Embedded finance is no longer just a buzzword, it’s a strategic necessity for platforms aiming to increase retention, diversify revenue, and elevate UX. But as more established companies discover, building financial infrastructure in-house often comes with hidden costs and diverging focus.
Here’s how four major platforms: Etsy, Firstbase, Pressed, and Shopify - chose embedded finance outsourcing over building in-house, saving time, effort, and money.
1. Etsy: Simplifying Tax Compliance at Scale
What They Do:
Etsy operates a global marketplace for creators and vintage sellers, with annual gross sales above $13 billion.
The Build Challenge:
Etsy categories span tax jurisdictions: state-level sales tax, VAT, international taxes, marketplace facilitator rules. Internalising all of this would mean massive engineering resources and compliance oversight.
Why They Outsourced:
They integrated Avalara directly into their platform. Avalara automates registration, tax calculation, filing, and reporting - all in a centralized dashboard. This enables Etsy to comply with regionally varied tax regulations without internal drag.
The Results:
Automated sales tax across 50+ U.S. states
Reduced audit risk and operational overhead
Seamless seller experience across geographies
Focus on marketplace innovation, not tax rules
2. Firstbase: Strategic Pivot from Build to Buy
What They Do:
Firstbase is a comprehensive startup platform used by over 30,000 founders to incorporate, manage compliance, bookkeeping, payroll taxes, and more.
The Build Challenge
Firstbase initially explored building invoicing internally as a natural extension of their platform. However, after evaluating the scope and complexity, they realized the project would require significant engineering resources and extended timelines that could impact their core roadmap priorities.
Why They Outsourced
Firstbase needed global payment support, tax-compliant invoicing, automated reconciliation, and real-time insights - all designed to feel native to their platform. Building comprehensive financial infrastructure would require 18+ months of dedicated development, substantial compliance investments, and would divert focus from their core startup services.
The Monite Solution:
They chose to integrate Monite's embedded finance APIs, enabling them to launch branded, compliant invoicing with multiple automation workflows.
"Monite let us launch natively - fast. No compliance burden, no delays. It's a win for users and revenue." - Teague Sheldon, PM, Firstbase
The Results:
Faster go-to-market: Weeks, not quarters
Higher retention & engagement: Users invoice and get paid in-platform
New revenue channel: Monetized transactions without liability
Competitive positioning: Embedded finance became part of the core product
3. Pressed: Subscription Checkout Built on Braintree
What They Do:
Pressed is a fast-growing DTC (Direct to consumer) beverage startup experimenting with new subscription models.
The Build Challenge:
They needed a smooth, flexible checkout for subscriptions and recurring orders, but didn’t want to invest in building compliance and retry logic.
Why They Outsourced:
Pressed implemented Braintree (a PayPal service) to manage payments infrastructure - including PCI compliance, fraud detection, and recurring billing flows
“Pressed implemented Braintree … to future proof their business and streamline their operations.” - paypal.com
The Results:
Fast integration: PCI-compliant payments in days
Subscription automation: recurring orders, retries, dunning—all handled
Operational agility: team focused on product and growth, not checkout complexity
This case shows that even high-growth DTC brands save time and money outsourcing key financial infrastructure.
4. Shopify: Offering Finance Tools Without Becoming a Bank
What They do:
Shopify equips merchants with e-commerce tools, payments, POS systems, and finance options like capital advances and bank accounts.
The Build Challenge:
Adding lending, banking, and bill-pay requires operating as a regulated financial institution - expensive, complex, and far from Shopify’s core competency.
Why They Outsourced:
Shopify embedded technology and banking providers like Evolve Bank. Through BaaS and embedded finance, they launched:
Shopify Payments (2013) in 22+ countries
Shopify Capital (2016): upfront funding paid back via merchant volumes
Shopify Balance: merchant bank account + debit card
The Results:
Merchant financing to grow businesses
Embedded bank accounts with minimal friction
Revenue share on finance services—without regulatory overhead
Bain estimates the embedded finance market will deliver $11 billion in revenue by 2026. Shopify is leading that trend, but without paying the full cost of being a bank.
Why Embedded Finance Outsourcing Beats Building
These companies share several insights:
Time-to-market acceleration: From 6–18 months internally to a few weeks through integration.
Compliance handled externally: KYC, AML, tax, VAT, data residency. All managed by prebuilt finance partners.
Opportunity cost is real: When teams build finance instead of users-focused features, that’s time, burnout, and product stagnation.
Monetization without liability: Partners like Monite pay out of their own balance sheets. Platforms take a share, not a balance sheet burden.
Scalability across borders: Local payout methods, currencies, and regulations handled seamlessly.
The ROI of Embedded Finance Outsourcing
Platform | Build Time (Est.) | Key Outsourced Solution | Outcome |
Etsy | Months - Years | Avalara Tax Suite | Automated tax compliance, reduced audit risk |
Firstbase | 18+ months | Monite embedded APIs | Live in weeks, reduced dev & risk |
Pressed | Weeks-Months | Braintree | PCI checkouts + subscription automation |
Shopify | Years | Evolve Banking | Finance features + compliance at scale |
What This Means for Your Platform
Even major tech companies with deep pockets and sophisticated teams are choosing outsourcing. So should you:
Define your differentiation. Is embedded finance your competitive moat - or just a table stake?
Map your total cost. Account for engineering, legal, compliance, ongoing maintenance - not just initial build time.
Value time over ownership. What features lie dormant while your team builds finance tools?
Take incremental steps. Test with one embedded feature (like invoicing or payouts) before deciding to self-build.
Final Thoughts
Embedded finance offers a powerful lever: new revenue, retention and UX. But only if implemented strategically. The platforms above show that winning comes not from owning financial features, but from strategic embedded finance outsourcing with the right partner; who handles the complexity while you stay focused on what makes your platform unique.
