In this episode of How FinTech Companies Actually Make Money, Scarlett Sieber from Money20/20 breaks down the business model behind Unit, a platform that enables software companies to embed financial services directly into their products. Often described as a banking-as-a-service (BaaS) infrastructure layer, Unit allows SaaS platforms, marketplaces, and logistics companies to offer accounts, cards, payments, and lending without managing the heavy regulatory and compliance burden themselves. By partnering with sponsored banks, Unit abstracts complex financial regulations and provides the compliance-first infrastructure that lets companies focus on building their core products rather than navigating financial rules and oversight.
Unit generates revenue through several key channels. The platform charges subscription and platform fees for access to its financial infrastructure, including ledgering systems, compliance tooling, dashboards, and operational workflows. It also earns usage-based transaction fees across services such as ACH transfers, wires, instant payments, card transactions, and deposits. Additional revenue comes from interchange sharing on card spending, lending partnerships when embedded credit products are offered, and compliance-related services like KYC and KYB checks, risk automation, and ongoing monitoring. As embedded finance continues to expand, Unit has become a go-to platform for companies looking to transform financial workflows into scalable revenue streams while maintaining strong compliance standards.