Embedded Payments Become Backbone of B2B Commerce

In the world of B2B, where game-changing deals can hinge on the workflows surrounding a transaction, payments are no longer an afterthought — they’re a strategic asset.

And businesses are turning to embedded payment solutions to automate and streamline the way they pay and get paid as the financial plumbing of the future is integrated directly into the tools companies already use.

“We’re injecting payment capabilities into business software platforms — whether that’s accounts payable, accounts receivable, vertical SaaS, or enterprise resource planning [ERP] systems,” Daniel Artin, head of FinTech partnerships at Boost Payment Solutions, told PYMNTS for the series “What’s Next in Payments: Embedded Everything — Priority One for Financial Services in 2025.”

“Research shows that the volume of embedded B2B payments today is around $2.5 trillion, and we expect that to grow upwards of $6.5 to $7 trillion within the next two to three years,” Artin said, underscoring just how quickly the market is expanding.

For small businesses, embedded payments can mean the difference between sinking under paperwork and thriving with real-time cash flow insights. For larger enterprises, it’s about shaving days off the payment cycle, reducing costs, and building more resilient financial systems.

But the benefits of embedded payments aren’t just about speed and convenience. They’re also helping businesses unlock new revenue streams, foster better supplier relationships, and gain unprecedented visibility into their financial health.

What Embedded Finance Means for B2B Payments

As the digital economy continues to evolve, embedded B2B payments are poised to become the backbone of business transactions, simplifying everything from procurement to payroll, and driving the next wave of business innovation.

Artin pointed to several key factors fueling this growth, including a competitive software-as-a-service (SaaS) environment, the growing need to diversify revenue streams, the value of data, and the fact that institutional investors are starting to view embedded payments as a must-have.

Regarding the SaaS outlook, he noted that, “with the uncertain geopolitical and macroeconomic environment, especially during an election year, adding payments capabilities to your business software makes you more competitive and creates a sticky customer relationship … adding payments positively impacts enterprise value and brand perception.”

And by embedding payments into business platforms, companies gain access to valuable transaction data. “This data offers rich insights that can improve product development and strengthen go-to-market strategies,” Artin said.

Still, embedded finance has become a broad term, and the sophistication of B2B transactions has resulted in a complex landscape where mistakes around gaining the true benefits of embedded solutions are common.

“The biggest mistake we see is companies focusing too much on selling based solely on price,” Artin said, and when businesses advertise standard rebate schedules from projected virtual card adoption rates, for instance, they may set unrealistic expectations without fully considering the complexity of the payment acceptance process. “Selling on a combination of value — automation, security and pricing — tends to lead to more successful programs,” he said.

Another challenge is the expectation that B2B payments will follow the frictionless, one-click experience of B2C payments. “B2B is anything but seamless,” Artin said, emphasizing the need for businesses to set realistic expectations and prepare their customers for the complexity of digitizing larger-ticket transactions.

Monetizing Embedded B2B Payments

One of the most complex aspects of embedded B2B payments is figuring out how to monetize them. “Monetizing payments isn’t as simple as it seems,” Artin said. He broke down the credit card payment economics into three key revenue streams: issuer interchange, brand network assessment fees and merchant processing or acquiring fees. Depending on where a business software platform sits in this value chain, there are opportunities to capture incremental revenue.

Accounts payable platforms, for example, can leverage a model where they help buyers facilitate invoice payments to vendors, earning rebates on transactions processed via virtual cards. Alternatively, larger companies with established treasury relationships might prefer a “bring your own card” model, where SaaS platforms allow them to use their own card programs to gain exposure to pre-established rebate economics negotiated with their issuers.

On the accounts receivable (AR) side, companies can monetize payments by earning a portion of acquirer fees. “You might build your own in-house payment solution or form referral relationships with FinTech acquirers,” Artin said. “White labeling is also an option for those wanting to leverage another firm’s expertise.”

Artin said partnerships are essential to the success of embedded B2B payments. “Unlike B2C, where it made sense to own every inch of the payment process, B2B is more complex,” he said. Partnerships with FinTechs that have deep industry expertise can help SaaS platforms save time, money, and exposure to changing industry regulations, onboarding requirements and underwriting processes.

Trends Shaping the Future of Embedded B2B Payments

The future of embedded B2B payments is bright but complex. Looking ahead, Artin identified three major trends that will shape the future of embedded B2B payments: first-mover advantage, the growing role of data and artificial intelligence (AI) and the marketplace fact that mergers and acquisitions will continue to drive growth in embedded B2B payments.

He said the shift toward virtual cards is accelerating quickly. “Virtual cards are growing at a double-digit rate, with a 20% clip expected over the next five years. SaaS companies that embrace digital payments will reduce competition and increase market share,” he said.

At the same time, access to transaction data and the ability to leverage AI, particularly generative AI, will differentiate the winners in the space. “AI will enable deeper levels of customer intimacy, automation and efficiency,” Artin said. Companies that can harness this technology to provide personalized, data-driven services will have a significant market advantage.

“The shift that is happening is going to be a seismic wave,” he said.