Peace of Mind as a Product: How ToolTime Turned Payment Friction into Their Next Revenue Stream

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Embedded Finance Review

Lars Markull

37 episodes

4 days ago

Welcome to the Embedded Finance Review Podcast, hosted by Lars Markull. Join us biweekly as we delve into the transformative world of embedded finance. Each episode features in-depth conversations with the builders and shapers of embedded finance, who are integrating financial services into everyday products and experiences. We go beyond the surface to explore the relevant details, ensuring a comprehensive understanding of how embedded finance is reshaping vertical SaaS, marketplaces, and more. Perfect for professionals, enthusiasts, and anyone curious about the evolving financial landscape.

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Peace of Mind as a Product: How ToolTime Turned Payment Friction into Their Next Revenue Stream

Embedded Finance Review

34 minutes 53 seconds

4 months ago

Peace of Mind as a Product: How ToolTime Turned Payment Friction into Their Next Revenue Stream

Marcel Mansfeld, co-founder and CPO of ToolTime, shares how his German craft industry software company successfully launched embedded payments after raising € 55 million. From serving over 20,000 tradespeople with paperless workflows to building ToolTime Pay, Marcel reveals the challenges, learnings, and strategic decisions behind integrating finance into vertical software.

Main Takeaways:

Timing is everything: Don't rush into embedded finance; build core product maturity and a sufficient customer base first before adding financial services
Open banking vs. embedded accounts: Why ToolTime chose embedded banking over open banking APIs for a better user experience, especially for less tech-savvy customers
The pivot lesson: Their initial card-only payment launch failed; bank transfers remain 98%+ of volume in German B2B markets
Sell peace of mind, not payments: ToolTime monetises the complete automated billing workflow (invoice → payment → reconciliation → dunning) rather than just processing transactions
Long-term commitment required: Embedded finance isn't a quick win; it demands dedicated teams, ongoing customer service, and continuous product iteration
Partnership strategy: How working with Paymi (embedded finance platform) provided the flexibility to build custom user experiences
Revenue diversification: Embedded finance seen as a strategic advantage by investors, moving beyond the core SaaS subscription model
Customer-driven development: A 50,000+ customer insights database guided their embedded finance roadmap and feature prioritisation

Visit our website www.embeddedfinancereview.com for more content.

This episode was produced by Orama.tv.

(00:00) Intro(01:41) Welcome and Introductions(02:05) ToolTime: Digital Solutions for the Craft Industry(02:56) Going Paperless: The Key Benefits(03:48) Understanding the Ideal Customer Profile (ICP)(05:35) ToolTime Pay: Embedded Finance for Trades(10:01) Future of Payments and Financial Services(18:42) Discussing Open Banking and User Experience(19:19) Challenges with Customer Adoption(19:59) Philosophical Views on Open Banking(21:48) ToolTime's Fundraising and Embedded Finance(23:23) Monetizing Payment Products(25:43) Learning and Adapting in Embedded Finance(27:07) Structuring Payment Product Teams(27:47) Embedded Finance in European Verticals(29:03) Advice for Building Payment Products(29:45) The Importance of Customer Base(30:30) Long-term Commitment to Embedded Finance(33:48) Final Thoughts and Contact Information