Nearly ¾ Of SaaS PM’s Plan On Implementing Embedded Finance - According To Weavr Whitepaper

Cloud
21.05.2024 09:40 am

Embedded finance leader Weavr has revealed in new research that the overwhelming majority of business-to-business SaaS product managers plan to adopt and utilise embedded finance as part of their near-term roadmap.

The new research, entitled ‘The next step for B2B SaaS’, captured the following key findings:

55% of B2B SaaS product managers believe that embedding finance will provide them with a clear competitive advantage.
74% of B2B SaaS product managers have a built-in payment wallet on their roadmap.
62% of B2B SaaS product managers say they plan to implement both built-in payment wallets and debit cards, while only 4% have done so already.
33% of CPOs see reducing churn as their most important feature driver

Examples of use cases for embedded finance in B2B SaaS products include spendable employee benefits, modernisation of expense management, integrated bill payment for IT and cloud subscription management, and automation of batch payments in accounting tools. Embedded finance involves non-fintech apps and products integrating payments and other regulated financial features seamlessly within their application branding and user experience.

The new findings are based on research that took place in February 2024. A total of 250 UK-based product managers in B2B SaaS companies were interviewed as part of the research. The information, which is included in a new white paper, highlights rapidly growing awareness of embedded finance within this sector and a likely escalation in competition to bring such new product features to market.

The white paper underlines the key drivers for embedding finance across B2B SaaS, in addition to the timeframes SaaS product managers have established for their projects. Notably, the research confirms the compelling business case for embedding financial capabilities through elements such as payment wallets and debit cards within B2B SaaS services.

Speaking on the white paper, Co-founder and CEO of Weavr, Alex Mifsud commented: “In a challenging economic market, venture-capital-invested SaaS businesses have found it difficult to increase revenue by throwing money at customer acquisition. To secure renewed funding, they must now demonstrate a clear path to profitability to attract new investment and continue their paths. Our research shows that embedded finance technology is becoming suitable for mainstream adoption at the right time to help companies access the customer growth and new revenue streams that the opportunity presents”.

According to the research conducted by Weavr, 25% of B2B SaaS product managers report that embedded finance features would help attract new business customers. Over one-third of Chief Product Officers surveyed also believe that embedded finance features will help their product generate higher revenue per user.

The report forecasts that embedded finance solutions are soon to become an essential part of SaaS offerings used in business contexts. Rather than being limited to the more adventurous fintechs, embedded finance is set to become accessible as an innovation strategy to the mainstream of non-financial B2B SaaS product businesses, delivering much-needed growth in users and revenue in today’s uncertain economic conditions.

According to the white paper, the top three reasons B2B SaaS companies cite for adopting embedded built-in payment wallets, include improving user engagement (28%), increasing the number of paying users (26%) and enhancing revenue per user (25%).

Alex Mifsud said: “Product managers tasked with delivering SaaS products are leading the way rather than following: they’re seeing the value of financial services being truly embedded into their software, making embedded finance a strategic action to access new revenue sources. As we see more SaaS businesses realise the value - to their customers, and to themselves - of becoming powerful distribution channels for B2B financial services, we predict this trend will continue to accelerate”.

Following the insights from the whitepaper, Weavr will continue its efforts to help businesses effectively embed financial capabilities. The company's embedded finance solutions are aiding businesses across the B2B SaaS sector and beyond in creating new possibilities and achieving higher levels of efficiency, growth and customer engagement.