Embedded Payments: Adopting Seamless Payment Solutions

Embedded Payments Guide for UK Businesses

As the world becomes increasingly digital, so too do consumer expectations. People want to browse, buy and pay all in one place — quickly and securely. That’s where embedded payments come into play.

Once a nice-to-have feature, embedded payments are now necessary for SaaS providers, online retailers, and digital platforms that want to offer a frictionless user experience. More than just a buzzword, embedded payments are changing how businesses accept money — streamlining checkout, increasing revenue, and reducing churn.

What Are Embedded Payments?

Embedded payments are payment solutions integrated directly into a software platform, app, or website. Rather than redirecting users to an external payment gateway, embedded payments allow transactions to be completed within the platform itself — creating a seamless, in-context experience.

For users, it’s as simple as clicking a “Pay Now” or “Buy Now” button. Payment details may already be stored, and checkout takes seconds. There’s no need to open a new tab or re-enter card details — everything happens in one place.

Examples of embedded payment technology include:

• Amazon’s “Buy Now” button
• Uber’s in-app payment system
• Food delivery apps like Deliveroo and Just Eat
• SaaS platforms offering client billing or e-commerce plugins

This approach is especially powerful because it improves the payment experience without sacrificing brand consistency or introducing friction at a crucial stage.

Why Is the Market Moving Towards Software-Driven Payments?

According to market data, over 50% of businesses now get payment services from their software provider, and this figure is rising. The reason is simple: embedded payments make life easier — for businesses and for customers.

Here’s what’s driving the shift:

• Consumer demand for speed and convenience
• Rise of SaaS platforms offering built-in payment features
• Increase in mobile and in-app purchases
• Desire for brand control throughout the customer journey
• New revenue streams for platforms offering payment services

In short, businesses are embedding payments to create better user experiences, increase revenue, and improve platform loyalty.

How Do Embedded Payments Work on a Website or App?

A traditional online checkout process might involve:

1. Adding items to cart
2. Creating an account or logging in
3. Entering shipping and billing details
4. Being redirected to a third-party payment gateway
5. Returning to the site post-purchase

It’s clunky — and it’s one of the main causes of cart abandonment.

Embedded payments simplify this flow, enabling customers to:

• Click a single button (e.g., “Pay with PayPal” or “Buy Now”)
• Use stored payment methods and delivery info
• Complete their purchase without leaving the app or website

It’s fast, intuitive, and encourages repeat business.

What’s the Role of Embedded Payments in Finance

Embedded payments are part of the broader trend of embedded finance — where non-financial companies offer financial services through their digital platforms.

Examples include:

• Embedded banking: Retailers offering branded credit cards via their mobile apps
• Embedded lending: Platforms like Klarna and Clearpay offering Buy Now, Pay Later at checkout
• Embedded insurance: Travel apps offering trip protection during the booking process

These services are all designed to make financial transactions more accessible and convenient, while enabling businesses to deliver additional value without redirecting customers elsewhere.

Key Benefits of Embedded Payments

1. Increased Revenue and Platform Stickiness

When you embed payments, you become part of the transaction flow — allowing you to earn revenue from payment processing fees. More importantly, you make your platform indispensable.

The more integrated your services, the harder it is for users to switch to a competitor.

2. Better User Experience

Fewer clicks, no redirects, and faster payments mean fewer abandoned carts and happier customers. For small businesses, embedded payments also reduce the complexity of setting up multiple payment tools.

3. Unified Commerce Across Channels

Whether your customers sell online, in-person or across multiple locations, embedded payments can help unify transactions under one system — enabling better tracking, reporting, and customer insights.

4. Scalability and Flexibility

Embedded payments grow with you. Whether you’re launching in new markets or adding services like subscriptions or BNPL, your payment system evolves to support your business.

5. Stronger Customer Loyalty

Embedded payments make it easier for customers to buy — and to return. By offering rewards, stored preferences, and consistent checkout, you encourage repeat purchases and long-term loyalty.

Embedded Payments vs Integrated Payments: What’s the Difference?

These terms are often used interchangeably, but there are important distinctions:

In summary: Integrated payments allow you to plug in a third-party gateway. Embedded payments make payments an invisible, native part of your product.

Choosing the Right Embedded Payments Provider

Not all payment providers are created equal. If you're a software company, e-commerce brand or service-based business, it's important to choose a partner that offers the right blend of technology, flexibility, compliance, and support.

Look for a provider that offers:

✅ Modular integration – Choose features like card-present payments, pay-by-link, subscriptions or BNPL, depending on your needs
✅ Scalable infrastructure – Ensure the system can handle growing volumes and new markets
✅ White-label branding – Maintain your look and feel across the payment experience
✅ Security and compliance – PCI DSS compliance, fraud protection and GDPR readiness
✅ Developer support and documentation – Clear resources for your tech team
✅ 24/7 merchant support – Live human support when things go wrong

How Merchant Advice Service and The Payments Directory® Can Help

Finding the right embedded payment solution can be overwhelming — especially when you're focused on running or scaling your business. That’s where we come in.

At Merchant Advice Service, we provide independent, jargon-free guidance to help you:

• Understand your embedded payment options
• Choose between providers based on features, support, and pricing
• Ensure FCA compliance and regulatory standards are met
• Avoid the traps of inflexible or expensive long-term contracts

Prefer to self-serve your way to options? Through The Payments Directory®, we connect you with  payment providers who offer:

• Developer-friendly embedded payment APIs
• Transparent and competitive pricing models
• Support for international expansion and alternative payment methods
• Real-time reporting and settlement tools

Whether you're looking to launch embedded payments for the first time or upgrade your current system, we’ll help you do it with confidence.