UK-based accounting and business management software provider Sage has announced partnerships with Mastercard and Adyen to support the development of integrated financial services for small businesses in the European markets where it operates.
Under the agreements, Mastercard will act as Sage’s card network partner and support the service’s debit card features. Adyen will provide the BaaS infrastructure and integration services for the initial deployment in France. The service will combine business account, debit card, payment, and reconciliation functionality within Sage software, and is designed to complement customers’ existing banking relationships rather than replace them.
France first, wider European rollout to follow
The first deployment is planned in France for Sage 50, Sage 100, and Sage Active. After the French launch, Sage intends to extend the service to other European markets where it has a presence. The company has said it will adapt its approach and choice of partners market by market as its European strategy develops, meaning Adyen’s confirmed role currently covers the French rollout.
Derk Bleeker, Chief Commercial Officer at Sage, described the deployment as part of the company’s European BaaS strategy and a step towards enabling customers to manage more of their financial transactions from within Sage.
How the service works
At the centre of the offering is a business account intended to support day-to-day cash movements and connect with customers’ accounting processes. Users will be able to make payments, manage business expenses with debit cards, and link banking transactions to their accounting workflows in Sage.
Accounting entries are updated automatically as funds move. According to Sage, this gives businesses a real-time view of their cash flow and reduces the need to switch between systems, re-enter information, or reconcile transactions separately. The integration is also expected to broaden the functionality that Sage’s partners can offer to their own small business customers.
Embedded finance and SMB demand
The partnerships come as small businesses across Europe manage their finances with a growing number of tools. Accounting software is now one component of a wider financial ecosystem, while new e-invoicing and digital reporting obligations are being introduced in market after market.
Research cited in the announcement points to demand for consolidation. A Mastercard study found that European SMEs use an average of five digital tools in their operations, with 70% considering the integration of these tools essential. Separately, an Oliver Wyman study found that 53% of SMEs surveyed in France, Germany, and the Netherlands regard accounting and enterprise resource planning (ERP) software as their preferred platform for accessing integrated financial products, while 64% planned to use new or additional integrated financial products through their software vendor within the following 12 months.
Nicole Olbe, President EMEA at Adyen, framed the agreement in terms of embedded finance, stating that financial services are becoming an integral part of the platforms businesses already use and that the infrastructure would allow Sage to scale its software into a financial management hub. For Adyen, whose platform is primarily positioned towards large enterprises, the partnership provides a route to small businesses via Sage’s software. Mark Barnett, Global Head of Small and Medium Enterprises at Mastercard, said the company sees an opportunity to extend this integrated approach to small businesses globally, beginning in Europe.
