Europe: SMEs looking to expedite payment processing
October 12, 2022
A recent study by banking-as-a-service (BaaS), Vodano, recently commissioned a survey among 2,400 senior European decision makers in small and medium businesses (SME)
This survey revealed many businesses are not happy with the swiftness they receive their money after a purchase. More than half of correspondents admitted they are looking to adopt real-time payments within the next year.
There were 504 correspondents in the UK, 500 in Belgium and 500 in the Netherlands, and altogether only 10% of SMEs revealed they receive payments instantly. 11% receive payments within an hour, 25% receive it in one day and a whopping 35% revealed payments take up to three days to reach their accounts.
As a business, receiving payments quickly is incredibly important. It helps with growth, especially internationally. 23% of surveyed SMEs revealed the delays are problematic.
In addition to waiting for payment, the research found that 61% of aforementioned SMEs are currently having issues with foreign exchange rates. Businesses have emitted this is “a significant drain on resources”.
Change
Change is on the horizon for more than half of these companies, as 57% revealed they are looking to change their payment provider within the coming year. These businesses have priorities they will consider when looking for this new provider. The most important factors are speed and ease of payments (37%), cost-effectiveness, and last but not least. Security guarantees and compliance standards (29%).
This should not come as a surprise, as the payment landscape is constantly seeing new companies eager to be the next big thing in payments. There is no reason why high fees and slow payment processing should affect SMEs.
"Speed, ease and cost of payments is 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."
Want to learn more? Check out The Fintech Times full write-up here.
Share your thoughts on our LinkedIn page.
SMEs: Analyzing 2023 And What to Expect in 2024
Mobile Payments: Will They Dominate The Market?
