Embedded Payments in ERP and Business Software

Trend Overview: How Embedded Payments Are Transforming ERP and Business Software

Payments are no longer a separate checkout destination – they are being embedded directly into the systems where businesses already work.

In 2026, more B2B transactions will happen seamlessly inside Enterprise Resource Planning (ERP) platforms, Customer Relationship Management (CRM) tools, and industry-specific software, rather than via standalone payment portals.

The vision is to collapse silos into a single source of financial truth. Instead of jumping from an invoicing system to a payment gateway, a user can initiate and reconcile a payment right within their ERP or software-as-a-service application. This embedded approach makes payments almost invisible – an integral, smooth step in the workflow rather than a distinct task.

The benefits are immense: a unified user experience, less data re-entry, real-time sync of payment data into accounting, and new revenue streams for software providers.

Independent Software Vendors (ISVs) and vertical SaaS companies have realized that by integrating payments, they can control the user experience, speed up onboarding, and take a slice of payment revenue. No wonder PayFac as a Service (PFaaS) providers that enable ISV’s to become their own PayFac without the regulatory or technical overhead, are expanding so quickly.

Analyst estimates project embedded payments will drive trillions in volume in the coming years, as software-led payments become the norm for mid-market and enterprise transactions.

Industry Impacts: Where ERP and Vertical Software Gain Through Embedded Payments

Enterprise ERPs (Manufacturing, Distribution, etc.): Large manufacturers and distributors running on ERPs (like SAP, Oracle, or NetSuite) have a keen interest in embedded payments.

Their pain point has been fragmented order-to-cash processes – invoice in the ERP, payment in a separate bank portal, then manual reconciliation back.

Embedding payments into ERP turns it into a one-stop-shop: the ERP not only generates the invoice but also processes the payment and closes the loop in real-time.

This solves data silos and errors, providing a single source of truth for finance. It also creates a commercial opportunity for ERP vendors to offer “payments modules” and earn transaction revenue.

Vertical Software (Healthcare, Insurance, Legal, etc.): Industry-specific platforms are racing to embed payments tailored to their workflows. For example:

Healthcare practice management systems can embed patient payment collection (co-pays, invoices) directly in the software a clinic uses to schedule and bill – eliminating the need for a separate card terminal or online portal.

Insurance policy administration or agency management systems can build in premium payment collection, pre-authorization, and premium financing options.

Real estate management platforms handling rent payments, maintenance fees, etc., are embedding payment capabilities like online rent pay, enabling faster payments and fewer late payments.

Construction project management software can enable subcontractor payments to address the reliance on paper checks and the difficulty of tracking who paid what.

In all these cases, the pain point of professionals bouncing between a management system and external payment systems is resolved. The opportunity is twofold: a better user experience (leading to higher retention for the software vendor) and a new revenue line via payment facilitation. Notably, SMBs using embedded payments have seen 25–50% revenue growth boosts due to increased efficiency and value-added services – a compelling figure driving interest across industries.

Technology Roadmap: SDKs, APIs, and PFaaS Integrations for Embedded Payments

Integration and SDKs: To power embedded payments, PayFacs and PFaaS providers (Payment-Facilitation-as-a-Service) must offer easy integration tools – think robust SDKs, flexible APIs, and drop-in UI components that software companies can quickly embed.

The tech roadmap should prioritize developer experience: sandboxes, comprehensive docs, and pre-certified modules for popular software platforms (e.g., plugins for SAP, Salesforce, or WooCommerce).

Additionally, client implementations, often require custom development to go live, identifying a systems integrator partner that can provide flexible engineering bench to accelerate client launches can unblock deals and accelerate revenue.

This is crucial because ISVs will choose the payment partner that makes integration fastest. In fact, the rise of PFaaS is all about simplifying the journey for ISVs to become payment-enabled – collapsing the time to market for new PayFacs from months to weeks, and onboarding merchants in minutes instead of weeks.

Unified Token Vault & Reconciliation – Provide secure storage and auto-sync of transactions across systems for single-source-of-truth reporting.

Orchestration & Partnerships: For processors and acquirers, embracing PFaaS models this means building out multi-tenant merchant onboarding systems, sponsor bank compliance frameworks, and maybe even acquiring or partnering with fintechs that provide managed PayFac infrastructure.

Payment orchestrators can also play a role by connecting ISVs to multiple back-end processors seamlessly. An orchestrator might offer an ISV a single integration that in turn can route transactions across, say, Stripe, Adyen, and Worldpay – valuable if the ISV’s customers have varied needs. Orchestrators also need to ensure support for embedded scenarios like split payments or marketplace payouts (common in verticals like travel or gig platforms).

Infrastructure & Compliance: Embedded payments demand that PayFacs handle onboarding, risk, and compliance at scale on behalf of software partners.

Technology priorities include scalable merchant onboarding workflows with API-driven KYC/KYB checks so that end-merchants of an ISV can sign up inside the ISV’s app and start transacting immediately.

Capabilities around tokenization and vaults are also key – many software platforms want to save customer payment methods for reuse, so the PayFac’s infrastructure must provide secure vaulting that the software can tap into via API.

Additionally, the PayFac/processor needs strong risk monitoring tools, since they are effectively underwriting thousands of small merchants under each ISV. PFaaS platforms address this by handling risk, compliance, and settlement under the hood, letting the ISV focus on UX. We’re also seeing traditional processors incorporate compliance APIs – for example, automated PCI compliance workflows or integrations to sanction screening – so that ISVs can meet regulatory obligations without heavy lifting.

Go-to-Market Acceleration for Embedded Payment Platforms

To capture this trend, payment providers are leveraging PFaaS offerings as a go-to-market accelerator. By providing a turnkey PayFac model along with a trusted implementation partner, they enable hundreds of new software companies each quarter to start monetizing payments.

For PayFacs, a major GTM lever is showcasing success stories: e.g., a case where an ISV in the fitness industry embedded payments and grew revenue by 30%. Marketing should highlight how embedded payments differentiate platforms, drive volume, and how partnering with a PFaaS platform collapses complexity.

From a sales standpoint, targeting mid-market ISVs in industries ripe for integration (like those mentioned above) and offering a revenue-share model can quickly onboard new partners.

In summary, the technology roadmap and business strategy for payment firms are tightly interwoven here: simplify integration, handle the heavy lifting (compliance, risk), and empower software companies to embed payments. Those that succeed will become the de facto payment engines behind a vast array of industry software, capturing the long tail of B2B transactions.

Praxent helps payment companies power the next wave of embedded finance, where payments fit natively into workflows. From accelerating integrations, custom client implementations, SDK development, to ERP integration and onboarding automation, we bridge the gap between technology, compliance, and experience so your partners go live faster and deliver seamless payment experiences.

Learn more about Praxent’s B2B payments technology consulting and engineering solutions.

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Frequently Asked Questions

1. What are embedded payments?
Embedded payments allow businesses to initiate, collect, and reconcile payments directly inside ERP, CRM, or vertical software systems—eliminating the need for external portals.

2. Why are ISVs adopting embedded payments?
ISVs adopt embedded payments to control the user experience, speed up onboarding, remove workflow friction, and generate new revenue through payment facilitation.

3. What technologies power embedded payments?
Embedded payments rely on SDKs, flexible APIs, token vaults, real-time reconciliation, and PFaaS infrastructure that simplifies compliance and onboarding.

4. How do embedded payments improve ERP workflows?
By consolidating invoicing, payments, and reconciliation inside the ERP, businesses remove data silos, reduce errors, and achieve real-time financial visibility.

5. What is PayFac-as-a-Service (PFaaS)?
PFaaS enables ISVs to monetize payments without becoming full PayFacs, providing prebuilt KYC/KYB, risk, compliance, onboarding, and settlement infrastructure.

6. How does merchant onboarding work in embedded payments?
Embedded payments use API-driven KYC/KYB workflows that allow sub-merchants to sign up directly inside the software and begin processing payments instantly.

7. How do embedded payment systems handle reconciliation?
Embedded payments rely on unified token vaults and auto-sync layers that push transactions to ERP, CRM, or accounting platforms for real-time reconciliation.

8. What is a PayFac?
A PayFac (Payment Facilitator) is a provider that enables software platforms to accept payments on behalf of their merchants. Instead of every business applying for its own merchant account, the PayFac handles onboarding, KYC/KYB, risk, settlement, and compliance—allowing merchants to start processing payments quickly.