Software platforms are no longer just helping businesses run their operations. Many are also helping them move, manage, and access money.
Toast is a good example. About 82% of its FY2025 revenue came from financial technology solutions rather than software subscriptions. Shopify saw a similar shift, with 76% of its revenue coming from merchant solutions.
Both companies started as software platforms, but financial services now make up a large part of their business. This shift is also shaping how SaaS in banking is evolving, as software platforms increasingly add financial services to their products.
The opportunity is growing. Bain & Company estimated in 2022 that embedded finance transaction value in the US could reach $7 trillion by the end of 2026, equal to about 10% of all US financial transactions.
But adding financial services to a software platform is not as simple as connecting an API. Businesses also need to consider compliance, security, data, financial infrastructure, provider relationships, and who is responsible when something goes wrong.
This guide explains how embedded finance works, where it is being used, what it can offer businesses, how to choose the right provider, what implementation can cost, and what to consider before getting started.
