From Yahoo Finance: 2025-04-29 10:02:00

SaaS platforms have relied on recurring revenues for growth, but AI threatens this model by making it easy to replicate features. Embedded finance, like lending, creates a unique offering that boosts revenue and customer loyalty. Companies like Shopify and Toast have seen success by prioritizing financial services over software.

The decline of traditional banking relationships has left SMEs in need of alternative funding options. The lack of tailored financing solutions has created a €400bn funding gap in Europe alone, impacting the economy. Platforms can step in to provide embedded finance solutions, offering capital within their ecosystem without becoming a bank.

Platforms that embrace embedded finance will thrive in the next decade by providing capital and staying ahead of the competition. SaaS alone is no longer enough to secure a platform’s relevance. By offering financial services within their ecosystem, platforms can create a new moat that sets them apart in the market.



Read more at Yahoo Finance: Why capital is the new platform moat