Why card acquiring firms should embed accounts into their product suite

Expanding capabilities and customer value through embedded accounts in acquiring solutions.

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For years, card acquirers have played a pivotal role in enabling businesses to accept card payments, acting as the crucial connection between merchants, card networks, and issuing banks. With unrivaled distribution networks established across direct, partner and platform offerings, acquirers are essential for enabling businesses to accept payments. In a typical relationship, the acquirer’s role ends once transaction funds are settled into the merchant’s external business bank account.

This model has served the industry well, but growing demand and competition are reshaping the status quo.

Driven by customer demand and improved delivery tools, embedded finance is expected to continue expanding across sectors, with total European revenues projected to reach around €100 billion by 2030. In today’s world of instant payments, multi-currency transactions with global commerce, and embedded financial experiences delivered through independent software vendors (ISVs), acquirers have a significant opportunity to expand their market share, offer new products and deeply embed accounts for their merchants.

The industry shift

New entrants and fintechs are competing with traditional acquirers by offering faster, more integrated payment experiences. At the same time, merchants are demanding greater flexibility, including quicker access to funds, global payment capabilities, and integrated accounts to automate their operations. This dynamic is pushing traditional acquirers to evolve beyond payment processing and become true partners in their merchants’ growth.

Software-led platforms and ISVs are increasingly embedding financial services directly into their user journeys, raising expectations for seamless, integrated experiences. Businesses operating across international markets, as well as those keen to expand internationally, require payment collection and refund capabilities that function seamlessly across multiple markets and currencies.

As embedded payments become more common, card acquiring can go beyond the traditional model, giving merchants integrated account functionality that helps manage payments more efficiently and improves cash flow visibility.

Why embedding an account represents the next step for acquirers

What it means to embed an account

An embedded account is a digital account, typically offered by a bank, electronic money institution, or Banking-as-a-Service provider, that integrates directly into existing systems and platforms. For acquirers, this can be within a merchant portal, an enterprise resource planning (ERP) system, which brings together data and processes across multiple business functions, or a web‑hosting platform. Embedding an account enables merchants or platform clients to hold, manage, and move funds within a single system, simplifying operations and reducing the need to manage multiple platforms.

Traditionally, acquirers have processed payments and deposited funds into merchants’ external bank accounts, limiting visibility and control once settlement occurs. This separation means merchants manage their card proceeds outside the acquiring environment. By embedding accounts within the acquirer’s platform, funds remain in a single ecosystem, enabling real-time oversight, faster access to capital, and more integrated financial management.

Why it matters for card acquirers

Embedding an account isn’t just a product enhancement; it’s a strategic shift that unlocks opportunities for acquirers.

When an account is central to the offering, acquirers can introduce adjacent services, multi-currency FX and holding accounts, card issuing, automated payouts and split settlements, faster settlement options, working capital solutions, and account-based payment rails such as open banking. These are the same product pathways that software platforms and fintechs have leveraged to broaden monetisation and capture greater value from their customers.

Stronger client retention

By offering embedded accounts at the point of merchant onboarding, card acquirers can secure a deeper, more strategic position within the merchant’s financial ecosystem. This transforms their role from simple transaction processors into trusted partners managing payments, treasury, and account operations. Institutions that integrate into their customers’ digital environments open the door to stronger, longer-lasting relationships.

New revenue opportunities

When an account sits at the core of their offering, acquirers can expand their service range and introduce new revenue streams that strengthen their position in the payments value chain.

By embedding accounts, acquirers can offer:

• Foreign exchange and multi-currency holding accounts: enabling merchants to manage cross-border transactions more efficiently while minimising conversion costs.
• Card issuing capabilities: creating new interchange and transaction-based revenue while giving merchants greater control over spend management.
• Automated payouts and split settlements via APIs: improving operational efficiency and supporting more complex payment flows.
• Faster settlement options: including instant, same-day, or intraday transfers to improve merchants’ cash flow and liquidity.
• Account-based payments through open banking: unlocking alternative, lower-cost payment methods that expand customer choice and reduce card scheme dependency.

Operational efficiency

By embedding accounts, acquirers can rely less on third-party and manual settlement processes, reducing handoffs, cutting costs, and creating a more connected, data-rich ecosystem. Controlling the account and settlement layer makes it possible to automate reconciliation, simplify reporting, and speed up the flow of funds from payment to settlement.

This streamlined approach benefits merchants directly, providing faster access to funds, smoother workflows, and more predictable cash flow. Platforms that integrate payments, accounts, and reconciliation into a single system achieve measurable improvements in processing speed, accuracy, and overall operational performance.

Better data and reconciliation

By controlling the account layer, card acquirers gain full visibility over all payment activity, making reconciliation easier, reducing errors, and providing merchants with a clear view of their cash flow. With access to detailed transaction data, acquirers can provide insights that help merchants spot trends, manage budgets, and make informed financial decisions.

Centralising payments and account information in one system makes reporting simpler, audits smoother, and the financial ecosystem more efficient for both acquirers and their clients. When embedded accounts are combined with detailed transaction data, reconciliation and reporting can be automated, providing greater transparency, control, and oversight.

Offering beyond card acquiring

Embedding accounts allows acquirers to reach sectors and payment models where traditional card acquiring has had limited coverage. Areas such as invoice finance, payroll, expense management, and debit‑card issuing represent growth opportunities that many acquirers have yet to fully unlock.

For small‑business customers, embedded financial services provide a new way to deliver value by integrating payments and financial workflows directly into non‑financial platforms. This integration supports tailored solutions that help manage cash flow, simplify operations, and improve efficiency.

For card acquirers, embedding accounts enables them to maintain core acquiring operations while expanding into adjacent industries and previously untapped revenue streams. This approach not only creates new sources of income but also strengthens their position as strategic partners in managing business finances.

Benefits for merchants and platform clients

For merchants and platform partners, the advantages of embedded accounts are immediate and tangible:

• Faster access to settlements: Instant or same‑day settlement provides quicker access to cash flow and working capital, helping businesses manage operations more effectively.
• Simplified reconciliation: A single system gives merchants a clear view of all incoming payments and outgoing transfers, reducing errors and administrative burden.
• Multi-currency flexibility: Merchants can collect, hold, and make payments in multiple currencies without managing multiple providers, contracts, or fragmented exchange rates.
• Trusted provider: Acquirers with established merchant relationships offer reliability and confidence. Using one provider for both accounts and acquiring strengthens these partnerships.
• Opportunities for automation: Embedded accounts enable automated payouts, reconciliation, and financial workflows through APIs.

Ultimately, embedded accounts provide trusted, integrated, and scalable functionality, three of the most sought-after qualities in modern payment solutions.

Implementation considerations

Embedding an account is a strategic step that requires thoughtful implementation. Acquirers can build in-house, use a Banking-as-a-Service provider, or partner with a regulated provider such as Fire. Working with an established provider ensures compliance, reliability, and access to proven account infrastructure.

Compliance is essential, and working with a trusted, regulated provider ensures the model meets financial and regulatory requirements. Scalability should be built in, with API-accessible accounts that support new products, regulatory changes, and multiple currencies.

Integration is equally important. Partnering with Fire allows card acquirers to embed accounts seamlessly, using technology that has been proven across thousands of merchants, billions in transactions, and over a decade of regulated experience. Ensuring a smooth implementation and reliable account functionality for merchants.

The opportunity ahead

Embedding accounts into card acquiring solutions is a natural next step for acquirers. With existing distribution, merchant relationships, and technology partnerships in place, integrating accounts allows acquirers to offer end-to-end payment solutions that bring greater control over the entire transactional lifecycle.

The long-term benefits are clear:

• Strengthened client relationships.
• Access to new and untapped revenue streams.
• Greater product differentiation and the ability to develop new and innovative products.
• Expanded market share and global reach.

Embedded accounts are becoming an essential part of the acquiring landscape, enabling faster, smarter, and valuable payment experiences for merchants and ISV partners alike.

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For acquirers looking to expand their capabilities, now is the time to embed accounts through a trusted partner. If you’re interested in discussing how Fire can partner with you, please reach out to sales@fire.com.