support

If a customer sees a financial service inside a software platform, they may expect that platform to help when something goes wrong.

The business therefore needs clear support processes.

Security, Compliance, and Risk Management

Security should be considered from the beginning of an embedded-finance project.

Financial data can be highly sensitive.

Businesses should consider:

• Authentication
• Authorization
• Encryption
• Secure APIs
• Data access controls
• Fraud monitoring
• Transaction monitoring
• Audit trails
• Incident response

Compliance is equally important.

The exact requirements depend on the financial service, jurisdiction, business structure, and partners involved.

This is why embedded finance generally requires collaboration between technology teams, financial partners, legal teams, compliance professionals, and business leaders.

The goal should be to make financial services convenient without weakening the controls that protect customers and businesses.

How Businesses Can Prepare for Embedded Finance

Businesses considering Embedded Finance should avoid starting with technology

The first question should be:

What financial problem are we solving for customers?

Step 1: Understand Customer Pain Points

Identify where customers currently experience financial friction.

For example:

• Payment collection
• Cash-flow management
• Financing
• Banking
• Reconciliation

Step 2: Identify the Right Financial Product

Do not add services simply because they are trending.

Choose services that naturally fit the customer workflow.

Step 3: Map the Existing Workflow

Understand how customers currently complete the task.

Identify unnecessary steps.

Step 4: Evaluate Infrastructure Partners

Consider providers based on:

• API capabilities
• Geographic coverage
• Security
• Compliance support
• Reliability
• Scalability
• Pricing
• Developer experience

Step 5: Build the User Experience

The financial feature should feel like a natural part of the software.

Step 6: Establish Risk Controls

Define:

• Approval processes
• User permissions
• Fraud controls
• Compliance responsibilities
• Data management policies

Step 7: Measure Results

Track metrics such as:

• Adoption
• Transaction volume
• Payment success rate
• Customer retention
• Processing time
• Support requests
• Revenue contribution

What Businesses Should Measure

The Future of Finance Inside Software

The long-term direction is becoming increasingly clear.

Financial services are moving closer to the point where businesses and consumers actually need them.

This does not mean every software company will become a bank.

Instead, software platforms can become distribution channels for financial products.

• A business may open an account through its accounting platform.
• A merchant may receive financing through its commerce platform.
• A seller may receive payments through a marketplace.
• A customer may access insurance during a purchase.

The financial service appears when it is relevant.

This is fundamentally different from the traditional model where customers first visit a financial institution and then complete their business activity elsewhere.

The future model is increasingly:

Business activity → Financial service appears inside the workflow

This shift is also visible in European industry discussions. An ESMA-hosted 2026 payments-sector discussion noted that payment services providers are expanding beyond payment acceptance into areas such as lending, cards, and business accounts, while payment volumes increasingly shift toward software platforms that embed financial services into their core products.

Conclusion

Finance is moving into software because the way businesses operate is becoming more digital. Companies now handle sales, customers, inventory, employees, invoices, payments and operations using platforms. This creates a chance to bring financial services right into the tools they already use.

Embedded finance makes this happen by letting payments, banking, lending and financial data become part of the software that businesses use every day. Of making customers jump between different tools platforms can offer financial features when they are needed most. This helps SaaS companies, marketplaces, accounting platforms, e-commerce sites and other digital platforms build more connected experiences..

Successful embedded finance isn’t just about adding features. Companies must truly understand what their users need. They also need technology, strong security and compliance, with rules. Importantly the financial services must actually improve the user experience. The best platforms make finance feel natural and invisible. The infrastructure works quietly behind the scenes. Finance is no longer something businesses access separately. Increasingly it is something they use directly inside the software that runs their business.