Cross River Bank has announced a partnership with Forward, an embedded payments company, aimed at addressing payment challenges faced by Software-as-a-Service (SaaS) providers. This collaboration intends to leverage embedded payments to enhance the financial capabilities of SaaS platforms, offering solutions such as payouts-as-a-service. As businesses continuously adapt to the digital economy, partnerships like these can play a crucial role in developing more efficient payment systems. With the rapid evolution of fintech, embedded finance is steadily becoming integral to facilitating seamless financial transactions.
What Drives the Need for Embedded Payments?
The collaboration between Cross River Bank and Forward stems from the growing demand for streamlined payment processes in the SaaS sector. Historically, traditional financial systems have been unable to keep pace with the dynamic needs of digital platforms. Embedded payments offer a solution by integrating financial services directly into software systems, allowing businesses to improve revenue streams and customer experiences. The development of same-day ACH payouts is a significant aspect of this relationship, as it fosters faster transactions compared to conventional methods.
Can This Partnership Enhance SaaS Growth?
Facilitating the growth of SaaS platforms is central to this partnership’s objectives. Both companies aim to expand the embedded payment landscape, which could, in turn, bolster the SaaS market. Forward’s proprietary API technology, selected for its innovative approach, is expected to deliver faster payouts. This capability is increasingly important as businesses seek to optimize financial operations and customer interactions. Cross River’s commitment to fintech innovation and responsible practices supports these endeavors, aligning with the ongoing transformations in business payment strategies.
Forward’s recent $16 million seed funding is an indication of the confidence investors have in the company’s potential to drive payment facilitation forward. This investment is intended to meet the growing demand for embedded payments and explore the application of artificial intelligence in managing payment risk functions. Such financial backing could accelerate the integration of advanced technologies into payment systems, offering competitive advantages to early adopters.
“Most software companies get the technical part right, but fail to achieve their business goals,” said Brandon Lloyd, founder and CEO of Forward. “We believe many software companies who have ‘integrated payments’ should be generating greater revenue from these products, and Forward is here to help them do that.”
“We are proud to join forces with Forward to offer payouts-as-service, a solution that caters to the unique financial requirements of SaaS providers,” stated Adam Goller, head of FinTech banking at Cross River.
The evolving landscape of embedded payments is predicted to play a pivotal role in B2B commerce. As noted by industry experts, embedding finance into business infrastructures can create a seamless experience that enhances not only payment efficiency but also overall business relationships. The Cross River and Forward partnership exemplifies this trend, positioning them as key players in the digital financial ecosystem. This initiative is likely to inspire similar collaborations as the demand for innovative payment solutions continues to rise.
