Small and medium-sized businesses (SMBs) are rewriting the rules of software adoption. Once content to rely on management tools for accounting, payroll and inventory control, many now see financial capabilities as central to long-term competitiveness.
A new report from Worldpay suggests that 2025 could be the year embedded finance shifts from “nice-to-have” to non-negotiable.
Report Finding
Embedded Finance becomes make-or-break
According to the research, 65 per cent of SMBs say they are prepared to switch software providers if their current platforms fail to integrate financial tools.
That represents a sharp rise from 55 per cent in 2024, reflecting how much weight financial services now carry in day-to-day operations.
The authors argue that software has evolved beyond a back-office utility: it has become the engine for sales growth, customer loyalty and strategic decision-making.
The survey results highlight how embedded lending, in particular, is transforming business expectations.
More than a third of small firms said they would consider changing to a provider offering embedded credit, but that share nearly doubles to 69 per cent among those that had used such products in the past year.
The stickiness is clear: once firms experience the ease of integrated lending, they are reluctant to give it up.
Satisfaction levels tell a similar story. Nearly three-quarters of microbusinesses and small firms using embedded lending reported being highly satisfied with their software, compared with just 57 per cent of those relying on external financing.
In other words, financial integration does not just keep businesses afloat — it strengthens their relationship with the underlying platform.
The effects?
The effects are sector-wide but uneven. Healthcare businesses, facing constant regulatory change, are particularly reliant on platforms that can innovate quickly.
Retailers increasingly look to embedded finance to smooth omnichannel payments, while logistics operators are using integrated tools to streamline sprawling supply chains.
The commercial upside is significant. Firms adopting embedded financial services reported sales gains of between 25 and 50 per cent, underscoring the link between financial enablement and expansion.
Meanwhile, payments remain a critical glue: nearly half of SMBs said they would not consider switching platforms if their payments tools delivered the customer experience they expected.
Matt Downs, Worldpay’s group president for platforms, summed up the strategic pivot: “The platforms that thrive aren’t just offering basic functionality — they’re embedding comprehensive financial capabilities so seamlessly that their clients can’t imagine operating without them.”
For software providers, the message is clear. Embedded finance is no longer a marginal add-on. It is now the deciding factor in customer loyalty — and, increasingly, the price of survival.
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