Embedded payments adoption reached 65% among surveyed small and medium-sized businesses using software platforms in 2026, according to research released on October 7. Yet only 38% of respondents could accurately define embedded payments, highlighting a gap between the technology businesses use and their understanding of how it works.
The study, conducted by Adyen and Visa, surveyed 1,506 payment decision-makers across the United States, United Kingdom, and Germany. All respondents worked for businesses with no more than 250 employees and used software platforms in their operations. The findings suggest that accepting payments inside business applications is becoming increasingly common among this group, particularly in industries where software supports daily customer transactions.
For software providers, embedded payments create an opportunity to connect checkout, invoicing, reporting, and business operations. However, integrating payment services also raises questions about transaction fees, merchant verification, fraud prevention, settlement arrangements, and regulatory responsibilities.
October Survey Finds Widespread Use but Limited Understanding
The October research found that 65% of participating businesses used embedded payments through their software platforms. The results varied by business size, industry, and the type of software respondents used.
Among businesses using industry-specific software, adoption reached 72%, compared with 60% among those using general finance software. Adoption was also higher among respondents employing 51 to 250 people than among businesses with 50 or fewer employees.
Food and beverage businesses reported particularly high adoption at 79%, while professional services firms reported 59%. These differences may reflect how often companies need to accept payments as part of their ordinary operations.
The October 7 embedded payments research was published by a payment technology provider working with a global card network. Its findings offer useful industry evidence but should be interpreted in light of that commercial involvement and the survey’s defined sample.
The 65% figure does not represent every small business worldwide. Companies that do not use software platforms were not part of the surveyed population.
How Embedded Payments Work Inside Business Software
Embedded payments let a business accept or manage payments through software it already uses, without requiring employees to run a separate payment application for every transaction.
A restaurant management system, for example, may combine ordering, checkout, and sales reporting. A property management application might allow tenants to pay invoices directly through its online portal.
Behind the software interface, payment processing still requires specialized infrastructure. Depending on the arrangement, participating organizations can include a payment service provider, processor, acquiring bank, issuing bank, and card network.
Application programming interfaces, or APIs, connect the business software to these systems. They allow applications to initiate payment requests, receive transaction statuses, and update related business records.
The software provider does not necessarily move or hold the money itself. Its responsibilities depend on whether it acts as a technology integrator, works with a payment facilitator, or operates under another commercial and regulatory arrangement.
Why Industry-Specific Software Shows Higher Adoption
Businesses often prefer systems designed around their existing workflows. A restaurant needs payment processing connected to orders and staff activity, while a professional services firm may prioritize invoices and recurring billing.
Industry-specific software can bring these activities together. Employees may spend less time switching between applications or manually transferring information from payment reports to accounting records.
This helps explain why the survey found higher embedded payment adoption among users of vertical software platforms. The technology is closely connected to tasks those businesses already perform.
However, integration does not guarantee lower costs. Businesses still need to compare processing fees, subscription charges, settlement arrangements, and the effort required to migrate from their current systems.
Payment Facilitators Connect Platforms With Financial Infrastructure
Some software companies provide integrated payments through a payment facilitator arrangement. In this model, an acquiring bank supports a registered payment facilitator that can establish payment acceptance relationships with underlying merchants.
Visa’s payment facilitator framework distinguishes the responsibilities of acquiring banks, payment facilitators, and sponsored merchants. The acquiring bank remains responsible for important aspects of the arrangement under applicable network rules.
Not every SaaS provider offering embedded payments is itself a registered payment facilitator. Some integrate services supplied by an established processor or other authorized payment provider.
That distinction matters because payment acceptance involves responsibilities beyond displaying a checkout button. The appropriate parties must address merchant onboarding, transaction monitoring, disputes, settlement, and compliance.
Merchant Onboarding Involves More Than Account Creation
When a business activates embedded payments, the relevant financial service providers generally need information about the merchant and its activities. Requirements can include business identity, ownership, expected transaction activity, and other risk-related details.
Verification helps providers evaluate fraud exposure and comply with applicable financial rules. Additional checks may be necessary depending on the merchant’s industry, location, and payment volume.
Software platforms can simplify the user experience by integrating onboarding steps into their applications. However, a faster interface does not eliminate the underlying verification requirements.
Businesses should also understand who provides the payment service, who handles complaints, and which organization is responsible when transactions are delayed or disputed.
Transaction Fees and Settlement Timing Shape the Economics
Embedded payments can create recurring revenue opportunities for software platforms, but the underlying economics depend on commercial agreements and transaction volumes.
A merchant may pay processing fees, subscription charges, additional service fees, or a combination of these costs. Depending on the arrangement, a software provider may receive compensation from the payment services integrated into its platform.
Processing revenue should not be confused with profit. Fees can reflect network costs, acquiring services, fraud exposure, operational expenses, and other obligations.
Settlement timing also matters. A successful customer payment does not always mean that funds are immediately available in the merchant’s bank account.
Payment providers may apply settlement schedules, risk-related holds, or other conditions. Businesses should evaluate these terms alongside the advertised transaction rate.
Cash Flow and Payment Choice Influence Adoption
The October survey found different priorities across its three markets. In the United States, 55% of surveyed adopters identified faster cash flow as a reason for using embedded payments.
In the United Kingdom, 52% cited access to more payment options. In Germany, 46% cited reduced manual work as a driver of adoption.
These findings show why payment integration can serve different business needs. A retailer may prioritize a convenient checkout, while an invoice-driven business may value reconciliation and reduced administrative work more.
Still, survey responses reflect reported motivations rather than independently measured financial improvements. Faster payment processing should not be presented as a guarantee of faster settlement or improved profitability.
Fraud Prevention and PCI DSS Remain Important
Embedding payments into business software introduces security responsibilities. Applications may interact with payment credentials, customer information, transaction records, and connected financial services.
Developers can reduce some risks by using appropriately designed payment interfaces and limiting unnecessary access to sensitive card information. However, the security obligations depend on how payment data is handled and which systems can affect the payment environment.
The PCI Security Standards Council explains that PCI DSS applies to entities that store, process, or transmit payment account data, as well as certain systems that can affect that environment’s security.
Payment disputes and chargebacks also need clear handling procedures. Fraud monitoring may examine transaction patterns and merchant activity, but no automated control can eliminate every unauthorized payment or disputed purchase.
Embedded Payments Are Part of a Broader API Economy
Integrated payments are one example of financial infrastructure becoming accessible through software interfaces. Developers increasingly use APIs to connect applications with payment collection, settlement information, and other financial functions.
TechAmerica.ai previously reported on cross-border payment infrastructure built around APIs. That development concerns international business payments, rather than the domestic merchant payment integration examined in the October survey.
The broader engineering principle is similar: a software application can provide financial functionality through connections to specialized systems.
However, technical integration does not transfer every financial or regulatory responsibility to the software developer. The underlying provider relationships and applicable laws remain important.
Payment Integration Is Different From Autonomous AI Payments
Embedded payments are sometimes discussed alongside agentic commerce, where artificial intelligence systems assist users with purchases or other financial tasks.
The technologies are related but distinct. Embedded payments describe how payment services are incorporated into software, while autonomous AI payments introduce questions about which actions an agent can perform and how users authorize them.
TechAmerica.ai has examined these emerging requirements in its reporting on payment infrastructure designed for AI agents.
As automated purchasing evolves, businesses will need to distinguish customer authorization, payment execution, fraud screening, and the handling of disputed transactions. An application that can initiate a payment must still operate within appropriate financial and security controls.
Why Some Businesses Continue Using Separate Payment Systems
The October study found that 44% of surveyed non-adopters said their existing payment processes worked adequately. Others expressed concerns about control or difficulties encountered during previous implementation attempts.
For those businesses, replacing a functioning payment arrangement may add costs and disrupt operations without delivering sufficient benefits.
Migration can involve changes to checkout systems, accounting integrations, customer records, and employee procedures. Companies should also review how existing subscriptions and saved payment arrangements would be affected.
A practical evaluation should compare the total cost of both approaches and consider service reliability, customer experience, and access to financial records if a software provider changes.
What Comes Next for Embedded Payments?
The October 2026 findings suggest that embedded payments are becoming a common feature among businesses already using software platforms. Adoption is particularly strong in industries where payments are closely connected to daily operational tasks.
However, the survey’s limited understanding figures show that usage can expand faster than businesses develop a clear view of the underlying technology.
Software platforms may continue integrating invoicing, checkout, reconciliation, and other financial services. Their value will depend on transparent pricing, reliable processing, appropriate merchant verification, and clear responsibility for security and disputes.
Embedded payments adoption may continue to increase, but higher adoption alone does not establish lower costs or better customer outcomes. Businesses will need to measure whether integrated payment systems improve their operations while maintaining the financial and security protections their transactions require.
