PayPal & Rainforest Partner to Boost Embedded Payments & Ditch Checks for SMBs
- PayPal and Rainforest have partnered to streamline payments for businesses utilizing software platforms, aiming to reduce reliance on traditional and often inefficient, methods like checks.
- The move addresses a significant pain point for businesses: the continued prevalence of checks in business-to-business (B2B) transactions.
- “With the new integration, Rainforest platform clients can enable their merchants to get paid via PayPal, Venmo, and PayPal Pay Later alongside cards, Apple Pay, and pay by...
PayPal and Rainforest have partnered to streamline payments for businesses utilizing software platforms, aiming to reduce reliance on traditional and often inefficient, methods like checks. The collaboration, announced on , integrates PayPal, Venmo, and PayPal Pay Later directly into Rainforest’s embedded payment platform.
The move addresses a significant pain point for businesses: the continued prevalence of checks in business-to-business (B2B) transactions. According to Rainforest, 61% of Americans still write checks, and this method is disproportionately linked to payment fraud. By offering a consolidated digital payment experience, the partnership seeks to accelerate the shift towards faster, more secure, and less costly payment processing.
“With the new integration, Rainforest platform clients can enable their merchants to get paid via PayPal, Venmo, and PayPal Pay Later alongside cards, Apple Pay, and pay by bank through a single checkout experience,” Rainforest stated in a press release. The goal is to simplify the payment process for end customers, leading to quicker payments for merchants and reduced administrative burdens related to invoice chasing and reconciliation.
The partnership is particularly focused on “vertical software” – software tailored to specific industries. This segment represents a strategic growth area for PayPal, as more commercial activity migrates directly into software applications. Taira Hall, Senior Vice President and Head of SMB Commercial at PayPal, emphasized the importance of Rainforest’s specialization. “Rainforest’s deep focus on vertical software and strong execution make them the ideal partner to equip software platforms with trusted PayPal payment options in a way that’s streamlined, scalable, and purpose-built for their needs,” Hall said.
Historically, software companies have faced challenges integrating multiple payment methods, requiring separate development efforts, disparate reporting systems, and fragmented deposit schedules. The Rainforest-PayPal integration aims to resolve these issues by providing a unified solution. Software platforms can now automatically offer PayPal, Venmo, and PayPal Pay Later to their users without the need for additional integrations or complex onboarding processes.
Rainforest, founded two years ago and based in Atlanta, positions itself as a payments-as-a-service provider specifically designed for software companies. The company differentiates itself from larger players like Stripe, FIS, and Fiserv by offering a white-glove service and a focus on the unique needs of the SaaS market. A report noted that Rainforest had grown its payment volume by 17x in the preceding six months and increased its valuation by more than 2x, raising $31.75 million in funding to date.
The broader context of this partnership lies in the increasing desire among small and medium-sized businesses (SMBs) to move away from traditional payment methods. A recent study by PYMNTS Intelligence and Mastercard found that nearly half of SMBs are looking to ditch cash and checks, not necessarily due to a rejection of digital tools, but because of workflow inefficiencies. The study highlighted that payment providers who can address the specific operational needs of SMBs – including approval processes, invoicing cycles, and liquidity concerns – can significantly accelerate the adoption of digital payment solutions.
The integration of PayPal’s services into Rainforest’s platform represents a step towards modernizing B2B payments and reducing the friction associated with legacy systems. By simplifying the payment experience and offering a wider range of payment options, the partnership aims to benefit both merchants and end customers, ultimately driving more volume through digital channels and reducing the risks associated with paper-based payments.
The move also reflects a broader trend of embedded finance, where financial services are integrated directly into non-financial platforms. This approach allows businesses to offer seamless payment experiences to their customers without the complexities of managing payment infrastructure themselves. Rainforest’s focus on embedded payments positions it as a key player in this evolving landscape, and its partnership with PayPal further strengthens its position in the market.