Inflation Hits 58% of Small Businesses and Pushes Embedded B2B Finance Forward

What started as a convenience play in consumer apps is becoming something much bigger in business: a way for platforms to turn payments, credit and cash flow tools into part of the product itself.

That is the clearest message from PYMNTS Intelligence’s “The Next Frontier: Why Embedded B2B Finance Is Breaking Out in 2025,” which shows that embedded finance is no longer just about making transactions smoother. In the B2B market, it is about helping companies move faster, manage working capital more effectively and build stronger relationships with customers and suppliers.

The report argues that embedded B2B finance is shifting from a niche idea to a mainstream driver of digital growth. Unlike consumer use cases, where the focus has often been on ease and speed at checkout, B2B embedded finance is being built into ERP systems, procurement tools and industry software to support larger, more complex transactions.

The data illustrate that this shift is being fueled by demand for liquidity, instant digital issuance and API-powered integrations. It also points to a larger change in mindset. Businesses are no longer looking at finance tools as separate services. They want them woven into the platforms they already use every day.

That shift matters because B2B finance has long been slowed by manual processes, old systems and disconnected workflows. Embedding financial tools directly into software can help remove some of that friction.

It can also open new revenue streams for platforms that offer services such as supplier financing, virtual cards and automated accounts payable and receivable tools. In that sense, the opportunity reaches beyond efficiency. It gives businesses a chance to make financial operations more strategic and more valuable.

Key points from the report:

58% of small businesses said inflation was a top financial challenge in 2025, underscoring why working capital and faster access to funds are becoming more important.

The embedded B2B market is projected to reach $15.6 trillion by 2030, up from $4.1 trillion today, showing how quickly this part of digital commerce is expanding.

The report identifies three forces accelerating adoption in 2025: macroeconomic pressure, technology shifts tied to APIs and cloud infrastructure, and the rise of digital issuance such as virtual cards.

The report also makes clear that this growth will not come easily. B2B finance carries bigger transaction sizes, stricter compliance demands and more legacy infrastructure than retail payments. That makes implementation harder, especially for firms still operating with dated ERP and invoicing systems.

Still, the tone of the report is notably forward-looking. It suggests that companies willing to modernize and partner with infrastructure providers that are API-first and compliance-ready can do more than catch up.

These firms can use embedded finance to improve cash flow, simplify operations, create recurring revenue and deepen loyalty over time. After years of talking about digital transformation in broad terms, this is one area where the business case is getting much more concrete.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.