The Future of Small Business Commercial Cards Lies in Embedded Finance

Access to capital is critical for small businesses, which often need to make time-sensitive payments, absorb upfront costs, and adapt quickly as conditions change. Yet despite this need, access to affordable financing remains a persistent challenge for SMBs: research shows 81% of entrepreneurs report difficulty accessing capital. Ultimately, only about one-third of small businesses that seek financing actually secure it, often for less than they need.

As small businesses struggle to meet funding needs through traditional loans, small business-focused commercial cards—distributed through fintech platforms and Banking-as-a-Service (BaaS) banks—have emerged as a highly effective alternative. The ability to fund immediate expenses without lengthy underwriting or approval cycles makes commercial cards a practical, flexible financing tool for day-to-day operations.

It’s no surprise, then, that half of all U.S. small businesses have a commercial card, making them the most popular small business financing product. Despite this adoption, significant growth remains untapped—particularly by embedding card programs directly into the platforms small businesses already rely on to run their operations.

By embedding commercial card solutions into fintech and SaaS platforms, providers can deliver seamless access to credit at the point of need while capturing durable customer relationships. Embedded commercial card programs represent a material growth opportunity for small business–focused fintechs and software providers—but realizing that opportunity requires the right partner bank.

Small Business Commercial Card Use Is Accelerating

Beyond accessibility, commercial cards offer several advantages that align closely with small business needs:

● Speed and flexibility: SMBs can pay vendors immediately, strengthening supplier relationships and improving cash-flow predictability

● Rewards and incentives: Business owners benefit from cash back, rebates, travel rewards, and other programmatic incentives

● Integrated financial management: Commercial cards provide granular spend data and software integrations that simplify accounting, expense management, and financial planning

Together, these benefits have driven widespread adoption: nearly 90% of small businesses use a credit card (either business or personal) for daily operations and, as a whole, small businesses account for more than 35% of total commercial card spending.

While SMB commercial card spend is projected to continue growing, much of today’s activity still flows through traditional bank-issued cards. Fintechs and SaaS providers are only beginning to capture meaningful share, creating a significant opportunity for forward-looking banks and technology platforms to reshape how small businesses access and use credit through embedded finance.

The Opportunity for Embedded Finance to Power Small Business Growth

Most small business owners do not operate on a traditional nine-to-five schedule. They need financial tools that are available when and where decisions are made—not during limited branch hours or even in a bank’s online banking system.

Embedding financial products directly into SaaS and fintech platforms meets small businesses where they already work, offering continuous access to financing and eliminating friction at critical moments. Beyond convenience, embedded commercial cards allow platforms to differentiate by combining operational tools and access to credit in a single, trusted environment.

Embedded finance creates clear alignment across the ecosystem. SaaS and fintech providers unlock new revenue streams and deepen customer engagement, while small businesses gain integrated, timely access to capital—often paired with meaningful rewards and insights that improve financial decision-making.

A Good Partner Bank is Essential for a Small Business Card Offering

Partner banks provide the operational infrastructure, regulatory oversight, and capital expertise that underpin modern embedded credit programs. While a sponsor bank is essential for any commercial card offering, the right partner determines whether a program merely functions—or truly scales.

Choosing the right partner bank ensures compliant, scalable, and customer-centric card programs. The strongest banking partners enable innovation while maintaining regulatory discipline, allowing fintechs and SaaS providers to grow confidently and responsibly.

Fintechs and software platforms should seek bank partners with dedicated embedded finance teams and a demonstrated track record in small business credit programs. Deep industry expertise, paired with intentional, long-term support, creates the foundation for durable, mutually beneficial partnerships.

Hatch Bank’s purpose-built sponsor banking infrastructure, commitment to regulatory excellence, and deep experience in embedded lending and commercial card programs position us as a trusted partner for small business platforms. Combined with robust capital strategies, Hatch enables commercial card programs to scale from early adoption through meaningful national impact.

Ready to hatch a partnership that goes beyond banking? Contact our team today.

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