UK SMEs seek faster, more secure payment solutions

Nearly two in five UK small and medium-sized enterprises (SMEs) have felt underserved by their payment technology providers, despite remaining optimistic about future growth, according to new research.

The findings, published in a recent study, have been based on a survey of 500 UK SME decision-makers. While 82% of respondents have expressed confidence that their businesses will survive over the next three years, 40% said payment providers have failed to meet expectations, pointing to high fees, slow integrations and limited pricing transparency.

The research has highlighted security as the leading priority for merchants. More than half of respondents said they would prioritise secure payment infrastructure over lower costs or access to the latest payment technologies. Among micro-businesses, the figure rose to more than 62%, underscoring the importance of trust in payment services.

Cash flow has remained another major concern. Nearly one in five SMEs identified slow access to funds as their biggest payments challenge, while more than half reported selling internationally. However, one in five merchants said the cross-border payment experience has deteriorated, reflecting ongoing challenges in international settlement and payment processing.

The report also found that 40.8% of SMEs expect to increase prices over the coming years as operating costs continue to rise, adding further pressure on businesses already managing tight margins.

Scott Dawson, Chief Executive Officer of DECTA, said: “SMEs are the bedrock of the UK economy, supporting millions of jobs and generating significant economic activity. Our research shows these businesses don’t just want the next big feature – they want the fundamentals done right. Trust is the most valuable product we can offer.”

Dawson added that payment providers should focus on delivering reliable infrastructure, faster settlement times and transparent pricing rather than adopting a one-size-fits-all approach.

The research has also pointed to changing payment preferences, with growing merchant interest in alternative payment methods. Nearly one in five respondents identified Buy Now, Pay Later (BNPL) as an increasingly important customer payment option, while demand for open banking and cryptocurrency payments has continued to rise among larger businesses.

The findings have suggested that payment providers will need to balance innovation with reliability as UK SMEs increasingly seek secure, efficient and transparent payment infrastructure to support domestic and international growth.