Cash flow woes? 8 in 10 UK businesses are upgrading their payment game

By Gloria Methri

As businesses navigate an evolving economic landscape in 2025, efficient payment processes are emerging as a key factor in fostering strong buyer-supplier relationships and driving business growth.

According to the latest Amex Trendex: B2B Payments Edition, 80% of businesses plan to improve their payment processes in the coming year. Yet, despite recognising the advantages of automation, many companies have to embrace it fully.

A staggering 91% of business decision-makers agree that easy, streamlined, and secure payments are fundamental to business success. However, the report reveals a significant gap between awareness and adoption: only 17% of businesses have fully automated their payment processes, while 15% have not automated any aspect at all.

Late and slow payments remain a persistent issue, with 26% of businesses stating that such delays have led them to stop working with a buyer or supplier. Additionally, trust is at stake, as 82% of business leaders acknowledge that a single fraud incident could significantly damage their relationships.

The Benefits of Payment Automation

Beyond operational efficiency, payment automation delivers clear financial and strategic advantages. Automated payments, including digital push payments and virtual cards, enhance cash flow visibility, reduce human errors, and improve financial security.

With automation, businesses can save time and money, ensure on-time payments, and reduce administrative burdens. Notably, 29% of business leaders admitted they would sleep better at night if they didn’t have to worry about payment accuracy and timeliness.

Despite the clear benefits, several challenges continue to hold businesses back from fully automating their payments. The top concerns cited by decision-makers include:

• Cost of implementation (45%)
• Uncertainty about the benefits (28%)
• Security risks (26%)

“Often, business leaders perceive automation as a daunting investment,” noted R.J. Ancona, Vice President and General Manager of B2B Product, Partnerships and Client Management at American Express. “However, the transition can be more straightforward than expected, delivering both short- and long-term benefits.”

As UK businesses prepare for 2025, the focus is on adopting digital and automated solutions to streamline operations. The Amex study found that 43% of companies planning payment changes are doing so to drive growth. Key technologies set to redefine B2B payments include:

• Automated Accounts Payable (AP) & Accounts Receivable (AR) software – reducing errors and improving cash flow.
• Straight-through processing for virtual cards – eliminating manual intervention.
• Electronic Invoice Presentment and Payment (EIPP) – digitising invoicing and payment collection.
• Digital Push Payments – allowing payers to control transaction flow securely.

With 95% of business decision-makers agreeing that seamless payments create happier customers, companies that embrace automation will gain a competitive edge in 2025. As digital transformation continues, optimising payments will be integral to strengthening business relationships and unlocking new growth opportunities.