Embedded payments: how software platforms take and send payments
Learn how embedded payments let software platforms accept and send payments in their product, compare integration models, and see where stablecoins fit.
Embedded payments are payment features built into a software product, so customers can pay, get paid, and track money without leaving it. The platform owns the experience, while payment providers handle processing and settlement. Explore stablecoin accounts on Tempo.
Software that runs a business, such as booking, invoicing, or a marketplace, already knows when money should move. Embedding payments lets that software move it.
This guide explains how embedded payments work, the main integration models, and where stablecoins fit. For the broader category, read embedded finance.
What are embedded payments?
Embedded payments let a platform's customers accept or send payments as part of the product. A booking tool collects deposits, a marketplace pays sellers, and a field-service app takes payment on site.
The terms embedded payments and integrated payments are often used interchangeably. When a distinction is made, integrated payments connect software to a processor the customer contracts with separately. Embedded payments are offered by the platform itself, often with the platform earning a share of payment revenue.
How do embedded payments work?
A typical flow has five parts:
- Onboarding. The platform collects information about each business or user that will receive money, and the provider verifies it.
- Acceptance. Customers pay by card, bank transfer, wallet, or stablecoin within the product.
- Funds flow. The provider routes funds and applies any split between the platform and its users.
- Payouts. Balances move to each user's bank account, card, or wallet. See marketplace payouts.
- Reporting. The platform shows balances, fees, and payout status, and reconciles them to its own records.
Which integration model fits?
| Model | Who onboards users | Platform effort | Platform control |
|---|---|---|---|
| Referral partnership | The payments provider | Low | Low |
| Platform account with a provider | The provider, through the platform's interface | Medium | Medium to high |
| Payment facilitator | The platform, under a sponsor's program | High | High |
| Stablecoin payments | The platform and its wallet and ramp providers | Medium | High |
Moving down the table usually means more control over the experience and economics, along with more responsibility for onboarding, risk, and compliance. Many platforms combine models, such as card acceptance through a provider and stablecoin payouts for international recipients.
Where do stablecoins fit in embedded payments?
Stablecoins add a settlement option that works across countries and outside banking hours.
- Acceptance. Customers can pay in supported stablecoins. See how to accept stablecoin payments.
- Balances. Users can hold dollar-denominated stablecoin balances in the product.
- Payouts. Platforms can pay recipients' wallets directly, or through partners that deliver local currency. See global payouts.
- Reconciliation. Payment references attached to each transfer link it to an invoice, order, or user.
Card and bank methods remain important for many customers. Stablecoins are most useful where those rails are slow, costly, or unavailable.
What should platforms evaluate?
- Coverage. Which countries, currencies, and payment methods each provider supports.
- Total cost. Processing, payout, conversion, and network fees for the same transaction.
- Payout timing. When funds are usable by the recipient, not just when an instruction is accepted.
- Disputes and refunds. Card payments carry network dispute rules. Stablecoin payments need refund terms you define.
- Responsibilities. Who verifies users, monitors transactions, and handles reporting.
Where Tempo fits
Tempo is the blockchain built for payments. Platforms use it for stablecoin payments that settle near-instantly with sub-cent network fees. Transfer memos carry references for reconciliation, fee sponsorship lets platforms cover network fees for their users, and the accept a payment guide shows how to receive a payment.
The platform and its providers still manage onboarding, compliance, and customer support. See stablecoin accounts on Tempo or contact Tempo.
FAQ
What are embedded payments?
Embedded payments are payment features built into a software product, so customers pay or get paid without leaving it. The platform controls the experience, while a payments provider or the platform's own payment setup handles processing, onboarding, and settlement.
What is the difference between embedded and integrated payments?
The terms are often used interchangeably. When a distinction is made, integrated payments connect software to a separate processor the customer contracts with, while embedded payments are offered by the platform itself as part of its product, often with the platform earning a share of payment revenue.
How do platforms make money from embedded payments?
Depending on their provider agreement, platforms can earn a share of processing fees, charge for faster payouts or other payment features, and earn on related products such as cards. Economics vary by model, volume, and the risk the platform takes on.
Can embedded payments include stablecoins?
Yes. A platform can accept stablecoin payments, hold balances in stablecoin accounts, and send payouts to wallets, alongside card and bank methods. Ramp partners can convert to and from local currency where customers need it.
Who handles compliance for embedded payments?
Responsibilities are split by model. With a provider that onboards each merchant or user, the provider runs much of the verification and monitoring. A platform that acts as a payment facilitator takes on more of that work. Map responsibilities with your provider and advisors before launch.