BaaS stands for "Backend as a Service" and refers to a cloud service model in which developers outsource all the behind-the-scenes aspects of a web or mobile application so that they can focus on writing and maintaining the pieces users see and touch. BaaS providers handle the basic, repetitive tasks needed for smooth web or mobile applications, such as social integration, updating, and user authentication.

However, BaaS can also refer to "Banking as a Service," which is a system that allows non-bank businesses to embed financial services into their existing software. BaaS providers make it easy for businesses to access banking capabilities traditionally only offered by a licensed bank, such as monetary accounts, cards, and loans, and provide custom banking services within their platform.

Some advantages of using BaaS for financial services include convenience, speed, and a wide selection of payment options, which can improve the customer experience and overall satisfaction. BaaS technology is a digital transformation that embeds multiple types of real-time financial services and products into the business offerings of non-bank businesses.