Guides

Most vertical software companies should take a rate on merchant volume without becoming a PayFac. The first pick is Connect-style platform payments (an application fee on someone else's license) or PayFac-as-a-service (you set price, they stay registered). Becoming the facilitator is a later ownership decision. This page is the decision tree, not a ranked list.

Embedded banking is how a software company puts accounts and money movement in the product without a charter. The first pick is middleware BaaS, the bank's own APIs, or treasury that only moves money. A sponsor bank still holds the deposits. You are not the bank. This page is the decision tree, not a ranked list.

Card issuing puts branded virtual or physical spend cards in a software product without a bank charter. The first pick is a managed program manager, bring-your-own BIN on an issuer processor, or processor-tied issuing on a stack you already run. A BIN sponsor still issues the cards. This page is the decision tree, not a ranked list.

Embedded lending is offering credit inside software the borrower already uses. The software company is usually not the lender. The first pick is SMB working capital (often MCA-shaped), a bank-originated business loan, or consumer installment at checkout. This page is the decision tree, not a ranked list.

The stack is the infrastructure a vertical software company embeds to take a rate: payments, banking, cards, lending, and the work around the money. It is not the industry software itself. Most teams start with payments. This page is the map. The pick guides are the decisions. How we pick is the rules.

Platform payments is a ladder, not a vendor beauty contest. Referral, Connect-style, PayFac-as-a-service, and full PayFac differ on who holds the license, how you go live, how much ops you run, and whether you can graduate. This page maps that ladder and how buy rate, revenue share, and talk-to-sales pricing actually show up in public marketing.

Embedded lending puts working capital inside software merchants already run. The platform is usually not the lender. This page is a short Best For / Not For cut of live Vertical Fintech lending names, with capital model, lender of record posture, and public pricing stance. It is not a ranked buy list and it prints no APRs or factor rates.

Stripe Connect and Finix both let vertical software take a rate on merchant card volume. Connect keeps Stripe as the licensed party and monetizes with application fees or revenue share. Finix sells PayFac-as-a-service with custom merchant fees and a same-API path to take the license later. Pick by who holds registration today, not by brand.

Unit, Treasury Prime, and Stripe Treasury all put partner-bank balances inside vertical software without giving you a charter. Unit is custom or managed BaaS middleware. Treasury Prime is multi-bank software plus a direct bank agreement. Stripe Treasury is financial accounts for business users on Stripe. Pick by bank-relationship shape and who runs KYC, not by the word banking.

Parafin and Kanmon both put SMB working capital inside B2B software without making the platform the lender. Parafin runs a Celtic Bank Term and Flex program as the fintech operator. Kanmon markets itself as the licensed lender of record with several capital structures. Pick by lender-of-record shape and product menu, not by the word capital.

Marqeta and Lithic both issue branded virtual and physical cards inside software on partner-bank BINs. Neither is a bank. Marqeta splits Managed By Marqeta and Powered By Marqeta. Lithic splits Program Managed and Processing. Pick by who brings the BIN sponsor and who runs program ops, not by the word cards.