Unlocking growth: The power of embedded payments for software platforms

By Matt Downs, President, Integrated and Platforms

Let me take you behind the scenes of a discussion I recently had with my colleague, Brad Pinneke, who leads our Business Development team. Together, we've spent years working alongside software companies—big and small—helping them navigate the evolving landscape of payments. What we've learned is simple but profound: payments, once viewed as a mere cost of doing business, have transformed into a major opportunity for software platforms to drive growth, differentiate, and delight their customers.

From cost center to growth engine

Historically, payments were an afterthought—a necessary purchase to keep the business running. But today, they're a strategic lever. When platforms embed payments, they unlock new revenue streams, boost customer loyalty, and create seamless experiences that keep users coming back. The numbers tell the story. In 2019, only 35% of companies bought software and payments together. After the pandemic, that jumped to 45%. By 2027, industry analysts predict that 70% of payments accounts will be bundled with software. This shift is redefining how businesses—especially SMBs—approach their technology stack.

What is software-led (or embedded) payments?

Brad explains it best: “software-led payments, often called embedded payments, are when companies integrate payment processing directly into their software platforms. Instead of relying on third-party processors, software companies can manage everything—from payment acceptance to underwriting—within their own applications. This approach streamlines the user experience and opens doors to monetization and competitive advantage.”

Think about your favorite restaurant. Not long ago, paying meant handing your card to a server who disappeared for minutes, sometimes longer. Now, thanks to embedded payments, you tap your card at the table, complete a quick survey, and scan a QR code for your receipt—all within seconds. The platform behind this seamless dining experience isn't just facilitating payments; it's monetizing the transaction and gathering valuable customer insights.

Monetizing payments and financial services: Real stories, from real platforms

Embedded payments and financial services work for platforms of all sizes. Brad shared two customer use cases that illustrate this opportunity for software companies.

• A restaurant platform: By embedding payments into the software experience, the company transformed the checkout experience. Customers can now tap to pay, provide feedback, and receive receipts instantly. This seamless flow not only delights diners but creates new revenue for the business.
• A small business lending solution: A smaller client wanted to offer capital quickly to their userbase. By integrating an embedded finance solution, they started making loan offers to their customers within a week—resulting in five loans the following week.

Embedded finance isn’t just about payments; it’s about unlocking deeper monetization opportunities.

Beyond revenue: Building trust and retention

We know a branded, seamless payment experience builds trust. When software companies nail their payment flows, they see improvements in critical KPIs like customer acquisition cost (CAC), retention, and satisfaction (CSAT). One client reduced merchant attrition from 11% to 9% just by improving their payment experience. What does this all mean? Happy users stay longer, refer others, and buy more products.

Meeting software platforms where they are in the payments process

Every software company is at different stages in their payments journey. At Worldpay for Platforms, we believe in meeting platforms exactly where they are which is why we proudly offer three solutions.

• Referral payments. Let us handle the heavy lifting, so you can focus on your core business.
• PayFac-as-a-Service. Take more control and brand the payment experience under your software name.
• PayFac®. For the most sophisticated platforms, become a payments company in your own way.

Our team of 600+ dedicated experts supports you and your platform at every step of the payments journey, from sales and marketing to technology delivery. Whether you’re new to payments or ready for advanced options, we adapt to your exact needs—not the other way around.

Picking the right payments provider is crucial. You’re not just buying technology; you’re gaining a partner with expertise, scale, and commitment to your success. At Worldpay, our mission is to help software companies deliver exceptional experiences and grow their business—no matter their size or sophistication.

Key takeaways for software platforms who embed payments

Here are Brad’s three pillars for payment success:

• Monetization strategy: Use embedded payments and downstream services to create new revenue.
• Enhanced user experience: Embedded payments provide seamless flows for merchants and consumers, extending your brand.
• Increased control: Gain more influence over how users interact with your software.

Ready to power the possible for your platform?

If you’re curious about how embedded payments can transform your platform, check out our software-led payments e-book. It’s your complete guide to unlocking growth through payments.