Adyen's report reveals market opportunity for SaaS platforms

The demand for Embedded Finance for small and medium-sized enterprises (SMEs), which are usually underserved by traditional financial institutions, expanded beyond payments. Merged with the market’s growth, this delivers an opportunity for Software-as-a-Service (SaaS) platforms to integrate into their offerings more optimised financial products such as business accounts, loans, and issued cards. Considering the typical margins of these products, most platforms present an opportunity to multiply their current revenues by up to three or four times, according to the report.

When providing their opinion on the research, representatives from Adyen underlined that embedding financial products can allow SaaS platforms to deepen their user relationships while unlocking additional revenue streams by addressing SMEs’ disregarded financial needs and demands. The company’s research highlights an opportunity for SaaS platforms to implement Embedded Finance and remain competitive in an ever-evolving market, as 50% of SMEs report a high likelihood of leveraging a full suite of products soon.

At the same time, the analysis revealed a high tendency from SMEs to consume a broader range of financial services from within their SaaS platforms, especially loans extending beyond cash advances or current accounts integrated into receivables and payables workflows. In addition, the report found out that platforms are now generating over 50% of their revenues from Embedded Payments and Finance, with Adyen and Boston Consulting Group mentioning that platforms must consider integrating financial products into their offerings.