According to a 2022 report by Bain & Company and Bain Capital, 65% of SMBs would consider switching to a software platform that includes embedded financial services, particularly if it improved efficiency or reduced costs. This underscores how vital embedded finance has become to product stickiness and retention. Embedded finance isn’t just a buzzword, it’s become the guarantor for user retention and revenue growth in vertical SaaS. It’s a path to genuine competitive advantage and if you’re not offering it, your competitors probably are.
From contractors to solar panel businesses, users want to send invoices, get paid, manage bills, and track cash flow without jumping into third-party tools. Here are five embedded finance features that every vertical SaaS provider should be prioritizing:
1. Branded Invoicing and Quote-to-Cash Flows
A slick, on-brand invoicing experience keeps users in your platform and boosts perceived professionalism. But it goes far beyond a PDF generator. Your users need:
- Recurring invoices and subscriptions
- Smart tax handling (VAT, GST, local rates)
- Status tracking (sent, viewed, paid)
- Payment links embedded directly in the invoice
- Quote-to-invoice conversion
Why it matters: Every invoice sent from your platform is a chance to reinforce your value. More importantly, it opens the door to monetizing each transaction through processing fees or financing commissions – turning what was once a cost center into a predictable revenue stream.
For platforms operating at scale, this can translate to thousands in additional monthly recurring revenue. Done right, it also creates a new opportunity to monetize each transaction through payment processing fees or invoice financing.
2. One-Click Payments & Reconciliation
Getting paid should be seamless. Embedding payment options (like ACH, SEPA, card) directly into the workflow means faster collection and happier users. But the real magic happens when those payments automatically reconcile:
- Match payments to invoices
- Auto-update payment status
- Flag mismatches or anomalies
Why it matters: Users don’t want to chase payments or log into Stripe. In fact, studies show that businesses using embedded payment tools experience up to 40% faster payment cycles and save an average of 3–5 hours per week on manual reconciliation tasks. That time savings directly translates into more bandwidth for growth-focused work and fewer cash flow surprises. They want clear, fast answers to: “Who’s paid me?” and “What’s outstanding?” In fact, platforms that offer native payment reconciliation see up to 40% faster payment cycles.
3. Accounts Payable Automation
While AR is critical, many vertical SaaS platforms overlook AP. Helping users pay their bills with built-in logic is a powerful stickiness tool:
- Upload bills or ingest via email/e-invoice
- OCR for auto-populating data
- Multi-step approval workflows
- One-click bill pay (via ACH, card, bank rails)
- Payment scheduling and reminders
Why it matters: The vendors that power your users’ businesses deserve frictionless payment flows. And when you enable that, you own a deeper part of their workflow. Platforms offering full AP automation report 20–30% higher user retention.
4. Embedded Invoice Financing
Not every user can wait 30 days to get paid. With embedded invoice finance, platforms can integrate third-party lending partners to offer working capital without becoming a lender themselves:
- Users advance part of their invoice amount instantly
- Platforms enable the flow and earn a cut of the finance fee
- Partners handle compliance, credit checks, and underwriting
Why it matters: For industries with seasonal revenue – like pool services that ramp up in summer or snow removal companies working in winter – invoice finance can be a lifeline. One pool care SaaS platform integrated invoice financing through a partner and saw a 25% jump in off-season engagement, with users opting to advance payments and invest early in staffing and supplies. This kind of support not only improves cash flow for users but also boosts platform retention during their quietest months.
5. Accounting Integrations
Even with robust finance workflows, your users still need data to sync with QuickBooks, Xero, or their ERP. Ensure your platform offers:
- Bi-directional sync
- Chart of accounts mapping
- Reconciliation-ready exports
- Support for multi-entity structures
Why it matters: Accounting isn’t just for tax time. It’s how users close the books, generate reports, and stay audit-ready. Without proper integrations, finance workflows stall – and users churn.
Final Thoughts
Vertical SaaS platforms are in a prime position to offer embedded finance features that actually solve user pain points. The platforms that win won’t be the ones that add payment buttons for the sake of it – but the ones that build end-to-end flows users love.
And here’s the best part: you don’t have to build it all from scratch. With infrastructure like Monite, you can go live with AR, AP, payments, and invoice finance in weeks, not months and turn operations into a revenue channel.
Want to see what your platform could offer? Book a demo and explore what embedded finance can do for your users…. and your bottom line.