SMBs view embedded finance as a starting point, not the end goal. They expect constant innovation, streamlined tools and proactive support from tech partners, with financing tools playing a central role in their evolving digital ecosystems.

SMBs that once used management software solely to streamline internal workflows are recognizing its capacity to reduce friction in customer interactions as well. This dual purpose is elevating the role of technology in their business strategies.

In 2025, businesses are looking to shift their focus from survival to smart, finance-driven expansion. As SMBs gear up for growth, they view embedded finance as critical to fueling their performance and revenues.

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Small- to medium-sized businesses (SMBs) are entering a new era in which embedded finance is not just a software feature but also a fundamental requirement for growth and competitiveness.

According to Worldpay’s 2025 Merchant Insider Report, 9 in 10 small businesses now consider access to embedded financial products and services essential to their operations. This shift is driving increased investment in management software, with embedded capabilities topping the list of priorities.

By integrating payments, lending and other financial services directly into business platforms, embedded finance can help companies move faster and make smarter decisions. Moreover, as consumer expectations rise and industries evolve, embedded finance is establishing itself as a key engine of innovation. These capabilities are setting a new standard for what business software must deliver.

As SMBs Seek Growth, Embedded Finance Tools Prove Crucial

In 2025, businesses are looking to shift their focus from survival to smart, finance-driven expansion. As SMBs gear up for growth, they view embedded finance as increasingly critical to fueling their performance and revenues.

SMBs are seeking growth this year — and looking to software to achieve it.

According to the Worldpay study of SMBs, software is evolving from a back-end utility to a growth engine, driving profitability, financial strategy and customer engagement for these businesses. The study revealed that on the heels of widespread economic uncertainty in 2024, 91% of SMBs say they are ready for growth this year. As a result, companies are planning to increase their investments in software — not just for cost savings, but also to unlock new revenue streams and accelerate scaling. 90% of SMBs say access to financial products and services is critical to their operations.

SMBs already rely heavily on their management software, with 95% reporting that these digital tools are key to their performance. However, as businesses shift from defensive to proactive strategies this year, they are rethinking the role of software. Not satisfied with business technology simply for cost-cutting and operational efficiency, SMBs are seeking software to power expansion.

SMBs see embedded finance as vital to their success.

Central to this shift is embedded finance. This capability integrates financial services like payments, lending and banking directly into business software, effectively turning platforms into comprehensive financial command centers. According to Worldpay, 90% of SMBs report that access to such financial products and services is critical to their daily operations. Companies rank financial tools second only to data analytics as the most important integration available from their software providers.

The growing recognition of their importance means that embedded capabilities are now a top priority for investment. This development is particularly evident in sectors like healthcare, where frequent innovation is needed, and in retail and logistics, where seamless customer experience and supply chain optimization are paramount.

Embedded finance tools can yield sales increases for SMBs.

According to a May study, SMBs that used embedded financing tools integrated into their eCommerce, payments and technology software saw 25% to 50% sales increases, on average. This finding emphasizes the importance of SMBs’ access to embedded software not only to offer financial options to their customers but also to obtain financing themselves. This access can free SMBs to grow rather than simply get by.

How Embedded Software Helps SMBs Compete

SMBs that once used management software solely to streamline internal workflows are recognizing its capacity to reduce friction in customer interactions as well. This dual purpose is elevating the role of technology in their business strategies.

Software is serving dual imperatives for SMBs.

65% of businesses are open to switching software providers, up from 55% in 2024. Where businesses once relied on software mainly to automate routine tasks like accounting, payroll and inventory management, the impact of software on customer experience has also grown. Customer expectations are higher than ever, and businesses need technology solutions that help them keep up with these demands. As a result, software isn’t just about streamlining internal operations anymore — it’s become essential to how businesses engage with customers. This includes not only delivering personalization but also enabling companies to meet customers wherever and however they choose to transact. Having the right software can determine a company’s competitiveness.

These dual demands are driving up SMBs’ software expectations.

Ultimately, businesses want platforms that streamline customer transactions and essential financial services, saving time and reducing complexity. These dual needs are driving businesses to seek management platforms with embedded payments and financial tools. Such integrated solutions not only simplify daily operations and decision making but also provide insights for smarter strategies. By consolidating firms’ technology needs under their existing platforms, embedded financing tools meet this demand.

Worldpay research reveals that SMBs’ top three software pain points are the ability to change aspects and integrate new tools, the ease of training new staff and the software’s simplicity of use. These requirements are driving a willingness to switch providers, as 65% of businesses are open to changing software platforms, and 1 in 5 are actively seeking better-suited platforms. The appetite for switching is highest when current solutions fail to deliver on these critical needs.

Conversely, however, when SMBs are satisfied with their digital tools, they stick with their tech providers. In 2024, 48% of SMBs reported being unlikely to switch software provider platforms because of their satisfaction with their payments. That share was up from 39% in 2023.

SMBs that use embedded finance are more satisfied with their tech platforms.

PYMNTS Intelligence research finds that 56% of microbusinesses were not highly satisfied with credit tools’ availability in 2024. Moreover, 37% of small businesses and microbusinesses reported being highly likely to switch to a payment provider that offered embedded lending, a subset of embedded finance. That share nearly doubled to 69% among those that had used embedded lending in the last year.

Moreover, small businesses are more satisfied with financing tools when they are embedded. The same study found that 72% of microbusinesses and small businesses that used embedded lending were highly satisfied. In contrast, only 57% of those that used other types of lending said the same.

Embedded Finance: Innovation Catalyst

SMBs view embedded finance as a starting point, not the end goal. They expect constant innovation, streamlined tools and proactive support from tech partners, with financing tools playing a central role in their evolving digital ecosystems.

SMBs expect their tech partners to be continually innovating.

For SMBs, embedded payments aren’t a final feature — they’re the foundation for ongoing innovation. Nearly half of businesses now expect their software providers to continually upgrade platforms with smarter automation and new financial tools, while 90% want to be contacted about emerging solutions. This expectation is especially pronounced in fast-moving sectors. In healthcare, 45% of firms require frequent innovation to keep pace with regulatory and operational change. In retail, businesses are focused on enhancing omnichannel experiences that unify online and in-store interactions. Logistics providers, meanwhile, are prioritizing automation and efficiency across complex supply chains. Across these industries, embedded finance is no longer just a convenience — it’s becoming a competitive edge. 90% of SMBs want their tech providers to alert them when new solutions are available.

Recent launches show how tech providers are delivering real innovation.

Visa, for example, partnered with Worldpay in March to roll out a new Click to Pay checkout feature in the United Kingdom, streamlining online transactions for merchants and customers. The new feature enables one-click checkout without the need to manually enter card details, making the payment experience faster and more seamless. Innovations like these reflect growing expectations that tech partners not only maintain reliable systems but actively drive what’s next.

Stay Competitive and Unlock Growth Opportunities With Embedded Finance

In today’s highly competitive landscape, embedded payment technology is not just a convenience but a strategic imperative for small businesses. Using embedded finance empowers SMBs to reduce friction, enhance customer satisfaction and accelerate growth by integrating financial capabilities directly into their core operations. As customer expectations continue to rise, businesses that adopt embedded payment solutions can position themselves for long-term success and innovation.

To capitalize on this transformative opportunity, small businesses should consider the following:

Embedded finance drives growth. Ninety percent of SMBs recognize the role of financial tools. Embedded payments can boost sales by up to 50%, helping businesses shift focus from survival to growth.

Ninety percent of SMBs recognize the role of financial tools. Embedded payments can boost sales by up to 50%, helping businesses shift focus from survival to growth. Simplifying financial operations reduces friction. Embedded tools increase satisfaction and loyalty by streamlining credit access and consolidating technology platforms. These changes make it easier for SMBs to manage cash flow and investments.

Embedded tools increase satisfaction and loyalty by streamlining credit access and consolidating technology platforms. These changes make it easier for SMBs to manage cash flow and investments. SMBs stick with providers that offer seamless payment experiences. Nearly half of SMBs report that they are unlikely to switch providers when satisfied with payment tools, highlighting the importance of integrated, user-friendly financial services.

Nearly half of SMBs report that they are unlikely to switch providers when satisfied with payment tools, highlighting the importance of integrated, user-friendly financial services. Innovation is essential for ongoing success. SMBs expect continuous upgrades and proactive financial solutions from their tech partners. Ninety percent want alerts about new offerings that can enhance business operations.

By adopting embedded finance technology, small businesses can unlock new growth opportunities, deepen customer relationships and stay ahead. Now is the time to embrace embedded finance as a core pillar of business strategies for sustained success.