Embedded Finance: Revolutionizing Small Business Operations And Growth

What exactly does embedded finance mean for small businesses in the U.S.? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.

Answer by Andrew Brown, founder and CEO of Check, on Quora:

Small businesses represent 99.9% of U.S. companies and employ more than 61 million people—but despite their critical role in the economy, they often struggle to keep up with financial management tasks. From payroll and taxes to invoicing and payments, the complexity of running a business can easily overwhelm owners. That’s where embedded finance comes in—and it’s transforming the way small businesses operate.

If you think back 15 years ago, before the iPhone was a thing, small business software was pretty outdated. But over time, functionality and usability have improved, especially with the rise of embedded financial technology. Vertical SaaS platforms have capitalized on the proliferation of embedded fintech. Now, almost every industry has a platform that was created specifically for their niche range of needs within that space.

Embedded finance allows platforms to integrate financial services directly into the platforms that small business owners are already using, without building from scratch. Rather than having to switch between different tools to handle accounting, invoicing, payments, payroll, and taxes, embedded finance allows all of these functions to be built into a single, seamless platform. It eliminates the need for business owners to become financial experts and streamlines what would otherwise be incredibly complex processes.

At Check, we pioneered embedded payroll, a category within embedded finance. We serve the platforms that serve these small business owners, and we have transformed the way hundreds of thousands of workers are paid. Take the example of a landscaping business. The owner needs to schedule jobs, keep track of details for each client, issue invoices, and accept payments. At the same time, they must handle payroll for themselves and their contractors, file taxes quarterly, and stay on top of payments to tax agencies. Without embedded finance, these tasks can be incredibly time-consuming and spread across various platforms.

The benefits of integrating finance directly into the business tools they already use are game-changing. Small business owners no longer have to juggle spreadsheets, accounting software, and separate payment processors. Instead, financial services become a natural extension of the tools they use every day, giving them more time to focus on running and growing their business.

The market for embedded finance is booming. In fact, it’s projected to grow by 148% over the next four years. The increasing adoption of embedded financial tools reflects a growing demand for integrated solutions that streamline operations and reduce the administrative burden on small businesses. This shift toward all-in-one platforms is making financial management simpler and more accessible than ever before.

The potential of embedded finance goes beyond just convenience. It has the power to level the playing field for small businesses, giving them access to the same financial services and tools that larger enterprises have traditionally enjoyed. As more platforms begin to embed financial services, small businesses will be better equipped to navigate the complexities of finance, reduce mistakes, and thrive. The future of small business finance (and payroll) is embedded.

This question originally appeared on Quora – the place to gain and share knowledge, empowering people to learn from others and better understand the world.