Insights Overheard at ETA Transact 2025

TRANSACT once again proved itself as the definitive meeting point for the payments industry—bringing together fintech leaders, acquirers, ISVs, platforms, and innovators. From AI-powered underwriting to tap-to-mobile solutions and embedded capital products, the buzz across the show floor was relentless. Here are the key takeaways and themes we heard from attendees that are shaping the future of payments, as overheard directly from the people moving it forward.

Embedded lending is no longer a side offering—it’s central to the business strategy for platforms, processors, and acquirers alike. Solutions like B2B BNPL, working capital finance, and revenue-based finance are now being deeply woven into merchant ecosystems. The goal is to offer flexible access to capital, increase retention, and drive LTV. From white-label solutions to fully integrated embedded offerings, many exhibitors talked about credit and payments merging into one seamless merchant journey.

Notable themes:

• Acquirers and ISVs are actively launching or partnering on embedded lending tools.
• BNPL solutions are shifting toward nondiscretionary expenses, focusing on real-world impact for underserved consumers and SMBs.
• Platforms see embedded finance as a key driver for increasing customer stickiness.

With the rollout of FedNow, real-time settlement is finally becoming a reality for merchants across the U.S. Attendees pointed to RTP's game-changing nature, especially its ability to enable instant merchant payouts, improve capital access, and accelerate cash flow.

• Real-time payouts were especially highlighted as critical for SMBs and vertical SaaS platforms.
• Embedded finance solutions are being reimagined with real-time rails in mind.

Across every corner of the conference, AI was cited as a tangible force powering meaningful change—whether it’s in fraud prevention, personalised underwriting, onboarding automation, or customer targeting.

Real AI applications discussed included:

• Fraud scoring using shared transaction intelligence
• AI-assisted collections and AR automation
• Embedded underwriting tools that assess forward-looking affordability rather than backward-facing FICO scores
• Faster onboarding through AI-enhanced dev documentation and customer service chatbots

AI is also speeding up product development and internal workflows—from coding assistance to performance optimisation. The message: Fintech’s next leap forward will be AI-native.

As embedded and omnichannel experiences evolve, the complexity of securing them rises. Topics like tokenisation, risk management, chargeback prevention, and merchant fraud mitigation were common in discussions.

Emerging trends:

• Tokenised payments and network tokens are improving authorisation rates and reducing fraud.
• Compliance expectations around new real-time and cross-border infrastructure are rising.
• More providers are embedding fraud prevention directly into their stack via partnerships and AI.

A consistent undercurrent across the show: acquirers are pushing deeper into credit. Some are launching in-house offerings. Others are partnering with embedded lenders or creating capital marketplaces within their own ecosystems.

• ISVs and payment platforms are being tapped as distribution engines for credit products.
• Traditional acquiring is no longer enough—capital access is becoming a core value-add.

From loyalty solutions to digital receipts and fraud tools, ISVs are becoming the connective tissue between merchants, processors, and fintech enablers. However many tech companies still struggle to break into this market.

What works:

• Bundling value-added services (e.g., loyalty + fraud + payments) into one seamless go-to-market offer
• Leveraging long-term relationships to help global tech firms enter the U.S.
• Tailoring integrations for niche verticals like family entertainment, construction, or medical services

ISVs that streamline operations and enhance merchant UX—especially around onboarding, funding, and payment orchestration—are positioned to lead.

Companies serving B2B merchants, like manufacturers and professional services firms, emphasised the demand for:

• Faster collections
• ERP-native payments
• Embedded reconciliation and cash application
• Surcharging, dispute management, and DSO reduction

The promise? Automate and enrich AR to become an extension of the CFO's office—not just a payment processor.

One message came through loud and clear: frictionless UX wins.

Whether you’re targeting ISOs, merchants, developers, or CFOs—experience is everything.

Top-of-mind themes:

• Omnichannel expectations: Mobile tap-to-pay, kiosk ordering, and unified commerce.
• Transparent products that meet consumers where they are—especially for paycheck-to-paycheck users.
• Deep, ongoing customer collaboration in product development—not just post-launch feedback.

In a rapidly evolving space, agility was consistently named as a competitive advantage. From the startup floor to billion-dollar players, there was consensus that success depends on:

• Clarity of strategy
• Fast adaptation
• Smart partnerships
• Modular, cloud-first architecture that can scale and pivot

ETA Transact 2025 spotlighted a market in motion—where payments are no longer standalone. They're embedded, intelligent, real-time, and increasingly shaped by partnerships and platforms. From digitising AR to launching embedded lending arms, the future of fintech lies in integration, intelligence, and experience.