For software companies, finance is no longer an outside domain – it’s becoming an embedded feature. SaaS platforms in various verticals (from construction management software to salon booking systems) are weaving payments, lending, banking, and other financial services directly into their products. Why? Embedded finance can significantly boost a SaaS company’s revenue, user engagement, and customer lifetime value.
Recent industry reports (including a study by S&P Global Market Intelligence commissioned by Stripe) quantify these benefits. One striking finding: users of embedded financial features see a 20–40% increase in their sales within six months, compared to similar users who don’t have those features. For example, when a SaaS platform enables its customers to accept payments or offer financing to end-clients, those customers tend to close more sales and grow faster, which in turn drives higher transaction volume through the platform. Additionally, embedded lending users show 10–20% higher customer retention than those not using embedded finance. The reason is simple – a platform that also handles your payments, financing, or treasury becomes much stickier. It’s harder for users to switch away when financial tools are deeply integrated into their daily workflow.
Beyond revenue lift, embedded finance lets SaaS companies deliver more tailored solutions. Traditional banks often offer one-size-fits-all products, leaving niche industries underserved. SaaS platforms, on the other hand, know their customers’ domain deeply. They can, for instance, embed a lending product optimised for the cash-flow cycles of a salon or a construction firm, or integrate an insurance offering relevant to the business’s needs. This creates new monetisation streams (earning a share of loans, payments, or insurance revenue) while solving customer pain points.
However, timing and execution are key. Not every SaaS is ready to become a mini-fintech overnight. Experts suggest a few readiness indicators before plunging into embedded finance: for one, a strong payments revenue base, with a payment attach rate >30% (i.e. a good portion of users already use your platform to handle payments). Also, at least $50M in annual gross payment volume (GPV) flowing through the platform (and ideally $100M+), is a threshold indicating sufficient scale. Additionally, if competitors in your vertical are starting to offer financial features, that’s a sign you should not fall behind.
Choosing the right banking/fintech partner is another critical piece. SaaS firms should seek partners who provide proven scalability and reliability (you don’t want outages in payments), robust compliance and risk management (to navigate regulations), an API-first technology for easy integration, and a track record in serving similar verticals. Often, partnering with a banking-as-a-service or payment infrastructure provider (like Stripe, Finix, etc.) can accelerate your go-to-market while handling the heavy lifting of licenses and banking relationships.
In sum, embedded finance is shifting from a nice-to-have to an essential strategy for SaaS companies aiming to increase ARPU and retention. It’s about transforming from a mere software vendor into a holistic platform that captures a greater share of the customer’s workflow (and wallet). Done right, it’s a win-win: users get more value in one place, and the SaaS company unlocks new growth. As one industry voice noted, embedded finance in SaaS is “a growth accelerator” that can differentiate a product in a crowded market. We’re likely to see many more SaaS providers announcing embedded payment, lending, or banking features in the coming year.
About the Author
The author is a fintech entrepreneur, investment professional, and corporate strategist with expertise spanning equity research and digital infrastructure. He is the Co-Founder and Director of Strategy at Zeeh Africa, a pioneering fintech platform building open banking and credit infrastructure to expand financial access across Africa. His leadership has earned international recognition, including honours at the AfricaTech Awards at VivaTech in Paris and inclusion in the AIFinTech100 global ranking.
He began his career in equity research at leading asset management firms, later driving strategic initiatives and cross-border expansion at United Bank for Africa. He holds an MBA from Duke University’s Fuqua School of Business, a B.Sc. in Mathematics from the University of Ibadan, and is an Associate of the Institute of Chartered Accountants of Nigeria and Fellow of the Institute of Management Consultants, Nigeria (FIMC).
