Generative AI is rewriting the competitive rules for the software as a service (SaaS) and vertical software industry. Build cycles are compressing. New competitors—or in-house teams—can more easily match features. AI agents may automate work traditionally done on SaaS platforms, disrupting pricing and economics.

But while AI is fueling competition, it’s also expanding what software companies can build. That opens doors to larger markets and greater value—for software companies that succeed in making their platform essential to clients’ core operations, rather than a replaceable tool. And few things are more essential than helping clients seamlessly manage payments.

Embedding payments allows clients to accept, manage and transfer funds without ever leaving your platform. It has the potential to drive growth through new revenue opportunities, deeper client relationships and proprietary data—but only if you deliver accurate, reliable, compliant payments. A provider with expertise in payments, compliance and fraud prevention can help you build an effective embedded payments strategy.

How embedding payments helps overcome reduced switching costs

Changing software providers has traditionally come with friction: exporting data, retraining staff and rebuilding integrations. If AI can assist with those tasks, switching costs fall. 

Embedding payments helps you continue to drive retention without relying on legacy friction. When your platform is where your clients receive revenue, hold funds, make payouts, automate reconciliation and access seamless financial reporting, it becomes infrastructure critical to day-to-day operations. The client experience provides value that’s hard to replicate—efficient onboarding, low-friction fraud controls and real-time payments.

The opportunity is significant: The total addressable market for embedded finance in the U.S., Canada and Europe is estimated at $185 billion across payments, capital solutions, accounts and card issuing, according to Boston Consulting Group. 

Creating reliable payments solutions

While embedding payments can help create a competitive moat, it also creates risk. Your clients are trusting your platform with business cash flows. They expect seamless transactions—and no missteps.

Embedding payments requires strong fraud prevention practices, as well as the ability to keep up with emerging threats. It also requires measures to ensure transactions are accurate, comply with regulations and are authorized by your clients—particularly if there’s potential for agentic AI to transact on a client’s behalf.

Infrastructure you can build on

Building embedded payments in-house is complex, requiring significant investment in infrastructure and regulatory compliance.  Designing payment flows that match how your clients operate, structuring accounts for third-party funds and managing compliance across markets are decisions with long-term consequences.

Strong embedded payments infrastructure takes:

• Stability and liquidity: The financial institution behind your payments experience matters—both to your direct clients during procurement due diligence and to their customers whose money moves through your platform. J.P. Morgan offers FDIC-insured deposit accounts and a robust balance sheet to give everyone in the chain confidence.
• Safety and fraud prevention: Platforms need a banking provider that can help them keep up with evolving payment risks and sophisticated fraud vectors—including AI-driven threats. J.P. Morgan embeds critical safeguards directly into the payments experience.
• Regulatory compliance: Payment regulations differ by market, transaction type, and the management of client funds. J.P. Morgan solutions support compliant and auditable fund handling as your business grows.¹
• Global scale: The right provider handles complex payments at scale, with stability and global reach to support where your platform is going, not just where it is today.
• Tech stack: Modern API integrations and robust platforms are essential for developers to integrate client payments.
• Flexible solutions: No two software platforms have the same payment flows, customer bases or business models. J.P. Morgan works with SaaS and vertical software companies across industries and offers configurable solutions to match your operations.

J.P. Morgan processes

$9.8T

in daily payments

160+

operating in more than 160 countries

120

currencies³

Disclaimer

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of J.P. Morgan, its affiliates, or its employees. The information set forth herein has been obtained or derived from sources believed to be reliable. Neither the author nor J.P. Morgan makes any representations or warranties as to the information’s accuracy or completeness. The information contained herein has been provided solely for informational purposes and does not constitute an offer, solicitation, advice or recommendation, to make any investment decisions or purchase any financial instruments, and may not be construed as such. 
 
The information in this document may be based upon management forecasts supplied to us and reflects prevailing conditions and our views as of this date, all of which are accordingly subject to change. JPMorganChase’s opinions and estimates constitute J.P. Morgan’s judgment and should be regarded as indicative, preliminary and for illustrative purposes only.

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