Two thirds of European SMEs plan to implement real-time payments

More than two-thirds (68%) of European small and medium enterprises (SMEs) are planning to adopt real-time payment processing in the next 12 months, according to new research by Vodeno.

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.

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, labelling 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 at Vodeno, said “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.”