Connected Commerce Emerges as FinTech’s Next Big Thing

Connected commerce unifies payments and banking functions, giving businesses greater control, Priority CEO Tom Priore writes in a new PYMNTS eBook, “Headlines That Will Shape the Close of 2025.”

The payments industry has spent years perfecting integrated payments, making it easy to accept payments in software workflows. That foundation is solid.

The opportunity now lies in what I call “connected commerce” — the convergence of payments with full banking functionality. With real-time money movement and storage, businesses get greater control, visibility and confidence in managing their cash flow and ultimately their operations.

The embedded finance market, valued at nearly $100 billion in 2023 and projected to reach $251.5 billion by 2029, has matured to the point where basic payment integration is now table stakes. As a recent PYMNTS analysis noted, “embedded payments, once a lucrative differentiator for software platforms, are now considered a basic expectation, squeezing margins as costs for compliance, risk management, and support rise.” The evolution beyond payments isn’t just an opportunity — it’s become necessary for survival.

Consider the hospitality industry: when a restaurant takes payment, those funds must quickly be disbursed — server tips, supplier invoices, delivery platform payments and reserves for rent, taxes and other expenses. Traditional systems often require multiple steps and intermediaries — and a host of bank accounts and associated fees. Connected commerce brings them together in a single system, with banking functionality that allows funds to be stored, allocated and deployed instantly where they’re needed, with complete visibility.

This connected approach extends into industries with significant money flows and large total addressable markets. Connected commerce allows investment platforms to open investor accounts instantly, place funds into money markets while awaiting allocation, and automate returns distribution to both general partners and investors. At the same time, the platform can manage operational expenses through integrated purchasing cards, generating additional fee income.

Property management shows this in practice. One customer, a fast-growing operator, struggled with fragmented systems that required multiple vendor relationships and accounts. Their old approach created administrative overhead and delayed responses that hurt operations and resident satisfaction. Through connected commerce, they now manage deposits, rent collection, owner distributions and utility reimbursements within a single system. The platform handles complex money flows — tenant payments instantly allocated across reserves, disbursements and expenses — while providing residents flexible payment options and property managers real-time visibility across their portfolio.

Payroll and benefits offer another example. Many companies still rely on separate providers for wage disbursement, early pay and benefits. That fragmentation creates costs and delays for employers and frustration for employees. Connected commerce unifies these functions: wages can be deposited instantly to an employee’s card or wallet, earned wage access can be offered without third parties and contributions to savings or retirement accounts can be automated. The result is faster pay, streamlined processes, and lower costs.

The timing is no accident. The banking-as-a-service market is projected to grow from $24.6 billion in 2025 to more than $60 billion by 2030, providing the infrastructure that makes connected commerce scalable and cost-effective. As margins from payments shrink, companies must add higher-margin financial services on top of payment offerings to stay profitable.

Where banks once held a lock on these services, software providers now offer banking functions without requiring a traditional relationship. It’s not about building one-size-fits-all platforms, but about creating solutions tailored to the needs of specific industries.

As we head into 2026, the companies that embrace connected commerce will define the next chapter of financial technology. The question isn’t whether this evolution will happen — it’s whether your platform will lead it or be disrupted by it.