In working together, Modern Treasury and Goldman Sachs said they have built a tool to accelerate client onboarding for their embedded payments service, per the release. Embedded payments refers to inserting payments processes within transactions to increase efficiency. 

Customers can make domestic and cross-border payments, open digital accounts, check their real-time payment statuses and handle incoming payment receipts, according to the release.

“Embedding payments into software products is increasingly the trajectory of commerce, and by partnering with Modern Treasury, we are creating new opportunities for clients to seamlessly leverage our payments capabilities within their own platforms,” Eduardo Vergara, global head of product and sales at Goldman Sachs Transaction Banking, said in a statement.

The COVID-19 pandemic disrupted the retail industry and caused e-commerce sales to skyrocket, making embedded payments increasingly important for serving customers across multiple age groups. A July 2021 Juniper Research report estimated that the embedded finance market, including embedded payments volume and value, embedded insurance premiums, and buy now-pay later services, will surpass $138 billion in 2026.

With embedded payments predicted to rise, some firms have made acquisitions and partnerships to strengthen their services in that payments area. Fidelity National Information Services (FIS) bought Payrix, an Atlanta-based embedded payments startup, for an undisclosed sum. The move enables FIS to add Payrix’s embedded finance tools to its offerings.

Meanwhile, U.S. Bank collaborated with Lithia Motors, the Medford, Oregon-based online car dealership, to enable consumers to sell their cars from their homes. That move was part of the bank’s effort to increase its presence in embedded payments.

As demand for its payments software has grown, San Francisco-based Modern Treasury has more than doubled its headcount and plans for additional growth, Dimitri Dadiomov, Modern Treasury co-founder and CEO, told Payments Dive in July.

Building an embedded payment service can be complex for companies, especially mid-market firms aiming to digitize their payment operations, Goldman Sachs and Modern Treasury noted in the release. That’s because it comes with hurdles ranging from client onboarding and compliance to product ledgering and third-party payment reconciliation, the two companies said.

“Modern money movement is software driven,” Dadiomov said in a statement. “Goldman Sachs understands software developers and has built award-winning APIs for this audience. Modern Treasury fills the payment operations gaps to provide our joint clients with a best-in-class software solution for money movement, so they don’t have to build it themselves.”