Empowering your merchants with embedded lending

As the 2025 holiday season approaches, a convergence of payments technology – from embedded financial services to agentic AI – will influence consumer shopping behavior. Adobe for Business projects point-of-sale financing transactions will value $1 billion on Cyber Monday alone. Additionally, shoppers will use mobile payments for 56.1% of holiday sales,* marking the first time mobile purchases exceed half of overall spending. Are your merchants set up for success?

Let’s look at a use case. A merchant offers flexible financing options to a customer shopping for a smart TV at checkout. The customer chooses a six-month installment plan, receives instant approval, and finishes the purchase directly on the merchant’s website or within their app. The shopper gains immediate access to financing, making the high-ticket holiday purchase more manageable.

For the retailer, embedding lending means higher conversion rates, reduced cart abandonment, and increased average order sales. The ISV benefits through monetizing the lending feature through a referral fee or revenue-share model while creating more value for its merchants. Everyone in this scenario benefits.

What to look for in a lending solution

So, how can ISVs implement financing options in their software? They can integrate a fully headless API solution to gain maximum flexibility in customizing the user experience. This approach enables ISVs to tailor the financing flow to their brand’s specific needs, differentiate themselves in the market, and accelerate their speed to market.

Beyond providing a holistic software solution, ISVs need to consider a solution that supports how consumers want to pay, including mobile terminals, self-checkout kiosks, and unattended payment methods—all optimized for holiday traffic and offering financing options.

Software companies should seek a robust suite of RESTful APIs that supports every stage of the point-of-sale (POS) lending lifecycle, offering granular control and customization. Alongside advanced API capabilities, they should prioritize clear documentation, strong developer resources, and a sandbox environment that streamlines integration and reduces friction.

Bringing it all together

ISVs thrive with a payments partner that goes beyond basic acceptance. In a crowded market, offering end-to-end payments technology—from checkout to financing—helps your merchants boost revenue and build stronger customer relationships. When shaping your long-term strategy, choose a proven partner that supports your growth and embeds value throughout the payments experience.

Explore what’s possible with our comprehensive suite of APIs, a vast ecosystem of integrated software solutions, and U.S. Bank Avvance™ -- our point-of-sale lending platform designed to streamline the consumer journey. Backed by the strength and stability of U.S. Bank, we bring global payments expertise so you can focus on delivering more value to your customers.