Four in 10 UK small and medium-sized businesses say payment providers are failing to give them the support they need, according to new research from payment technology company DECTA.
Its latest whitepaper, What Do Merchants Want From Their Payments Providers?, looks at the evolving priorities of the businesses that form the backbone of British commerce.
Based on a survey of 500 UK SME decision-makers, the research finds a resilient SME sector, with 82 per cent of merchants optimistic about their business survival over the next three years.
However, this confidence is tempered by a significant delivery gap in the payments industry. While 60 per cent of merchants feel supported by technology providers, 40 per cent feel the industry is falling short, citing high fees, slow integration and a lack of transparency as primary frustrations.
Key findings
- Security is non-negotiable: 51.8 per cent of merchants prioritise security above lower fees and the latest technology
- The cash flow crisis: Slow access to funds remains the single largest pain point, affecting nearly 20 per cent of all SMEs
- Global ambitions: Over half (53.8 per cent) of UK SMEs now sell worldwide, yet 20 per cent report that the international payment experience is worsening
- Pricing Pressures: 40.8 per cent of merchants expect to raise prices in the next three years due to persistent cost pressures
A standout finding from the report is the security-first mindset. More than half of all respondents stated they would choose payment infrastructure they can trust over chasing the latest tech innovations or reducing interchange costs. This sentiment is even stronger among micro-businesses, where 62.1 per cent prioritise security above all else.
Scott Dawson, CEO of DECTA, said: “SMEs are the bedrock of the UK economy, supporting 27 million jobs and contributing £4.5trillion in annual turnover. 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. With over 50 per cent of merchants putting security above everything else, the industry must move away from a one-size-fits-all mindset and focus on reliability, faster settlements and transparent pricing that reflects the real-world challenges SMEs face.”
Dawson, who is also chairman of the Payments Innovation Forum, highlighted the growing mainstream adoption of alternative payment methods. Nearly 20 per cent of merchants now identify buy now, pay later (BNPL) as a top customer priority, while interest in open banking and even cryptocurrency continues to grow among high-turnover segments.
