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In todays unpredictable economy, more small and mid-sized businesses (SMBs) are feeling tight on time, resources, and bandwidth. Having the right tech in place can help; the past decade has seen an explosion of technology helping small businesses. The downside is that small businesses often need to juggle their data and attention between multiple apps, which is frustrating and expensive. Recent studies show 70% prefer comprehensive, all-in-one solutions that keep everything in one place. But where are these all-in-ones? Software companies have been struggling to create the ambitious all-in-one package because of the costs of building and supporting different types of software (e.g. invoicing, bill pay, accepting payments, accounting, customer marketing, payroll, and more). Thats where the embedded fintech model comes in. More tech companies are now working together to build better experiences, rather than going it alone. With embedded fintech, platforms can embed their tech into software and customize it to fit their audience. Embedded solutions often include APIs and customizable user flows, but also support and go-to-market components. As a result, platforms can launch new products and businesses, backed by the deep expertise of their embedded partners. The embedded fintech opportunity The embedded finance market is booming, currently valued at $185 billion and projected to reach $320 billion by 2030, with SMBs accounting for half of that growth. More than 60% of SMBs want embedded financial services that simplify payment processes; 50% of these businesses believe the solutions can provide valuable payment data and insights to improve their operations. Tech companies that successfully partner with others to offer SMBs tailored, embedded fintech options are tapping into a significant and often overlooked market. Over the past few years, weve partnered with dozens of tech companies like Xero, Lattice, and Collective, and financial institutions, like Chase Payment Solutions and U.S. Bank. Through the technology on our platform, Gusto Embedded, we help them offer payroll directly within their own platforms to their SMB customers. This gives SMBs the chance to access more of their operations on one platform, so they can handle their finances and run payroll all in the same place, using just one login. Five things to consider By helping partners build customizable payroll solutions, weve learned a lot about how to make embedded fintech solutions truly work for SMBs needs. For tech companies seeking to dive into embedded fintech to better serve SMBs, here are five key things to consider: Assess when to partner, and when to build it yourself: You should invest your R&D resources on your core differentiation and what makes you special in the eyes of your customers. Outside of this, consider testing demand with qualitative and quantitative user research as well as a referral partnership. When demand is sufficiently validated, focus on owning the user experience pieces that are unique to your platform, and outsource the rest to a partner. Another approach is a crawl-walk-run approach, where you start with a referral partnership and a light integration before graduating to an embedded or a white-label solution. Align leadership for success: If you decide to pursue an embedded partnership, ensure that your business and product leaders are on the same page with your partners leaders. Ensure everyone has bought into the product development process, the launch strategy, and customer support for the new product. This is vital for a successful rollout and for the best possible experience for your customers. Customization is key: Tailor embedded fintech experiences to be fit-for-purpose rather than relying on generic features. A recent example of this was our partnership with Vagaro. We worked closely with Vagaro to develop an embedded payroll solution catering to the complex wage structures of its customersprimarily salon, spa, and fitness businesses. Taking this approach cut the time spent on payroll processing in half and significantly increased user adoption. Take a thoughtful approach to rollout: Avoid the build it and they will come mentality. A lot of tech companies fall into the trap of building great software, while neglecting to create a strategic go-to-market approach. Ask potential partners how they can assist in promoting the solution to your mutual customers. Do they understand your customers’ needs? How can you work together to clearly communicate and educate customers on the new product? Build trust before launching: The pressure to quickly introduce new products can be intense, but its essential to innovate responsibly. Ensure the end-to-end experience is polished for your initial customers before expanding to a broader audience. In the fintech industry, trust is paramount, and a poor experience can jeopardize customer relationships. For SMBs, the path to growth in an increasingly complex and competitive landscape lies in embracing new technology, particularly through embedded fintech. It will be essential for tech companies to listen closely to the needs of small businesses and develop tailored products that address their most pressing concerns. Partnering with others can speed up that process and help meet SMBs needs faster. When your SMB clients succeed, you can unlock new growth opportunities, while helping SMBs thrive in a digital economy demanding constant agility and adaptability. Tomer London is cofounder and chief product officer at Gusto.
Category:
E-Commerce
If you follow any variety of outdoor-focused brands on social media, you probably noticed these that companies were less focused in recent weeks on pushing products and more focused on pushing advocacy. And those efforts paid off: On Saturday, a plan to sell off public lands for development was stripped from the budget reconciliation bill, also referred to as the One Big Beautiful Bill Act, which passed in the Senate Tuesday. Thats a victory for public lands advocates who opposed the controversial provision backed by Senator Mike Lee of Utah to put millions of acres of federal land up for grabs. Even after the provision was found to violate Senate rules, Lee seemed intent to follow through with a smaller package of land before removing the plan from the bill altogether. Lee, a Republican who chairs the Senate Committee on Energy and Natural Resources, ultimately conceded to the opposition from Republican lawmakers representing Western states. Amid the political back-and-forth in Washington, outdoor recreation brands like Patagonia and REI, the outdoor mapping company onX, and the outdoor lifestyle brand MeatEater kept up a steady drumbeat of messaging to urge voters to voice their opposition to the plan. The last several weeks proved what Patagonia and our partners have been saying for yearsthat Americans of all political persuasions believe in conservation, J.J. Huggins, a spokesperson for Patagonia, tells Fast Company. If anything, he says, this year made it even more clear that the protection of public lands is apolitical. A page out of the Project 2025 playbook Bipartisan support or no, its impossible to ignore the inherent politics at play, as the Republican-backed proposal has been bandied about previously by people in the party, including in the Project 2025 playbook. Outdoor brands focused on rallying their followers around opposition to the policy, while steering clear of the politics, showing its possible to unite voters who have a shared conviction. A recent survey by Trust for Public Land found that 71% of Americans oppose selling public lands, while other indicators suggest the share is even higher. News that the provision had been stripped brought a sense of relief and satisfaction, along with an encouraging sign of the strength of this broad coalition, says Mark Kenyon, host of MeatEaters Wired to Hunt podcast. It also proved that when public landowners of all stripes band togetherhunters and anglers, hikers and climbers, conservationists and environmentalistswe are a powerful force. Collectively, outdoor-focused brands made a loud statement, even as many companies have opted to become quieter in todays polarizing political environment. The unprecedented sense of unity among the greater outdoor recreation world is reason for optimism, says Becky Marcelliano, senior brand manager for advocacy at onX. Like Ive never seen before, the community at-large put down their biases and political leanings and stood tall for what they innately believe in. Patagonia’s push While preserving public land access is core to the missions of MeatEater and onX, these companies are relatively young. Patagonia, meanwhile, has taken up many such causes since Yvon Chouinard founded it in 1973. Its baked into our DNA, Huggins says. The Ventura, California-based outdoor apparel giant has become a model for other companies to emulate, although its not immune to receiving blowback on its various advocacy efforts. We hear it all, were used to it, he adds. But there was a different tenor to this years push for preserving public lands access, even compared with 2017, when Patagonia campaigned against Trumps plans to reduce the size of Bears Ear National Monument. This year really feels more bipartisan, Huggins says. MeatEater’s Message Those party lines didnt completely disappear, however, and were evident in the comments on several of MeatEater’s social media posts, where some users took the opportunity to point fingers. Even though Kenyon says that MeatEater has a long-standing commitment to speaking out and taking action in defense of wildlife and wild places, some followers cited what they perceive to be hypocrisy by the company. A typical post by the MeatEater team on Instagram often garners dozens of comments, whereas recent posts about protecting public lands saw that number swell to as much as 800-plus. Ryan Busse, a Democrat who mounted an unsuccessful bid for governor of Montana in 2024, even weighed in, calling out MeatEater for platforming Donald Trump, Jr. and Tucker Carlson on past podcasts. Though Kenyon says he cant speak to past guests on other podcasts, he adds that the company has always focused on educating its community and will do whatever we can to defend public lands, waters and wildlife. Weve never shied away from tough conversations, and this win shows that its worth the pushback and that we’re not alone in this conviction,” he says. Moreover, he says, the Bozeman, Montana-based company has been putting our money and time where our mouth is with efforts that include organizing volunteer projects for public land habitat restoration, raising funding for its land access initiative, and engaging alongside the broader hunting community. Were not just doing this when its convenient and trendy, Kenyon says. OnX organizes While preserving access to public lands has been core to onXs mission for several years, advocacy is relatively new for the outdoor navigation company. Aside from campaigns related to corner-crossinga legal gray area in which people cross from one corner of public land to another where private land borders boththe company hasnt taken a ton of hard stances in the past, Marcelliano says. Coming into 2025, onX was bracing for potential threats to public lands and the Bozeman-based company wanted to stand a little taller in its policy beliefs, Marcelliano says. The risk of alienating some supporters is something the company considers, but the universality of support for public lands makes navigating this territory easier. We try to find these sweet spots where were all more similar than different. Saturdays news is a win worth celebrating alongside the people who made it possible, Marcelliano says. She credits the greater outdoor recreation world coming together and making a confusing process easier to digest for helping to rally the masses into action. A flood the ines campaign supported by several brands resulted in more than 500,000 letters and phone calls to members of Congress. After seeing outdoor enthusiasts of all sorts get fired up together, Marcelliano is optimistic that this sense of unity will stick with people. She also points to the alignment among onXs audience on social media. Most posts on the companys main Instagram page receive maybe a few hundred likes, at most, whereas its weekend post declaring victory for public lands has garnered nearly 19,000 likes. Its been incredible, Marcelliano says. More battles to wage But the victory lap may not last long. While announcing his withdrawal of the federal lands sales provision from the mega-bill, Senator Lee vowed to keep the spirit of this effort alive. I continue to believe the federal government owns far too much landland it is mismanaging and in many cases ruining for the next generation, he wrote on social media. Marcelliano and Kenyon point to the demonstrated strength and unity of the broader outdoor community as a harbinger of whats possible when this coalition inevitably rallies again in the future. For Patagonia, much of its focus will return to advocating for the protection of public lands in Alaska, which is facing numerous threats we hope to stave off in the coming weeks and months, Huggins says. More broadly, the company will remain focused on those issues where it can make the most difference. Not every company has the luxury of investing these kinds of resources, Huggins says. If you can afford it, if you have people dedicated to these things, it unlocks a whole other level of power.
Category:
E-Commerce
The collaborative design tool Figma continues its march toward going public in one of the most highly anticipated IPOs in the history of design software. Wasting no time licking its wounds after European regulators blocked its $20 million acquisition by Adobe in late 2023, Figma quietly filed its S-1 paperwork to the SEC in April. Now, it’s announced that the S-1 has been made available to the public. That S-1, which you can read here, is full of interesting tidbits, as private companies disclose financial information for the first time. The biggest news? Figma disclosed making $749 million in revenue in 2024with a (non GAAP) profit margin of around 17% (a figure that looks at profits pre-taxes and some other expenditures). Its revenue was up 48% from 2023, signaling that Figma’s growth is quite strong. With revenue in hand, we can see that Figma is about 1/28th the size of Adobe, or about a third of the size of Canva (on a balance sheet, at least). Meanwhile, Figma’s install numbers are confident. The company claims 13 million people use Figma monthly. Ninty-five percent of Fortune 500 companies use the software. And a surprising two thirds of its users aren’t designers. Figma’s public debut date and share pricing has yet to be determined, but it will go by the very cute NYSE symbol “FIG.”
Category:
E-Commerce
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