
As embedded finance continues to evolve, more software platforms are integrating payment acceptance to create new revenue streams. However, many businesses overlook the potential in payouts – a critical yet often misunderstood component of payments infrastructure. In the second episode of Payabli’s series with the Leaders in Payments Podcast hosted by Greg Myers, our co-founders and co-CEOs, Will Corbera and Jo Phillips, dive into why payouts are becoming the next frontier for SaaS platforms and how businesses can capitalize on this shift.
Why Payouts Matter
Most software companies understand the value of embedding payment acceptance, but payouts remain an afterthought. Traditionally, payouts have been viewed as a simple settlement function—sending funds to merchants, gig workers, or vendors. However, Payabli takes a different approach, treating payouts as a fully embedded payables solution that enables SaaS platforms to streamline money movement and unlock new revenue.
Many businesses still issue thousands of manual checks each month, creating inefficiencies, delays, and unnecessary operational costs. Automating this process through a unified API eliminates these bottlenecks while improving vendor relationships and compliance.
How SaaS Companies Can Monetize Payouts
One of the biggest takeaways from the conversation was that payouts can be a major revenue driver—sometimes even exceeding payment acceptance. This is achieved through:
- Virtual card issuance – Vendors are paid using virtual cards, generating interchange revenue when the payment is processed.
- Enhanced ACH transactions – Faster and more reliable ACH payments can be monetized as part of an embedded solution.
- On-demand payouts – Real-time disbursements provide flexibility for businesses while opening new revenue opportunities.
The Shift Toward Embedded Payouts
To fully embed payouts, SaaS platforms must think beyond traditional accounts payable solutions. Payabli follows what they call the Three P’s of Embedded Payments:
- Pay In – Payment acceptance and acquiring
- Pay Out – Vendor, supplier, and contractor payments
- Pay Ops – Payment operations and infrastructure
This comprehensive approach allows SaaS companies to own the full money movement experience rather than relying on multiple third-party providers. By integrating both pay-in and pay-out functionality, businesses create a seamless financial ecosystem that increases platform stickiness and retention.
Security, AI, and the Future of Payouts
As payouts scale, security and risk management become even more critical. Payabli is investing heavily in AI-driven fraud detection, using:
- Dynamic risk scoring to assess vendor trustworthiness
- Automated payment decisioning to ensure compliance
- Real-time monitoring to prevent fraudulent transactions
With faster payments come higher security risks, making AI a necessary tool for safeguarding transactions. The next phase of embedded payouts will likely include even more advanced fraud prevention and compliance automation.
Looking Ahead
Payouts are no longer just a back-office function—they are a key part of embedded finance that software companies can use to drive efficiency, improve vendor relationships, and unlock new revenue. As the industry moves toward a fully embedded payments experience, companies that embrace both money in and money out will have a significant competitive advantage.
For software platforms looking to expand their financial capabilities, the opportunity in payouts is clear. The question is: are you ready to capitalize on it?
Watch the podcast here:
To learn more about Payabli’s offerings and what’s coming next, stay tuned for the next episodes in this series, which will explore Pay Ops.
Interested in learning more about our Pay Out offering?
Schedule a demo with one of our payment experts today.