Weavr Whitepaper Shares Insights into B2B SaaS Trends
May 23, 2024

Embedded finance company Weavr has unveiled a new whitepaper - titled The next step for B2B SaaS - that reveals the overwhelming majority of business-to-business SaaS product managers plan to adopt and utilise embedded finance as part of their near-term roadmap.

The new research identified that:

  • 55 per cent of B2B SaaS product managers believe that embedding finance will provide them with a clear competitive advantage.
  • 74 per cent of B2B SaaS product managers have a built-in payment wallet on their roadmap.
  • 62 per cent of B2B SaaS product managers say they plan to implement both built-in payment wallets and debit cards, while only four per cent have done so already.
  • 33 per cent of CPOs see reducing churn as their most important feature driver

Examples of use cases for embedded finance in B2B SaaS products include spendable employee benefits, modernisation of expense management, integrated bill payment for IT and cloud subscription management, and automation of batch payments in accounting tools. Embedded finance involves non-fintech apps and products integrating payments and other regulated financial features seamlessly within their application branding and user experience.

A total of 250 UK-based product managers in B2B SaaS companies were interviewed as part of the research. It highlights rapidly growing awareness of embedded finance within this sector and a likely escalation in competition to bring such new product features to market.

The paper

The white paper underlines the key drivers for embedding finance across B2B SaaS, in addition to the timeframes SaaS product managers have established for their projects. Notably, the research confirms the compelling business case for embedding financial capabilities through elements such as payment wallets and debit cards within B2B SaaS services.

Alex Mifsud, co-founder and CEO of Weavr, said: “In a challenging economic market, venture-capital-invested SaaS businesses have found it difficult to increase revenue by throwing money at customer acquisition. To secure renewed funding, they must now demonstrate a clear path to profitability to attract new investment and continue their paths. Our research shows that embedded finance technology is becoming suitable for mainstream adoption at the right time to help companies access the customer growth and new revenue streams that the opportunity presents”.

Weavr

According to the research conducted by Weavr, 25 per cent of B2B SaaS product managers report that embedded finance features would help attract new business customers. Over one-third of chief product officers surveyed also believe that embedded finance features will help their product generate higher revenue per user.

The report forecasts that embedded finance solutions are soon to become an essential part of SaaS offerings used in business contexts. Rather than being limited to the more adventurous fintechs, embedded finance is set to become accessible as an innovation strategy to the mainstream of non-financial B2B SaaS product businesses, delivering much-needed growth in users and revenue in today’s uncertain economic conditions.

The top three reasons B2B SaaS companies cite for adopting embedded built-in payment wallets, include improving user engagement (28 per cent), increasing the number of paying users (26 per cent) and enhancing revenue per user (25 per cent).

Mifsud also added: “Product managers tasked with delivering SaaS products are leading the way rather than following: they’re seeing the value of financial services being truly embedded into their software, making embedded finance a strategic action to access new revenue sources. As we see more SaaS businesses realise the value - to their customers, and to themselves - of becoming powerful distribution channels for B2B financial services, we predict this trend will continue to accelerate."

 

View the full whitepaper

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