ROI of Embedded Payment Terms

If you’re a wholesale distributor or manufacturer of industrial equipment and supplies, you’ve likely noticed a shift in B2B purchasing solutions, including embedded finance.

According to Global Market Insights, the global embedded finance market was valued at $104.8 billion in 2024 and is projected to grow at a CAGR of 23.3% within the next decade (2025-2034). This means that integrating flexible payment options directly into your checkout process is becoming a real competitive advantage, and businesses that adopt it early stand to benefit the most.

So, the real question isn't whether embedded finance solutions deliver returns (because they do), it's how to measure the ROI of embedded payment terms for your business.

What Are Embedded Payment Terms?

[Embedded payments] refer to financing options that are integrated directly into your purchasing platform. Instead of sending buyers elsewhere (i.e., external payment systems) to apply for credit or figure out payments on their own, you offer it right at the point of sale.

This can include Buy Now, Pay Later (BNPL) options, Net 30/60/90 terms, interest-free installments, or revolving lines of credit. The key is that financing becomes part of the transaction rather than a separate service.

For B2B companies, this matters a lot because business buyers often deal with cash flow constraints and rigid payment structures. Embedding flexible payment terms removes friction at the exact moment the buyer is ready to commit and make a purchase.

Read more: 3 B2B Payment Trends That Will Grow Your Business

Key ROI Drivers

Embedded finance solutions impact a company's bottom line in several ways. Here's where platforms and merchants typically see the biggest return on investment (ROI):

• Higher conversion rates: Cart abandonment is one of the most expensive problems in eCommerce. When buyers hit a paywall, whether that's a lack of credit or friction in the process, they leave. Embedded payment terms address these issues head-on. In fact, better checkout design, like embedding finance technology at checkout, can lead to a 35% increase in conversion rates for large eCom sites.
• Increased Average Order Value (AOV): When buyers can spread costs over time, they're more inclined to make bigger purchases. They're not limited by what they can pay upfront, which means fewer scaled-back orders and more willingness to add higher-value items. B2B merchants using Credit Key have reported average order value increases of up to 841%.
• Increased Customer Lifetime Value (LTV): Embedded finance doesn't just close a single sale. When buyers have a positive financing experience on your platform, they return because they know they can access flexible terms. Over time, they purchase more frequently and spend more per order. Some merchants report customer loyalty rates reaching 75%.
• Operational efficiency: Traditional credit and invoicing infrastructure slows operations down. Embedded finance automates much of this process for you. It's been noted that BNPL financing can boost operational efficiency by 280%+.
• Reduced bad debt: When you extend credit in-house, you carry the risk. When you embed finance, that risk shifts to the financing partner. Credit Key, for instance, absorbs 100% of the credit and fraud risk, and merchants are paid within 48 hours regardless of when the buyer settles their balance.

Read more: Increase Your Conversion Rates with Embedded Lending Technology

ROI in Action

The effect of embedded payments isn't the same in every sector, but what is clear across many industries is that businesses that embed financing into their platforms consistently see real ROI and tangible gains.

• Software platforms: Independent Software Vendors (ISVs) that embed payments into their platforms are tapping into a massive opportunity. Industry estimates suggest ISVs could capture up to $35 trillion in payments, or 15% of the worldwide total. For platforms already handling transactions, adding financing creates a new revenue stream without adding additional overhead.
• B2B Purchasing: When business buyers face longer sales cycles, larger order values, and cash flow constraints, they often second-guess purchases. Embedded terms like Net 30 or BNPL flip the script by letting buyers pay when it suits their revenue cycle. This results in faster purchasing decisions, higher order values, and better cash flow for both sides.
• Retail and eCommerce: 68% of retailers report operational efficiency gains from embedded finance. 33% of platforms offering BNPL have seen faster and easier lender approvals, meaning more buyers qualify and fewer sales are lost to credit limitations.

Credit Key merchant results:

• 250% increase in conversion rates
• 841% increase in average order value (AOV)
• 29% boost in order frequency

How to Calculate the ROI of Embedded Payment Terms?

To calculate the ROI of embedded payment terms, use this formula:

• ROI = Net Profit* from embedded finance ÷ Total Cost of Investment X 100

*Where Net Profit = (New Revenue + Cost Savings) - Total Cost of Investment

7 Things to Look For in an Embedded Finance Partner

Not all B2B embedded finance solutions are created equal, and choosing the right finance partnership is what will ultimately determine your ROI.

Here are 7 things to keep an eye out for:

1. Seamless integrations: The faster you can go live, the faster you'll see returns. Look for providers with pre-built integrations (e.g., Shopify, Miva, Opencart, etc.) for your existing tech stack, as complex setups delay ROI.
2. Proven track record: Ask for case studies and merchant results. A reliable partner should be able to provide you with conversion rates, average order value, and customer loyalty metrics when you ask for them. Also, online reviews and merchant testimonials are a bonus.
3. Omnichannel capabilities: Meeting the demands of modern B2B buyers, the best embedded payment solutions offer a streamlined omnichannel UX across eCommerce, in-store, phone, and field sales. This makes financing available wherever transactions take place.
4. Risk assumption: Understand who carries the credit risk. Partners like Credit Key take on 100% of credit and fraud risk, meaning you'll get paid quickly without worrying about defaults or repayments from consumers.
5. Transparent pricing: All those hidden costs? They erode ROI quicker than they build it. Look for clear, upfront pricing structures and understand any end-of-lease clauses or exit penalties.
6. Regulatory compliance: Regulations such as the Bank Secrecy Act and the Fair Credit Reporting Act (FCRA) matter because they protect your customers. Staying compliant isn't optional, so verify that any provider you consider meets all applicable regulatory standards and can demonstrate their compliance practices.
7. Scalability: Your financing solution should grow with your business. Whether you're processing hundreds or thousands of transactions monthly, the platform should support your growth in 5 or 10 years from now. You'll also experience better cost savings if the platform you choose can scale with you.

Read more: How to Choose the Right Embedded B2B Payments Partner

Boost ROI with Embedded Payments Today

The ROI of embedded payment terms is clear: increased conversions, larger orders, loyal customers, and smoother operations.

With the embedded finance market expected to reach $834.1 billion by 2034, platforms that integrate flexible financing now are positioning themselves to capture that growth. Those who wait risk losing buyers to competitors who make purchasing easier.

If you're ready to see what embedded payment terms can do for your business, request a demo from Credit Key today.

FAQs

What does the ROI of embedded finance mean?

ROI of embedded finances refers to the measurable results a platform/merchant gains from integrating financing options directly into their payment platform. This includes increased conversion rates and higher average order value.

How do embedded payments differ from traditional financing?

Traditional financing typically requires buyers to apply for lines of credit through a bank or lender, often with lengthy application processes. Embedded payment terms are integrated directly at the point of sale (i.e., checkout), offering instant decisions and seamless UX.

Which types of businesses benefit the most from embedded payment terms?

B2B platforms, eCommerce merchants, software (SaaS) providers, and any business with high-value transactions see the strongest ROI from embedded finance.