Embedded payments sounds simple: integrate a provider, monetize transactions, watch revenue grow. But the reality is far more nuanced.In this episode, I sit down with Alex Schoonkind, Cofounder and CEO of Embed, to unpack what it really takes to successfully embed payments into your vertical SaaS platform.Alex shares hard-earned insights from working with dozens of platforms, revealing the common misconceptions that hold companies back, the timing considerations most founders get wrong, and why thinking like a financial services company is non-negotiable before you start.Key Takeaways:The two misconceptions: companies either think embedded payments is incredibly easy, or they're scared of appearing like a bank (both are leaving money on the table)The critical question every founder must answer: "Do you see a future of yourself as a financial services company?"Timing matters: you need 20-50M EUR in yearly transaction volume (roughly 2-2.5M monthly) to make embedded payments worthwhilePayments is "an operational product with a revenue hat"; don't underestimate the complexity or overestimate itSupport overhead reality: only 1-2% of customers reach out with payment questions, and high volume means revenue to hire supportWhy industries like healthtech and proptech are missing opportunities by thinking payments are too far from their core businessFlexible pricing models and settlement streams matter more than vanilla solutions for vertical SaaSAlex's prediction: generic payment providers will disappear as SMBs increasingly run on software that embeds financial servicesConnect with Alex on LinkedIn: https://www.linkedin.com/in/alexschoonkind/About Embedded Finance Review: Weekly newsletters, bi-weekly podcasts, and industry events exploring embedded finance in Europe. Visit embeddedfinancereview.comThis episode was produced by Orama.tv.(00:00) Start(01:39) Introduction and Greetings(01:51) Diving into Embedded Payments(02:20 Common Misconceptions in Embedded Payments(03:29) Challenges and Opportunities in Vertical SaaS(06:52) Timing and Monetization Strategies(12:10) Customer Journey and Integration Timelines(21:12) Exploring Preferred Industries for Embedded Payments(21:19) The Appeal of Legacy Industries(21:37) Challenges and Opportunities in Legacy Companies(23:09) Pricing Strategies for Embedded Payments(24:29) The Complexity of Payment Pricing(28:36) The Evolution of SaaS Companies with Embedded Payments(31:36) Transitioning to Embedded Payments(32:03) The European Market for Embedded Payments(33:35) Building a Company Focused on Vertical SaaS(36:26) Competing with Industry Giants(37:15) Tailoring Payment Solutions for Specific Needs(38:42) Final Thoughts and Advice for CEOs

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