While consumer-focused fintech has seen waves of innovation since the early 2000s, the small and medium-sized business (SMB) sector has remained comparatively underserved. Considering SMBs generate £2.8 trillion in revenue annually and form the backbone of the UK economy, this oversight is stifling. The disparity is most glaring in funding, where SMBs in the UK only received £62.1 billion in business loans this past year, despite their significant contribution to revenue. This not only constrains individual business growth but also hampers the broader economy that relies on their success.

Payment providers now have a critical opportunity to shift their focus and address the unmet needs of the vital SMB market. The demand from SMBs for more efficient payments, intelligent cash flow tools, and flexible funding is growing, yet many are still encumbered by outdated systems and slow, manual processes.

"Today’s SMBs are looking for more than just payment processing."

‍

The growing demand for advanced financial tools

Marqeta’s 2025 State of Payments Report revealed that 90% of UK SMBs surveyed are willing to pay higher upfront costs for financial tools that deliver long-term savings and efficiency. This indicates a clear readiness to invest in solutions that offer simplicity, speed, and control. For SMBs, payments are strategic assets integral to cash flow, customer experience, and long-term growth.

The report also found that 42% of UK SMB owners use personal cards for business expenses, primarily due to higher credit limits and better rewards. This highlights a clear opening for payment providers to develop tailored payment card solutions that meet the needs of business owners. By leveraging smart, data-driven underwriting models that look beyond traditional credit scores, providers can open access to essential credit for SMBs and truly meet their needs. 

Today’s SMBs are looking for more than just payment processing. They need platforms that provide proactive, actionable insights into their spend to preempt major issues. Modern card solutions that can be instantly issued for specific purchases, fund suppliers in real time, and offer instant transaction notifications and configurable spend controls can help SMBs to better manage cash flow. With more modern payment solutions, SMBs can anticipate cash flow gaps, receive flexible repayment plans, and automatically identify fund opportunities, helping to  provide them significant market advantage.

"The future lies in frictionless experiences that consolidate payments, insights, and lending under a single, unified platform."

‍

The rise of embedded and integrated finance

Embedded finance is beginning to address the demand for advanced payment solutions by allowing SMBs to access credit directly through their payment platforms. Integrating real-time payment data with intelligent lending models enables payment providers to deliver funding precisely at the point of need, transforming payments from a passive process into an active driver of growth. This agility fosters financial resilience and helps SMBs navigate economic fluctuations with greater confidence.

For too long, the financial landscape has been fragmented for small businesses, forcing them to rely on a patchwork of disconnected tools for banking, payments, invoicing, and credit. Payment providers have the opportunity to simplify this by creating connected ecosystems that serve SMBs holistically. The future of financial services lies in offering frictionless experiences that consolidate payments, insights, and lending under a single, unified platform.

The path forward for payment providers

The message for payment providers is unequivocal: the next wave of financial innovation will be defined by the empowerment of SMBs. By delivering more than just convenience, these platforms can equip businesses with the agility and financial durability needed to thrive. The opportunity is clear, and the providers that rise to this challenge will not only capture a significant market but also power the future of the UK economy.