How Vertical SaaS Is Embedding Payments Into Software

Lucas and Luna explore how vertical SaaS companies are embedding payment processing directly into their platforms, turning software into a profit center. They examine the case of Toast, the restaurant management system, which processed over $126 billion in payments in 2025, generating nearly $1.8 billion in payment processing fees alone. The episode breaks down the economics: how Toast takes roughly 2.5% of every transaction, why restaurants accept it, and how this model is spreading to industries like fitness, dental, and legal. Luna questions whether this creates a conflict of interest, and Lucas explains the network effects that make embedded payments sticky. The episode closes with a look at the regulatory risks and the potential ceiling on payment margins. #VerticalSaaS #EmbeddedPayments #Toast #RestaurantTech #PaymentProcessing #SaaS #BusinessModel #NetworkEffects #Fintech #Software #BusinessAndTechnology #FexingoBusiness #BusinessPodcast #Payments #RevenueModel #Stripe #Square #MerchantServices Keep every episode free: buymeacoffee.com/fexingo