Payment platforms poised to gain as consumers, SMBs push for smarter finance

By Puja Sharma

UK consumers and SMBs are thinking more strategically about their finances, opening the door for payment platforms to deliver integrated solutions that drive greater value and engagement 

Marqeta’s sixth annual State of Payments Report reveals widespread interest in smarter payment platforms to unlock growth for small to medium-sized businesses (SMBs) and meet growing consumer demands amid ongoing economic pressures.  The annual State of Payments report expanded this year to survey a total of 1,000 SMBs along with 3,000 consumers across the US and UK, finding that consumer and SMB demand for flexible, real-time and digitally integrated payment experiences is increasing and accelerating the need for payment platforms to deliver.

Consumers Shift From Passive to Strategic Payment Users 

UK consumers are driving a shift in the payments industry, demanding smarter tools that make every transaction work hard for them. Consumers want intelligent solutions that integrate easily into existing payment methods, with 34% of UK consumers surveyed saying they are interested in AI-powered wallets that can automatically optimise payment choice based on their spending habits and preferences, and 49% saying they’d want one that recommends which payment method, credit, BNPL or debit, to use for each purchase.

“Marqeta’s State of Payment Report signals a move beyond simply choosing a payment method or processing a transaction,” said Marcin Glogowski, SVP, Managing Director for Europe and UK CEO, Marqeta. “Consumers are thinking strategically about their payment methods, seeking more convenience and choice and requiring payment providers to offer the options that deliver the most value in real-time based on their specific needs.”

An example of the shift towards strategic thinking is how UK consumers have adapted to the ongoing growth and usage of Buy Now, Pay Later (BNPL) solutions. Around 54% of UK consumers surveyed have used BNPL, which is higher than the 38% of US consumers surveyed, indicating widespread adoption in the country. While BNPL was originally designed to split payments on big-ticket purchases, it has now evolved into a tool for everyday spending:

• Savvy consumers are using BNPL to strategically manage their cash flow, using it for smaller purchases such as food delivery and groceries:  16% of UK consumers surveyed who use BNPL now use it for grocery shopping, and 14% of UK consumers surveyed who use BNPL now use it for food delivery services.
• Supporting this trend, Marqeta’s platform data shows that the average order value decreased by 9% year-over-year in the first five months, indicating a shift toward more non-discretionary, small-ticket items such as groceries.

UK SMBs Seek Innovative Payment Solutions That Fuel Their Growth

The report reveals that UK SMBs are actively looking for payment solutions that save money and advance their growth.  One of the most pressing challenges for UK SMBs remains access to capital and increased cash flow. While SMBs are the backbone of the UK economy, generating £2.8 trillion in revenue, they account for only £62.1 billion in business loans – 45 times less than the amount of revenue they generate for the economy – illustrating a deep mismatch between economic contribution and financial support. Marqeta’s report shows that 42% of UK SMB owners surveyed rely on personal cards to fund business expenses, citing higher credit limits and better rewards as reasons why. This highlights a strategy for credit access, as many still struggle for it without modern business card solutions and data-driven underwriting models that look beyond traditional credit scores.

“UK SMBs need smarter, more flexible payment solutions that not only support their day-to-day operations but also actively fuel their long-term growth,” continued Glogowski. “As SMBs raise their expectations for financial tools, payment providers that can deliver real-time and modern solutions that reward businesses will be best positioned to capture this growing demand.”

According to the report, UK SMBs also want tools that act as strategic assets, with more than half (52%) of SMBs surveyed viewing payments as a strategic lever helping them streamline expenses, boost operational efficiencies, and free up cash flow. Marqeta’s survey shows that 90% of UK SMBs surveyed are prepared to invest in new solutions with higher upfront costs if it means long-term savings and greater efficiency, underscoring the rising need to deliver these tools.