DECTA research has found that 40% of UK SME merchants feel underserved by current payment technology providers, despite strong optimism among smaller businesses about their survival over the next three years.
The payment technology company’s whitepaper, What Do Merchants Want From Their Payments Providers?, is based on a survey of 500 UK SME decision-makers. It found that 82% of SME merchants are optimistic about survival through 2029, but many remain frustrated by high fees, slow integration, limited transparency, and delays in accessing funds.
Security emerged as the strongest priority. DECTA found that 51.8% of merchants prioritise security above lower fees and the latest technology, while slow access to funds remains the largest single pain point, affecting nearly 20% of SMEs. More than half of UK SMEs surveyed, 53.8%, now sell worldwide, yet 20% said the international payment experience is worsening.
The findings show a market where payment innovation is not always aligned with merchant needs. While providers compete over features, alternative payment methods, embedded finance, and checkout technology, many smaller companies remain focused on fundamentals: reliability, settlement speed, fraud protection, transparent pricing, and simple integration.
Scott Dawson, CEO of DECTA, said: “SMEs are the bedrock of the UK economy, supporting 27 million jobs and contributing £4.5 trillion in annual turnover. Our research shows these businesses don’t just want the next big feature – they want the fundamentals done right.”
He added: “Trust is the most valuable product we can offer. With over 50% 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.”
Smaller merchants are balancing wage costs, energy bills, rent, tax complexity, supply costs, consumer caution, and financing conditions. Payments infrastructure sits directly inside cash flow. Slow settlement can affect supplier payments, payroll, stock replenishment, and short-term liquidity. A delay of even a few days can create pressure when margins are tight.
Security concerns are also rational. Smaller merchants are frequent fraud targets because they may lack dedicated security teams, sophisticated monitoring, or the negotiating power of large retailers. Payment providers therefore carry a trust role that extends beyond transaction processing. Their systems shape how companies manage fraud, chargebacks, authentication, data protection, and customer confidence.
The international payments finding is significant because cross-border selling has become more accessible, but not necessarily simpler. SMEs using marketplaces, ecommerce platforms, social selling, or direct websites can reach overseas customers more easily than before. Currency costs, settlement delays, chargeback risk, local payment preferences, compliance requirements, and tax complexity still affect the experience.
Alternative payment methods are also gaining ground. DECTA said nearly 20% of merchants identify buy now, pay later as a top customer priority, while interest in open banking and cryptocurrency is growing among higher-turnover segments. That does not mean every merchant needs every method, but payment stacks are becoming more strategic as expectations vary by age, sector, geography, and ticket size.
The research challenges providers to separate useful innovation from feature noise. A small company may welcome new payment options, but only when they improve conversion, reduce cost, strengthen cash flow, or build trust. Complexity without operational benefit becomes another burden.
Payment-provider selection now sits across finance, risk, and customer experience. The strongest providers will be those that combine security, transparent economics, fast settlement, international capability, and practical support. DECTA’s research suggests many SMEs still believe the industry has work to do before that promise is delivered consistently.
