Embedded Payments: What They Are and Why They Matter for B2B

If you sell B2B, you’ve probably felt the friction between “quote accepted” and “money received.” Embedded payments remove that detour. Instead of redirecting customers to an external gateway or asking them to arrange a bank transfer, you embed payment functionality inside your own experience - on your website, in your invoice portal, or via your sales team. The result is a streamlined experience for buyers and faster payments for you, with more control over the payment process and fewer manual interventions for finance.

We’ll explain what embedded payments mean in plain English, how embedded payments work in practice, the key benefits for B2B businesses, the common challenges to plan for, and a simple route to implement embedded payment capabilities in your platform. Along the way, we’ll highlight where Open Banking and trade credit fit - and how to keep transaction fees down without compromising user experience.

What are embedded payments?

Short definition: Embedded payments are payment capabilities built directly into your product or workflow so buyers complete transactions without leaving your interface.

Rather than bolting on a hosted checkout that looks and feels separate, you embed payment features - like bank pay (Open Banking), cards, or trade credit - where they make sense in the journey. Your buyer stays on your domain, sees payment confirmation in your UI, and you keep better oversight of payment details, reporting and reconciliation.

Embedded vs integrated payments (quick comparison):

• Integrated payments connect to a third‑party gateway or hosted page. It’s joined to your system, but still feels external and often involves redirecting customers away from your site.
• Embedded payments keep the payment process native to your product. You present payment options, capture details (securely via your provider), manage transactions, and reconcile payments inside your own flow. It’s not just a convenience - it reduces friction and typically increases conversion rates.

Examples:

• Invoice portal: A buyer opens your invoice link and can pay by bank (Open Banking) or request net terms in the same view - no switching tabs or typing long references.
• B2B ecommerce checkout: A wholesaler offers local payment methods and trade credit alongside cards; the entire flow lives inside the storefront.
• Sales‑assisted payments: Your sales team triggers a payment request while on the call; the buyer completes it in an embedded window.

Where embedded finance fits: Embedded payments sit within the broader trend of embedded finance - offering financial services (like financing, insurance, or wallets) inside non‑financial products. For B2B suppliers, embedded payment solutions are often the first, most impactful step.

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How do embedded payments work in practice?

While the technology under the hood is complex, the workflow can be simple:

1. Present payment options in‑flow. Your platform shows bank pay (Open Banking), card, or trade credit options at the right moment (checkout, invoice, or sales link).
2. Use a payment provider/PayFac. Behind the scenes, your provider handles KYB/KYC, security (including PCI DSS responsibilities), SCA, payment processing, settlement and payouts.
3. Keep buyers in your UI. The buyer authenticates and confirms in a secure component that’s visually part of your product. No redirects, fewer drop‑offs.
4. Receive funds. For bank payments, funds clear quickly with low fees; for trade credit, you can get paid upfront while your buyer spreads the cost over time.
5. Reconcile payments automatically. Payment status, fees and payouts sync back to your systems (e.g., Xero), reducing manual effort for finance teams.

Typical B2B flows

• Checkout: Offer bank pay for faster payments and lower costs, alongside cards for flexibility; add trade credit for larger baskets to lift conversion and average order value.
• Invoices: Embed a “Pay Now / Pay Later” button in your invoice emails and portal; confirmation and receipts are generated automatically.
• In‑person payments: For events or counter sales, embed payments in your POS flow so staff don’t juggle multiple vendors or terminals.

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Benefits of embedded payments for B2B businesses

Embedded payments change what happens between “order placed” and “cash received.” Below are the practical upsides suppliers see most often - measured in conversion, days-to-cash, costs, and fewer headaches for finance.

• Higher conversion & fewer drop‑offs. Removing redirects and extra steps improves user experience and keeps customers in your flow - so more baskets convert and more invoices get paid first time.
• Faster cash flow. Open Banking enables faster payments with clear references; trade credit can boost sales without harming cash flow when you’re paid upfront.
• Lower transaction costs. Bank payments can reduce or eliminate card fees on eligible transactions; fewer failed transfers save operational time.
• New revenue streams. Depending on your provider and business model, you may open up additional features or payment margins - turning payments innovation into a contributor, not just a cost centre.
• Better operational efficiency. Automated reconciliation and clearer payment workflows mean fewer tickets, less manual intervention, and more control for finance.
• Improved customer retention. Seamless transactions and appropriate payment methods (including local payment methods where relevant) encourage repeat business and reduce friction at re‑order.

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Challenges and considerations before adopting embedded payments

The upside is clear, but it pays to get the plumbing right before you go live. Start with compliance and risk: confirm how KYB/KYC will be handled, what SCA looks like in your flows, and who owns which parts of PCI DSS. Be precise about refunds, chargebacks and dispute handling so there are no surprises when volumes rise.

Next, decide whether to build or partner. Full control can be attractive, but the real cost is ongoing - maintenance of rails, compliance updates and support tooling. Most B2B platforms partner so they can ship quickly and keep teams focused on the core product.

Your data and reporting setup matters just as much as the checkout. Finance will need transparent payout statements, fee breakdowns and ageing views; agree the exports, webhooks and dashboards you’ll rely on before switching anything on. In parallel, design the support model: define who answers payment queries and manages failed mandates and processes account changes, plus you should set clear SLAs so customers aren’t bounced between teams.

Finally, treat rollout as change management. Give sales, support and finance simple playbooks, then track the numbers that prove progress - conversion rate, DSO, payment-method mix, cost-to-collect, refunds/chargebacks and CSAT. With those foundations in place, embedded payments won’t just work; they’ll scale.

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Implementing embedded payments in your B2B platform

Treat this like a rollout, not a rebuild. Start where the impact is biggest, pilot → measure → scale, and choose methods that match your buyers and AOVs.

1) Map your payment workflows. Identify where you’ll embed payments: checkout, invoice portal, sales‑assisted links, and in‑person payments. Note buyer segments, AOVs and preferred payment methods.

2) Choose payment capabilities. Balance flexibility and cost:

• Bank pay (Open Banking): fast, low‑cost, excellent for high values; reduces card present/online fees where appropriate.
• Trade credit/net terms: lift conversion on larger orders by allowing businesses to buy now and pay later - without risking your cash flow if you’re paid upfront.
• Cards & wallets: keep for edge cases and international buyers; consider where local payment methods matter.

3) Select the right payment provider. Look for:

• Embedded components that live in your UI (no clunky redirects);
• Robust reconciliation (payout statements, fee breakdowns, webhooks to reconcile payments automatically);
• Simple pricing (clear transaction fees and settlement timelines);
• Coverage (UK Open Banking, domestic rails, and relevant local methods);
• Risk & compliance support (SCA, PCI DSS scope, fraud tooling, PayFac capabilities).

4) Implement with minimal effort. Start with the highest‑impact flow (often invoices) before scaling to checkout and sales‑assisted journeys. Pilot, measure, then expand.

5) Track the right metrics. Conversion rates, average order value, days sales outstanding, cost‑to‑collect, payment mix, refunds/chargebacks and customer satisfaction.

Where iwocaPay fits (supplier‑first)

• Pay Now (Open Banking): Add a fee‑free bank payment option at checkout, on invoices or via your sales team. You keep the embedded experience; we handle the rails.
• Pay Later (trade credit): Offer 30‑day or 90‑day terms, or 12 monthly instalments, to UK limited companies. You get paid upfront; your buyer spreads the cost.
• Omni‑channel by design: Ecommerce, invoices, offline and sales‑assisted, with Xero integration for smooth reconciliation.

Quick note on integrated payments: If you already have an integrated system via a hosted page, consider where embedding payments will remove redirects and reduce friction. Many businesses adopt embedded payments step‑by‑step - starting where it will lift conversion fastest.

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Final thoughts: embedded payments

Embedding payments isn’t just a convenience - it’s a practical way to reduce friction, speed up cash flow and open up new revenue streams. Start where it matters most (often invoices), implement embedded payments with a provider that supports reconciliation and compliance out of the box, and iterate from there. With the right partner, you’ll improve customer experience while keeping costs in check and finance fully in control. Book a free demo today to discover the difference iwocaPay could make to your business.