Banking-as-a-Service (BaaS) has gone from fintech buzzword to strategic priority for many enterprises. And with good reason – it enables platforms and marketplaces to integrate financial services without the heavy lifting of becoming a licensed bank.
But as more enterprise buyers step into the embedded finance space, a familiar pattern is emerging: misunderstandings, overpromises, and disillusionment. Not with the concept itself – but with how it’s delivered.
Let’s break down the most persistent myths, clarify where the real value lies, and highlight how providers like ConnectPay are doing things differently.
Myth #1: “BaaS is just plug-and-play”
It’s a comforting narrative: you integrate a few APIs and your platform suddenly offers fully functional, compliant financial services.
In reality, the journey from sandbox to production is rarely that smooth – especially at enterprise scale. Behind the scenes, there’s complex orchestration: customer onboarding, fraud controls, regulatory alignment, multi-currency handling, and more.
At ConnectPay, we’ve designed our tech stack and onboarding process specifically for fast, secure scalability. Enterprises don’t just get access to APIs – they get a dedicated onboarding team, pre-built workflows for regulated environments, and compliance baked in from day one.
Myth #2: “Compliance is the provider’s problem”
This is one of the most dangerous assumptions.
Yes, BaaS providers carry the license. But the regulatory responsibility is shared, not outsourced. If your business offers financial features – cards, accounts, payments – you need to ensure your provider is not just compliant themselves, but enables you to be compliant, too.
The EBA stresses the importance of due diligence and oversight in third-party arrangements.
What sets ConnectPay apart is our built-in compliance framework, developed to go beyond the industry minimum. From AML monitoring to regulations-aligned onboarding flows, everything is designed to give enterprises not just peace of mind – but provable control.
Myth #3: “All BaaS providers offer the same thing”
It’s easy to assume the BaaS landscape is more or less uniform. Cards, accounts, payments – everyone’s offering the same stack, right?
Not quite.
In practice, the scope and depth of services vary significantly between providers. Some focus solely on card issuance. Others prioritise payments or niche capabilities. The challenge for enterprise buyers is that it’s not always obvious what’s included – and what’s not – until you’re mid-integration.
That’s something we hear during the meetings: “Honestly, we assumed we’d need multiple providers to get all this. Our platform is designed to be modular – covering accounts, payments, cards, and wallets. But more importantly, we focus on making those services work together seamlessly, without overcomplicating what should be simple.
The goal isn’t to offer everything. It’s to offer what matters, with depth – not just breadth.
Myth #4: “More features = better platform”
More isn’t always more.
It’s easy to be dazzled by a flashy feature list – but too often, enterprises end up with bloated tools, unnecessary integrations, and internal confusion.
What matters more is smart modularity – being able to launch with what you need now, and expand without re-engineering your entire system.
At ConnectPay, we keep our offering lean where it should be, and powerful where it counts. Our clients choose only the services they need, without compromising performance, compliance, or support. That means faster launches and easier scaling.
Myth #5: “If it’s working, don’t touch it”
It’s a classic enterprise trap: the system hasn’t broken (yet), so why question it?
But in fast-moving markets – especially in embedded finance – “working” doesn’t always mean “working well.” Many platforms are operating on legacy integrations, partial compliance coverage, or rigid setups that limit growth. The risk isn’t in exploring alternatives – it’s in assuming you don’t need to.
Forward-thinking teams regularly re-evaluate their BaaS partners to ensure the tech, support, and regulatory frameworks are still fit for purpose. And some find that “good enough” quietly became a bottleneck.
That’s where ConnectPay steps in – not to patch what’s broken, but to replace outdated infrastructure with a future-ready foundation. We don’t just integrate – we rebuild the financial layer of your platform to be more scalable, more compliant, and genuinely seamless. It’s not about a better workaround. It’s about a better way forward.
The takeaway: BaaS works – when you evolve with it
Embedded finance isn’t a one-time project – it’s an evolving layer of your business model. The most successful enterprises don’t just adopt BaaS. They adapt it, revisit it, and refine it as they grow.
At ConnectPay, we’re here to support that evolution – whether you’re building from scratch or looking for smarter ways to expand what you already have.
Let’s make finance feel like momentum – not maintenance.
