In the ever-evolving financial technology landscape, embedded payments have gone beyond a generic buzzword to become a reality. Consumer-facing services have swiftly embraced the concept of embedded payments. Think of your favourite mobile apps like Netflix or Uber - smooth transactions, in-app purchases, and subscription renewals seamlessly integrated into the user experience -, and embedded consumer payments have now become a staple in our digital era. Embedded B2B payments, although still lagging behind in adoption compared to the consumer segment, is on a swift upward trajectory and Edgar, Dunn & Company estimates embedded B2B payments will reach $16 trillion in market size by 2030.

This is the first article of a series of publications written by Edgar, Dunn & Company in 2025 focussing on B2B payments and finance.

What are embedded B2B payments?

Embedded B2B payments involve seamlessly integrating payment functionalities into non-financial platforms or applications that businesses already use. The goal? To make the B2B payments journey as intuitive and efficient as its consumer counterpart.

The first wave of B2B payment innovation brought digital payments, but these still required users to manually switch between systems – such as logging into a banking portal separately from a procurement platform to initiate payments, check balances, and confirm transactions. Embedded B2B payments represent the next evolutionary leap by integrating payment capabilities and workflows directly within the business systems companies already use, without leaving this environment.

There is a clear value for embedded payments in the B2B space

Beyond the standard benefits of electronic payments (efficiency, speed, and cost savings), integrating payments directly into business platforms provides unique advantages:

• Integrated payments with B2B platforms: Integrated payment systems eliminate platform switching and manual data re-entry, increasing internal efficiency, reducing errors and freeing staff for value-added tasks. With 69% of companies struggling with a lack of integration between payment and business systems, embedded business software offers a comprehensive solution

• Efficient approval workflows: Complex multi-stakeholder B2B approvals can delay invoice processing timelines by an average of 10 days or more and can be condensed to minutes through automated routing and customised approval matrices

• Enhanced security: Given that over 60% of companies experienced B2B payment fraud in 2023, automated fraud prevention workflows mitigate risks by removing manual intervention, validating invoices and payment details and strengthening overall security

• Real-time reconciliation: Automated recording directly at the point of transaction eliminates manual reconciliation challenges, preventing reporting delays, data mismatches, and compliance risks

These compelling advantages will drive market adoption of embedded B2B payment solutions, creating a significant market opportunity.

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Edgar, Dunn & Company estimates that the embedded B2B payments market will reach $15.6 trillion by 2030 representing a nearly fourfold from its market size in 2024, which stood at $4.1 trillion. The major share of this value is expected to originate from Asia Pacific, Europe and North America, aligning with trends observed in the broader B2B payments market.

In its latest whitepaper, Edgar, Dunn & Company projected that the global B2B payments market will expand to $150 trillion by 2030 and embedded payments are projected to account for 10.4% of this market value. The driving forces behind this 25% CAGR growth of embedded payments include the continuous technical advancements of B2B solutions, escalating adoption of digital payments and e-invoicing by both SMEs and large corporations. This expansion is further fuelled as technology platforms such as B2B software, vertical SaaS and marketplaces seek to differentiate their offerings, strengthen customer relationships, and tap into new revenue streams through payment processing fees. AI is catalysing this transformation by enabling use cases such as automated invoice processing, enhanced fraud detection, predictive financial workflows and real-time transaction intelligence.

Additionally, the expanding B2B e-commerce sector estimated to reach $67 trillion globally in 2029, and the rising prominence of B2B marketplaces which serve as pivotal platforms for embedding payment solutions contribute to this growth. The opportunity is particularly significant in cross-border transactions, where embedded payments can streamline traditionally complex processes around FX management, international compliance, and multi-currency reconciliation. With cross-border B2B payments expected to reach $56 trillion by 2030, embedded solutions are well-positioned to address longstanding friction points in international trade. As the industry witnesses these transformative shifts, the embedded B2B payments sector is poised for substantial growth, presenting a lucrative opportunity for all stakeholders in the value chain.

The B2B embedded payments value chain is formed by a range of specialised participants

The embedded B2B payments value chain is a multifaceted network comprising a range of specialised participants, each delivering distinct services to build compelling solutions with strong value proposition. Payment providers form the foundation of the embedded B2B payments value chain and are composed of regulated entities and payment service enablers. Regulated entities (typically banks such as BNP Paribas, Citi, HSBC or JP Morgan) hold financial licenses and handle risk framework, compliance, and funds management. Payment service enablers build and maintain the infrastructure (middleware) for connecting these banks with technology platforms through APIs, making embedded payment capabilities accessible. Example players in this space include Weavr, Enfuce, Worldline, and Andaria. While these roles are often performed by separate institutions, in some cases a single institution may serve both functions as illustrated by U.S. Bank with its AP Optimizer offering.

These payment functionalities are then integrated into the products and services of various technology platforms. Some examples include B2B software like SAP Business Technology Platform (BTP), Oracle fusion ERP, and Microsoft Dynamics 365; vertical SaaS or industry-specific software such as Coupa (procurement and spend management) and Procore (construction project management); and B2B marketplaces like Mirakl. Through this integration, clients using these platforms can offer their trading partners - buyers and suppliers - a streamlined and integrated transactional experience. The value chain is further enriched by the involvement of value-added service providers who offer ancillary services like B2B Buy Now Pay Later (BNPL) (e.g., Hodoko, Billie), foreign exchange (FX) management (e.g., Santo), and electronic invoicing (e.g., Basware, Generix). These value-added providers have the capability to integrate directly with either payment providers or technology platforms and thereby improve the overall proposition.

For technology platforms, embedded payments are both a revenue driver and strategic differentiator. While transaction fees (through card fees, markup, or revenue share agreements with payment providers) provide direct monetary benefits, the primary rationale for embedding payments into their technical workflows lies in increased platform "stickiness" and reduced customer churn. Early movers in embedded payments will be well-positioned to capture market share and establish a competitive advantage.

Many technology platforms have already piloted embedded payments

It is interesting to note the whole payment value chain plays a very active role in embedded payments to facilitate the adoption and usage of different use cases.

B2B supply chain platforms can leverage embedded payment options for efficient transaction processing between manufacturers, distributors, and corporates. SAP BTP (Business Technology Platform) and Visa teamed up to provide SAP clients with embedded payment services. Businesses can use Visa corporate and virtual cards to make payments on SAP software platforms directly, rather than leaving their existing enterprise ecosystem, whether or not they accept card payments.

Mastercard is also playing a pivotal role in embedded B2B payments across various industries, including healthcare. One notable example is its collaboration with health tech player, Remedinet in Asia Pacific. By integrating its virtual card technology directly into Remedinet's platform, the solution drastically simplifies the traditionally complex healthcare claims payment process between insurers and healthcare providers.

While fintech may have first jumped into the embedded payments wagon, banks have also begun to have more impact in this area. U.S. Bank launched an embedded payment solution for businesses within ERP system Microsoft Dynamics 365. This lets businesses utilising Dynamics 365 to access U.S. Bank's AP Optimiser straight from their business application, enabling treasury management teams to automate invoice processing for corporate and consumer payment disbursement.

Marketplaces have also come forward with interesting initiatives. Ankorstore, a leading European B2B marketplace, has entered into a strategic partnership with B2B BNPL provider Hokodo to introduce enhanced flexibility in payment terms on its platform. Leveraging Hokodo's capabilities of buyer eligibility assessment in real-time, Ankorstore provides its clients with the option to defer payments to a later date (30 or 60 days) or choose instalment plans (3 or 4 instalments), while ensuring that sellers receive full payment upon the delivery of goods.

This is not an exhaustive list, and more players are realising the added value of embedding payments for their clients and partners. The list of compelling use cases is wide, and many opportunities still need to be explored.

Strategic considerations and best practices for embedding payments solutions in technology platforms

Technology platforms seeking to embed payments must first understand the key payment hurdles and pain points their clients face. Edgar, Dunn & Company has identified several hurdles through different engagements and numerous conversations with corporates as part of our B2B practice, ranging from technical complexities and compliance issues to security concerns.

Many corporates are hesitant to change their current payment processes due to internal policies or the comfort of the status quo. Corporates often lack detailed visibility into their current direct and indirect B2B payment costs, making it challenging to quantify the return on investment of new solutions. The perceived costs and integration complexity of digital payments can also be a concern. Additionally, there is also low market awareness about the benefits of embedded payments among businesses. Many corporates still face the "chicken-and-egg" dilemma - hesitating to embrace new payment flows and solutions unless confident their trading partners will accept and use them. Security and data privacy concerns also persist as business platforms will gain access to sensitive transaction-level payment data.

Recent research by infrastructure platform Unit indicates that 84% of businesses are open to receiving financial services such as payments from their technology vendors. However, converting this willingness into actual adoption requires addressing pain points and ensuring embedded payment offerings deliver clear value. At the primary level, this includes providing comprehensive ROI analysis to clients, ensuring wide acceptance of payment methods such as bank transfers, payment cards including virtual card and alternative payment methods, and implementing robust security measures.

The offering can be further enhanced by partnering with value added service players. For horizontal software like ERPs and AR/AP solutions, this means integrating features such as multicurrency support, KYB compliance, financing options and dynamic discounting. Vertical-specific SaaS platforms can further leverage their rich industry-specific proprietary data to offer tailored financial use cases. Examples include automated claims processing and eligibility verification in the healthcare sector, and progress payment automation and lien waiver processing in the construction vertical. Most importantly, the platform must offer end-to-end functionalities to prevent users from needing to switch to external systems.

Regarding execution, technology platforms face a critical ‘build versus partner’ decision. Rather than becoming fintech themselves, partnering is often the preferred option to start with as it provides a faster time-to-market, fewer regulatory hurdles, minimal upfront costs, and lower risk exposure. This decision can be re-evaluated at a later stage as transaction volumes grow and initially focusing on core product offering while leveraging payment providers’ expertise often proves the correct strategy.

Action plan: making embedded payments a reality

For technology platforms looking to begin their embedded payments journey, Edgar, Dunn & Company recommends the following steps:

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1. Payment needs assessment: Conduct a thorough assessment of customers current payment processes, pain points, and future state requirements to define a compelling embedded payments value proposition

2. Business case: Explore the optimal partnership model and ROI business case, covering both direct revenue opportunities (e.g., transaction fees, markup) and indirect benefits (e.g., customer stickiness, reduced churn)

3. Go-to-market strategy: Develop a comprehensive go-to-market strategy including pricing structure, sales enablement, and customer education

4. Partner evaluation: Evaluate payment providers through a structured RFP process, ensuring alignment on technical, commercial, and strategic levels and involving the different stakeholders and departments at the technology platforms

5. Implementation planning: Create a detailed implementation plan covering architecture, integration approach, and phased rollout to minimise disruption to existing customers

Our experience working closely with banks, schemes, fintech, technology platforms, and corporates on B2B payment projects has provided us with clear perspectives on the future - the trend is unmistakably bullish for embedded payments in the B2B landscape. Looking ahead, the question is no longer if embedded payment functionalities will become a staple in the majority of B2B solutions, but rather a matter of how and when. This inevitable integration will define a new era of transaction efficiency in B2B payments, one that Edgar, Dunn & Company is primed to support alongside our partners and clients.

The content of this article does not reflect the official opinion of Edgar, Dunn & Company. The information and views expressed in this publication belong solely to the author(s).