General Commentary & Highlights
- Still software white space (penetration opportunity) in the SMB segment in both U.S. and Europe (U.S. being more SW penetrated in the mid-market).
- Check displacement a favorable growth tailwind in the U.S.
- Broad opportunities to attach multiple forms of financial services and to yield strong embedded payments and finance margins.
3. Vertical Spend
4. Vertical Dynamics
5. Leading Software Platforms
6. Embedded Fintech Maturity
Embedded Finance Highlights
- Payment acceptance the most mature (attached) embedded finance product
- Embedded pay-outs linked to expense management, procurement, or A/P automation growing.
- Consumer or business financing are penetrated in higher-ticket spend use cases (e.g. roofing).
- Other products (e.g., payroll, insurance) have low penetration today, but future potential.
Please do not hesitate to contact Peter Taylor at Peter@flagshipap.com or Rohan Manudhane at Rohan@flagshipap.com with comments or questions.