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Improved Embedded Payment Solutions in High Demand Among Software Vendors

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TSG & KeyBank Explore the Embedded Banking Opportunity

Software vendors are teaming up with solutions providers to integrate banking and payments offerings into their products. As these arrangements become more common, software vendors are starting to form judgments about the capabilities of their providers. In response, TSG and KeyBank conducted a survey to better understand software vendors’ experiences with embedded solutions companies. These Trends Emerged →

Over 200 U.S.-based software vendors participated in the survey. The survey aimed to better understand the experiences software vendors have had with their providers. As well as their feelings around embedded banking solutions. While some software vendors were satisfied with their providers, 72% agreed they plan to continue working with them over the next two years. They were less optimistic about their feedback regarding specific aspects of their embedded solutions.

Only 55% of software vendors reported being satisfied with their embedded payment provider’s APIs. 41% are satisfied with the quality of customer service they receive while working with their provider. Moreover, only half of the software vendors surveyed reported high satisfaction with their primary provider’s embedded banking offerings.

The survey results highlight the opportunity for providers to enhance software vendors’ experiences and offer them more competitive solutions that meet their needs. With 91% of software vendors considering their embedded banking options to be important or extremely important to their company today, the popularity of embedded banking solutions isn’t going anywhere.

Software vendors are demanding seamless shopping experiences for their customers, and embedded banking solutions are becoming an progressively popular way to meet this demand. While providers have made progress in this area, there is still significant room for improvement. By understanding software vendors’ needs and addressing their concerns, providers can offer better solutions. Even more, remain competitive in this rapidly evolving market.

To learn more about KeyBank’s Embedded Banking Solutions, visit key.com/embeddedbanking.

Whitepaper: The Power of Embedded Banking

Go beyond the infographic and download this whitepaper. Learn more about embedded banking, the changing role of software vendors, and why it matters for your platform. Contact us to talk more about embedded solutions.

Survey Methodology: TSG surveyed 205 software vendors, primarily in the U.S., to understand how software companies view their embedded banking and payments providers. The survey was conducted between October 2, 2022 and October 18, 2022. Software Vendors reported serving a variety of industry verticals, with an average tenure of 3 – 5 years working with an embedded payments provider.