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Most European SMEs intend to implement real-time payments in 2023

By Puja Sharma

October 06, 2022

  • BaaS
  • BAAS Providers
  • Cross Border Payments
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SMEs Europe, payment

The study found that 68% are planning to adopt real-time payment processing in the next 12 months. At present, just 10% of SMEs said they receive payments instantly, and only 11% within an hour. By comparison, 35% said it takes between two and three days for a payment to reach their account, while 25% said the process takes approximately one day

More than two-thirds of European small and medium enterprises (SMEs) are planning to adopt real-time payment processing in the next 12 months, new research from Vodeno has revealed.

The Banking-as-a-Service (BaaS) provider commissioned an independent survey among 2,004 senior decision-makers in SMEs across the UK, Belgium, France, and the Netherlands. The results are presented in a new report: Crossing Borders – Understanding the SME Payments Landscape.

The study found that 68% are planning to adopt real-time payment processing in the next 12 months. At present, just 10% of SMEs said they receive payments instantly, and only 11% within an hour. By comparison, 35% said it takes between two and three days for a payment to reach their account, while 25% said the process takes approximately one day.

The long processing times for payments are causing major problems. More than half (52%) of the SMEs surveyed have failed to meet commitments due to slow payment processing, while even more (54%) have been forced to take out a loan as a result of missing payments that disrupted cash flow.

According to the research, the majority (62%) reported that delayed and unpredictable cash flow is the biggest challenge their business currently faces. The same number (62%) said that costly foreign exchange rate fluctuations contribute to a significant drain on their resources.

For almost a quarter (23%) of European SMEs, delays in making and receiving payments have been a hindrance to their international growth. The research also found that 61% of companies are experiencing issues with foreign exchange rates, labeling them “a significant drain on resources”.

The majority (57%) of respondents said they are planning on switching their payment provider in the coming year. Speed and ease of payments (selected by 37% of SMEs), cost-effectiveness (35%), and security guarantees and compliance standards (29%) are the most important factors for choosing a payment rail.

Nikhil Sengupta, Global Sales Director of Vodeno, said: “Speed, ease, and cost of payments are of utmost importance to SMEs, and our research underlines how high costs and lengthy delays in receiving payments are seriously hindering their day-to-day operations and growth plans.

“Instant payment processing is now on the radar for most of Europe’s SMEs, but the question is whether they can find the right partner to deliver this, efficiently without exorbitant fees. Today, there is greater choice for SMEs where payment processing is concerned, and BaaS providers are leading the charge to give access to faster payment options that are secure and cost-efficient.”

Key findings

  • Around 68% plan to adopt real-time payment processing in the next 12 months
  • At present, just 10% of SMEs can receive payments instantly
  • About 23% say their international growth has been hindered due to delays in making or receiving payments
  • Over 61% say foreign exchange rates are a significant drain on resources

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