In this season of #TheShot, we look at embedded payments and embedded finance from the side of software platforms. For many small businesses, software is bought first and payments follow, which puts SaaS platforms in a strong position to own the checkout and the revenue that comes with it.
Our guest is Charlotte Al Usta, Principal at Flagship Advisory Partners, where she advises payments, fintech and software companies. She explains why Europe is behind the US on embedded payments, how platforms progress from referral partnerships to full PayFac status, and why lending is the next product after payments.
For PSPs, PayFacs, ISOs and ISVs, embedded payments change who owns the merchant relationship. Software platforms that embed payments need infrastructure that lets them start simple and take on branding, commercials and risk step by step, and the providers that serve them have to support every stage of that journey.