When it comes to payments, innovation is the name of the game, and “embedded” is the prefix in most of the names being bandied about.
The trend, driven by technological innovation and changing end-user behaviors, has already been embraced in the consumer landscape via apps like DoorDash and Uber. However, it’s the B2B sector where the real value and innovation are set to flourish, WEX Chief Digital Officer Karen Stroup told PYMNTS for the series, “What’s Next in Payments: Embedded Everything: Priority One for Financial Services in 2025.”
“At the end of the day, … the payment or financial instrument is often a means to an end,” Stroup said, adding that “whenever there are friction points in business, that’s where you get drop off.”
“Embedding payments makes the process as seamless as possible,” she said.
Embedded finance refers to the integration of financial products, such as payments, lending, insurance or credit, directly into business operations and customer workflows. In the B2B space, these integrations often facilitate high-value, complex transactions across industries.
For example, Stroup said for companies like WEX, which processes over $225 billion annually in B2B payments, the focus is on embedding financial solutions into areas such as travel, fleet management and commercial supply chains. In these sectors, embedded payments facilitate cross-border transactions, manage multiple currencies, and ensure secure and timely payments.
Across B2B commerce, every second — and every dollar — counts. For decades, however, clunky, outdated payment systems have slowed things down, drowning businesses in manual processes and paperwork.
“Because COVID lasted for so long, it forced digital experiences, and that drove a huge need for embedded everything, embedded finance,” Stroup said.
With embedded payments, businesses are gaining access to real-time data that allows for better cash flow management and smarter financial decisions. With automation built into the process, the risk of human error drops, making fraud and payment mistakes a thing of the past.
“This idea of embedded everything — embedded finance expanding beyond payments — will become part of the ecosystem,” Stroup said. “When you couple that with [artificial intelligence], we’re obviously at a massive inflection point across the industry with the advent of all of the AI capabilities accelerating what we can do from an embedded finance perspective.”
B2B transactions are often more complex than consumer payments. They typically involve multiple parties, large amounts and intricate payment terms, such as net-30 or net-60 agreements. Embedded payments can simplify this intricacy by automating payment workflows and ensuring buyers and suppliers are aligned on payment terms and processes.
Against this backdrop, Stroup said AI is not just a “solution looking for a problem” but a tool for addressing customer pain points. For example, WEX has used AI to build fraud prevention — not just detection — systems that help drivers in its commercial fleet networks fuel vehicles without delays. Within three months of implementing these systems, WEX saw a 41% reduction in fraud instances, benefiting businesses and consumers.
Companies are under pressure to digitize their operations. Manual processes, such as paper checks or cumbersome bank transfers, are being replaced by faster, more reliable digital methods. Embedded payments are a natural extension of this shift, allowing businesses to offer a fully digital experience that enhances speed, transparency and efficiency.
Stroup said there are three primary benefits of embedded finance solutions: time, money and confidence. By embedding financial products directly into business workflows, companies can save time by reducing manual tasks, improve cash flow management, and gain confidence that they are making the right financial decisions. These benefits are applicable across industries, from small businesses to large commercial fleets.
Beyond payments, embedded finance can expand into lending or financing options, making it easier for businesses to offer customers solutions like financing for large purchases, such as new air conditioning units, she said. This not only benefits customers but also helps businesses increase conversion rates by removing financial barriers.
The technological infrastructure enabling embedded finance is sophisticated and diverse. Key technologies include APIs, cloud computing and open banking. These innovations are critical to creating the flexible, scalable platforms required for embedded finance to thrive, she said.
White labeling, which allows financial products to be embedded into a partner’s platform while maintaining their branding, is important, Stroup said. This is particularly true for financial institutions, which can offer tailored payment capabilities to their customers without needing to develop the underlying technology themselves.
WEX’s own closed-loop network, which allows the company to collect more data and offer specialized services, is an example of how embedded finance providers can use proprietary technologies to differentiate themselves, she said.
“At the end of the day, businesses are focused on solving their customers’ problems,” Stroup said. “Through embedded finance, you can solve your customer’s problems 10 times better than it was possible to before.”
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