Private equity firms have been active in the payments sector, yet SaaS portcos are missing a significant monetization opportunity, according to a new Bain & Co report. In Europe, PE-backed software platforms process nearly €1 trillion in payment flows, but fewer than 10 percent of companies include a payments monetization strategy in their value creation plans. The uncaptured revenue could reach €2.5 million to €5 million annually for a hypothetical exemplary portfolio company in a high-frequency consumer vertical with €50 million in ARR and over €500 million in payment volume.

This value is increasingly vital as buyouts now require about 12 percent annual EBITDA growth to hit target returns, up from 5 percent previously. Many SaaS companies face pressure from investors weighing the impact of artificial intelligence on business models. The issue persists because payments infrastructure often sits outside the traditional operating-partner toolkit, falling between classic commercial and cost levers.

Capturing this value requires fintech and compliance expertise most portfolio companies lack in-house. The problem is worse in Europe due to a more fragmented software landscape and thinner card fee pools compared to the US market. Bain recommended shifting from referral arrangements to embedded models, automating financial operations, and cutting fraud losses via modern machine-learning-based models.

The report also highlighted the potential of agentic AI, citing a reconciliation agent that flags anomalies, drafts resolutions, and routes exceptions for approval, though the execution of payments itself must remain deterministic.