Hospitality and embedded payments: A new strategic imperative

Few software companies can claim the longevity and adaptive agility of RMS. Founded in 1983 in Australia, RMS has evolved into a global property management software provider, serving over 7,000 properties across 70 countries. In a recent conversation on Ian Presents Embedded Finance, I shared some insights on RMS’s transformation, particularly our recent entry into embedded payments and our future ambitions in the embedded finance space.

A 40-year-young startup spirit

Despite being a four-decade-old company, RMS is anything but outdated. Since joining the team in December, RMS has entered its next phase of growth, centred on innovation, customer-centricity, and financial technology.

What sets RMS apart is our foundational commitment to listening to customers. This ethos, instilled by founder Peter Buttigieg, remains the backbone of RMS's product development and customer engagement strategy. From humble beginnings serving caravan parks and campgrounds, RMS now powers operations for five-star resorts, serviced apartments, and boutique hotels worldwide.

The pivot to embedded payments

In recent years, RMS identified a significant pain point for our customers: payment reconciliation. Many operators, such as hotels and holiday parks, were spending hours manually reconciling payments, often in the late hours of the night. Recognising an opportunity to drive efficiency and customer satisfaction, we decided to integrate embedded payments directly into our core platform.

While RMS had basic payment integrations for over five years, true embedded payments became a strategic focus only in the past 12 to 24 months. The impact has been dramatic. Despite production adoption reaching only about 10% of our customer base, RMS now already processes nearly $100 million in monthly transactions.

This is just the beginning. With a 50-60% adoption goal over the next 12 to 18 months, embedded payments are poised to significantly reshape RMS’s revenue mix, introducing higher gross margins and enhancing long-term customer value.

Aligning with our investors

Advent Partners, a private equity firm based in Melbourne, backs RMS. This relationship is highly beneficial to RMS and ideally suited to our stage of growth, as private equity provides the capital, alignment, and strategic patience necessary to scale effectively, without the pressure of quarterly public earnings.

The growth of embedded payments has caught investors' attention, not just for its revenue potential but also for its ability to increase customer stickiness and reduce churn. Solving real problems for customers naturally aligns with investors' interests, who are now more balanced in their expectations. Gone are the days of "growth at all costs." Instead, investors, particularly those in private equity, look for smart, sustainable growth metrics, such as the Rule of 40, where revenue growth plus profit margin equals or exceeds 40%. We are working toward that balance by integrating value-adding features like payments without sacrificing operational discipline.

Beyond payments

Looking ahead, I see vast potential in expanding our embedded finance offerings. Beyond just processing payments, the company envisions providing short-term lending, invoice factoring, and other capital solutions. The rationale is simple: RMS already possesses rich data on customer financial behaviour. With the right partnerships and infrastructure, the company could offer financing solutions tailored to the needs of hospitality businesses.

Although I am early in my RMS journey, it is clear to me that embedded finance will be a strategic pillar for RMS in the years ahead. Leveraging data for smarter lending decisions could unlock significant new value for both customers and the company.

Lessons for fellow SaaS entrepreneurs

For SaaS founders exploring embedded payments, these are my top four recommendations:

1. Get smart on payments: Payments are notoriously complex. Understanding the terminology, infrastructure, and economics is crucial before launching any solution.
2. Know your customer’s money flow: Observe how your customers currently handle payments. Identify bottlenecks or risks like fraud and reconciliation burden, then offer embedded solutions that directly address these pain points.
3. Pick the right partners: From acquirers to processors, strong partnerships are essential. A capable partner like Adyen, RMS’s provider, can dramatically accelerate product and operational readiness.
4. Focus on team and metrics: Investors are increasingly scrutinising management quality, unit economics, churn, and customer lifetime value. Building a durable SaaS + Fintech model requires a focus on both operational excellence and long-term financial health.

Future-proofing RMS

With a strong partner ecosystem, embedded payments and robust core capabilities, RMS Is already a true hospitality platform. Our ambition is to centralise core property management capabilities while offering integrated services that increase revenue, streamline operations, and delight guests. Whether it's optimising occupancy or simplifying checkout, RMS wants to be the digital backbone for modern accommodation providers.

With heavy investment in product development, payments, and eventually broader financial services, RMS is doubling down on innovation. The hospitality industry may have been a technology laggard, but the pace of change is rapidly accelerating. Now it’s about applying known solutions with modern tools—and we fully intend to lead that charge.

Final thoughts

Embedded payments are proving to be a transformative feature, not just financially, but in how they deepen our relationships with our customers, something we all feel passionate about. As we look toward embedded finance and a broader platform play, we feel well-positioned to shape the future of hospitality technology.

RMS may have a 40-year history, but it feels like a startup again—focused, agile, and customer-obsessed.

By Adam Seskis
CEO

4 min read