photo of Caleb Avery

Embedded Finance in 2023

There’s no doubt that 2022 brought some big changes to the world of payments and fintech. Some good… some a bit more difficult. Anyone who’s been actively fundraising for the last six months knows exactly what I’m talking about.

But alongside the macro-economic trends of tightening capital markets that are emphasizing actual revenue over potential revenue, we are also seeing a dramatic acceleration in the rise of payment monetization and embedded fintech, as both are seen as pathways to growing revenue.


In 2023, my big prediction is we will see a massive push from vertical software companies and ISVs to find new revenue streams and increase their margins. And, at Tilled, we’ll be on the front lines, enabling that trend through monetizing payments.


This time last year, I was mainly interested in seeing how fintech companies and payment facilitators would weather the storm we all knew was coming. Over the past 12 months, I’ve been pleasantly surprised to see the landscape change in a positive way.

While at the beginning of 2022, many of our potential customers were focused on growth at all costs, and we struggled to get them to concentrate on the increased margins that embedded payments could provide, in the last few months that has changed drastically. Our customers are now taking payment monetization much more seriously, and recognizing it as a strategic priority for the year ahead. I believe this is happening for a few reasons:

1. Revenue is no longer a nice-to-have, but a must-have.

In 2022, startups and SMBs realized that if they wanted to survive, they had to make money — not just raise it. As they begin their search for new revenue streams and improved margins, embedded finance and monetized payments is an attractive place to start.

2. It increases competitive advantage.

Vertical software companies aren’t the only ones that are tightening their belts and looking for increased revenue — their customers are as well. Monetized payments allows ISVs to discount (or even give away) their core product, while still retaining the same, if not better, margins. With payments as a part of their offering, they can go to market at a more competitive price point, while also providing more value for their customers.

3.  It will help in fundraising in 2023.

Many startups avoided raising money in 2022 over being forced to take money at a lower valuation. This year, as their runways shorten, they may not have the ability to put off fundraising any longer. As investors focus more on revenue, margins, and burn rates, anything a startup can do to improve in those areas will be attractive. Monetizing payments can increase revenue, improve margins, and slow down burn, giving startups a better chance at raising funds on the terms they’ve been looking for since last year.


At Tilled, we’re seeing this play out every day with our partners. Although we haven’t changed much about what we’re doing, we’re seeing greater implementation of our solution much faster, and doing all we can to help our partners achieve their goals.

In 2023, we’re doubling down on our ability to help our partners drive adoption of their platforms alongside integrated payments. While 2022 was about attracting, acquiring, and launching with as many partners as possible, this year we’re focusing on helping those partners scale and improve their business. Monetizing payments is already a competitive advantage in and of itself, but when you do it with Tilled, you have an extra hand helping you scale your business.

How are we doing this? One big way is through our new focus on revenue operations. At Tilled, we’re helping our partners optimize their customer journey, and providing support for a cohesive strategy that blends sales, marketing, finance, and customer success.

We’re doing this because at the end of the day, we recognize that PayFac-as-a-Service at its core is a margin opportunity for our software partners. Unlike other options, which come with substantial costs in both time and money, Tilled’s PayFac-as-a-Service solution can be implemented quickly and easily, with no cost.

 When you work with Tilled, you’re gaining a partner committed to helping you take your revenue to the next level. Get started with PayFac-as-a-Service by reaching out to our sales team today!

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