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Brex Unveils Embedded Payments Tool to Expand in B2B Market

Brex, a fintech company known for expense management solutions, is making a strategic move to capture a larger share of the business-to-business (B2B) payments market. With the rollout of its new embedded payments tool, Brex aims to extend its reach beyond direct sales by forming partnerships with other businesses. This move allows Brex to offer its services to a wider array of corporate clients while enhancing the value it brings to its software partners.

Karandeep Anand, Brex’s chief product officer and president, emphasized the significance of the new tool. According to Anand, Brex’s embedded payments solution provides the company with a unique opportunity to diversify its market entry strategies. “This fundamentally opens up a big way of going to market through these other partners versus only selling directly,” Anand explained. He added that it opens up vast new opportunities and time for Brex to carve out a more substantial share of the $1.5 trillion B2B payments industry.

What is the Brex Embedded Payments Tool?

Brex’s new tool, called Brex Embedded, is designed to allow software vendors to seamlessly integrate Brex’s virtual corporate cards and payments capabilities into their own platforms. This integration can be achieved without the need for these vendors to assume the traditional burdens associated with underwriting, onboarding, or taking on credit risk. The tool is powered by an application programming interface (API) that merges various integration technologies, such as Mastercard’s virtual card platform.

Mastercard’s virtual card platform allows software providers to offer their clients Brex’s payments capabilities, enabling them to focus on their core business. Vendors can offer corporate cards with higher limits, competitive rewards, and local currency payments in over 50 countries. The platform also boasts rapid onboarding, which simplifies the customer journey.

Early Adoption and Impact

Although Brex Embedded was only formally launched in mid-September 2024, it had already been adopted by notable early users such as Sabre, Coupa, DoorDash, Boomi, and ScaleAI. These early adopters played a pivotal role in shaping the final product, providing invaluable feedback that helped refine the tool’s design and functionality.

Sherri Haymond, co-president of global partnerships at Mastercard, noted that the tool meets the evolving needs of large corporations that have transformed their operations in the digital era. She praised Brex for delivering an innovative solution that simplifies the management of complex payments systems. “The new Brex tool puts corporations in control with a simple, safe, and easy way to manage connected payments experiences,” Haymond stated.

Building on Customer Feedback

Anand explained that while Brex’s embedded payments solution is shaped by early feedback, the company sees even more opportunities to enhance and expand the tool further. The platform was co-created with early adopters, and as Brex looks to the future, it anticipates continually evolving the solution based on user needs and experiences.

A key aspect of Brex’s success lies in its ability to manage the complexities of fintech, particularly in areas like credit risk and modeling. “Issuing credit cards using an API is the easy part,” Anand explained. “The hard part about building a fintech is, how do you do risk? How do you do credit modeling?” Brex’s expertise in these areas allows it to offer robust solutions while powering other businesses that seek to embed payments into their own products.

The Evolution of Brex

Founded in 2017, Brex has been focused on providing corporate credit cards for startups. The company quickly gained traction among fast-growing businesses like DoorDash. As its clients scaled, Brex responded by building out a comprehensive software stack to manage not only payments but also expense management, travel, accounts payable, and procurement.

As Brex’s product offerings expanded, so did its customer base. The company’s deep understanding of how businesses grow and its commitment to addressing their evolving needs have set it apart from competitors.

A Platform Hardened by Experience

According to Anand, one of Brex’s key strengths is its global payments infrastructure. Over time, the company has secured the necessary licenses, approvals, and regulatory checks to build a payment platform that’s trusted by businesses worldwide. This process has resulted in what Anand described as a “hardened” platform — one that has been tested and refined through collaboration with early adopters and other businesses.

“When you’re touching somebody’s money, you are in a trust game,” Anand said. Ensuring that Brex’s payment solutions are secure and compliant has been critical to the company’s success.

Looking ahead, Brex is positioning itself to go public. While the timing of its initial public offering (IPO) will depend on market conditions, the company is already making the necessary investments in compliance and regulatory policies to ensure a smooth transition.

Benefits of Brex Embedded for Partners

Brex Embedded offers a range of benefits not just to corporate clients, but also to software vendors. For partners that traditionally operated with non-digital workflows, Brex Embedded can reduce the time required to complete payments from weeks or months to just days. This rapid processing significantly improves the overall user experience.

For software partners, the ability to offer integrated payment solutions through Brex can attract new customers and generate additional revenue through payments processing fees. Meanwhile, vendors can avoid the significant costs associated with building their own risk management solutions for fraud detection and know-your-customer (KYC) compliance.

As Anand described it, Brex Embedded creates a “three-way win” for customers, Brex, and its partners. “This is a unique offering in the sense it’s not even win-win, it’s a three-way, win-win-win across the customer, Brex, and the partner,” Anand said.

Conclusion

Brex’s new embedded payments tool marks a significant milestone in the company’s growth and its ambitions in the B2B payments market. By offering a solution that simplifies payments for both corporate clients and software vendors, Brex is positioning itself as a key player in an increasingly competitive landscape. With partnerships driving much of its future growth, Brex is poised to capture a larger share of the B2B payments market while continuing to innovate and evolve its platform.

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