Embedded B2B Payments Demand Embedded UX

Embedded Payments Demand Embedded UX

In B2B payments, the way companies interact with financial services is undergoing a fundamental transformation. Embedded finance has become more than just a feature; it’s an approach that allows businesses to integrate payments directly into their workflows. Why hop between platforms to complete transactions when payments can be woven directly into the systems people already use daily?

However, this promise of simplicity can quickly fall flat without thoughtful design. The key to reaping the full value of embedded finance lies in embedded UX—a seamless, intuitive user experience that’s built into the heart of each payment function.

Embedded UX ensures that users can complete tasks without friction, interruptions, or confusion, all within the platform they’re already navigating. In fact, without embedded UX, the entire concept of embedded finance can fall apart, as users struggle with complex or clunky interfaces that add rather than reduce friction.

Let’s dive deeper into the meaning of embedded UX, explore the state of embedded finance in the B2B payments landscape, and uncover how a well-executed UX design is pivotal for creating payment solutions that offer lasting impact and value.

Understanding Embedded UX: The Foundation of Embedded Finance

Embedded UX goes beyond simply adding a payment button to a software platform. It’s about designing a fully integrated user journey, where each interaction within the platform flows naturally and logically into the next.

For embedded finance to deliver real value, users must be able to complete payment actions without leaving their workspace, following simple, intuitive steps that minimize effort and maximize clarity.

Embedded UX aims to make complex transactions feel effortless by presenting only what’s necessary at each step and ensuring users don’t get lost in unnecessary details or redundant actions.

If done right, embedded UX is invisible; it lets the user complete tasks smoothly, without being conscious of the technology enabling it. But when it’s absent, users face friction, inefficiency, and frustration—the exact issues embedded finance is supposed to solve.

In short, embedded UX is the linchpin for embedded finance, enabling the ease and speed that makes it valuable.

The State of Embedded Finance in B2B Payments

Today’s B2B payments space is increasingly embracing embedded finance. Large organizations are integrating payment capabilities into ERP systems, supply chain management software, and procurement platforms, seeking to streamline complex workflows and offer a more user-friendly experience.

According to a recent study by BCG and Ayden, embedded payments and finance represent a $185 billion opportunity with a substantial increase expected in the coming years.

In theory, embedded finance offers significant advantages to companies looking to speed up transactions, improve data accuracy, and reduce time spent switching between platforms. But in reality, the potential of embedded finance can fall short without an accompanying embedded UX.

B2B transactions are highly regulated and often involve multi-step approvals, complex documentation, and strict security requirements. If these processes aren’t built into a well-designed user interface, users may struggle to understand or trust the new system, and adoption can stall.

Why Embedded Finance Needs Embedded UX

Imagine a CFO managing vendor payments. With embedded finance, they should be able to review, approve, and initiate payments directly in their ERP system. But if the UX isn’t well-designed, they might face barriers such as hidden actions, unclear error messages, or a convoluted payment flow.

Instead of enjoying a seamless experience, they’re left frustrated and may even revert to traditional methods. This not only defeats the purpose of embedding the payment feature but also impacts productivity and trust in the system.

Embedded UX is essential because it ensures:

1. Visibility of key actions and information so users always know where they are in the process,
2. Clarity in communication, such as clear labeling and easy-to-follow steps,
3. Minimal friction by eliminating redundant tasks and reducing steps to complete a transaction.

The promise of embedded finance lies in simplicity and speed, but these qualities are impossible to achieve without a UX design that thoughtfully considers the needs and workflows of its users.

Use Cases: How Embedded UX Drives Success in Embedded Finance

Let’s look at specific scenarios where embedded finance can transform B2B payments—if and only if embedded UX is prioritized.

1. Vendor Payments in ERP Systems

For finance teams, embedded payments within ERP systems can significantly speed up vendor payments and improve control over financial operations. However, for this to work seamlessly, embedded UX needs to provide:

• One-click approvals that are simple to access and secure,
• Real-time status tracking so users know immediately when payments are processed,
• Clear error handling for quick, user-friendly resolution of issues.

The right UX design makes the payment feature feel like a natural extension of the ERP platform, allowing finance teams to work faster and with fewer errors.

2. Real-Time Financing Options in Procurement Platforms

For large purchases, procurement teams often need to compare financing options. Embedding financing offers within procurement software can eliminate the need to switch between platforms or negotiate separately. But for embedded finance to be effective here, the UX must prioritize:

• Upfront clarity on financing terms and interest rates,
• Seamless integration of approval workflows, so that each team member has the right level of access,
• Repayment tracking that’s visible and easy to understand, reducing guesswork for finance teams.

This creates a more transparent and manageable financing process, encouraging faster adoption and more efficient financial management.

3. Expense Management in HR Platforms

Expense management can be simplified by embedding reimbursement payments within HR platforms, making it easier for employees to submit expenses and managers to approve and process them. For embedded finance to succeed in this scenario, the UX design needs to focus on:

• Transparency into approval status, so employees know where their request stands,
• Clear notifications when reimbursements are sent, reducing the need for back-and-forth emails,
• Simple access to historical expenses so users can track past submissions without navigating multiple pages.

When done well, the experience is seamless and empowers employees to manage their expenses with confidence and ease.

Asking the Right Questions: Finding UX Opportunities in Embedded Payments

If you’re a payment leader evaluating how embedded finance could work within your organization, it’s essential to approach UX design strategically. Here are some guiding questions to help you identify and capitalize on UX opportunities:

Where are users experiencing friction? Start by observing how your teams currently process payments. Are there any steps that feel slow, redundant, or confusing?

Identifying these points of friction can inform the UX design to address pain points and reduce wasted time.

How do users currently complete tasks across platforms? Analyze how users move between systems to complete related tasks, such as approving, paying, and reconciling invoices.

Are we involving users in the design process? Co-creating with end users is a powerful way to ensure that the embedded UX meets real needs.

For instance, hosting focus groups or usability tests with finance and procurement teams can reveal insights into how they navigate payment tasks and what would make their workflows easier.

How are we iterating and improving over time? UX is not a “set it and forget it” process. Once the initial design is in place, continuous feedback and iteration are essential.

Working with a UX expert who understands B2B payments like WDIR allows your team to refine the experience based on real-world usage, ensuring that it stays efficient and relevant over time.

Why UX is a Strategic Advantage in Embedded Finance

As more platforms embed payment capabilities, the UX surrounding these features will become a competitive differentiator. Those who invest in UX will gain systems that function smoothly and empower their users, leading to faster transactions, lower error rates, and more satisfied employees.

In contrast, companies that overlook UX may struggle with user frustration, low adoption rates, and diminished ROI on their embedded finance initiatives.

Key Takeaways

1. Embedded finance in B2B payments is growing rapidly, but its potential depends on embedded UX.
2. Embedded UX is the linchpin that allows embedded finance to offer real value, ensuring users can complete tasks smoothly without friction.
3. UX opportunities in embedded finance can be discovered by analyzing workflows, involving end users, and iterating based on feedback.
4. Partnering with a UX professional can help ensure that embedded finance solutions meet real user needs, leading to sustainable adoption and long-term success.

Transform Your Embedded Finance Strategy with WDIR

If you’re a payment leader ready to unlock the potential of embedded finance, UX will be the key to your success. At WDIR, we bring years of expertise in designing seamless, intuitive payment experiences that fit naturally into B2B workflows.

Let’s turn your vision of seamless payments into a reality!