Embedded finance startup Monite and Codat, a small business data application programming interface (API), have teamed up to incorporate accounts payable (AP) and accounts receivable (AR) capabilities into existing apps.
According to an AiThority report Tuesday (July 26), on average, small businesses use more than 40 apps to manage their finances and operations, from accounting, expenses and sales to forecasting and analytics.
That number is growing about 30% year to year, thanks to the number of new software tools for small- to medium-sized businesses (SMBs) coming on to the market, per the report.
“There is no shortage of great financial apps for SMEs,” said Ivan Maryasin, Monite’s co-founder and CEO. “What’s still missing are the ‘super apps’ that bring everything together — a financial OS created by neobanks or vertical SaaS companies to dominate the SME finance stack.
“Until now, the cost of building that platform was too high, too risky and just diverted capital that could be used elsewhere, draining resources and detracting from opportunities to scale and develop core value propositions.”
Monite and Codat’s partnership will allow Software-as-a-Service (SaaS) platforms and financial institutions (FIs) to integrate invoicing and billing capabilities into their apps to create a unified offering for businesses to manage their operations and finances.
“It’s incredible to see the quantity of platforms coming to market to help SMBs, but it can be time-consuming to manage and get the most out of them all,” said Pete Lord, CEO and co-founder at Codat. “Integrations like the ones that we’re enabling with Monite ensure that key financial data isn’t siloed and flows freely and automatically between systems — which means businesses can be managed from a single source of truth.
“This is another important step towards helping systems speak to each other, removing hours of painful admin and ultimately unnecessary barriers to growth.”
In March, Maryasin told PYMNTS that Monite’s API enables B2B firms to plug finance automation features into a simple API — giving any neobank, marketplace or vertical SaaS player the ability to offer invoicing, AP automation and expense management to their clients within their existing interface.
Related: Embedded Finance Streamlines Expense Management for EU SMEs
The Berlin-based FinTech, founded in 2020, covers the United States and most of the major markets in Europe, although the company said it plans to expand internationally in the future.
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