The state of SMB payments: What the data tells us across markets

Before breaking down the consolidated global data, it’s worth looking at regional nuances. The path to adoption varies by market, and will shape how you position your platform to local SMBs. 

• The US runs on cash flow. Faster access to funds is a vital differentiator, with 55% of SMBs adopting for speed. Still, 51% of non-adopters claim their current setup "works," but relying on legacy processes can be a costly compromise. Read the state of SMB payments in the US →

• The UK runs on flexibility. 52% of UK SMBs adopt embedded payments specifically for payment choice. Yet the UK is the only market where “previous implementation issues” is one of the top factors stalling deals. Read the state of SMB payments in the UK →

• Germany runs on structure. 40% of SMBs remain tied to manual invoicing, while another 33% hesitate over compliance. Early adopters, however, unlock instant ROI: replacing manual work with fully automated financial workflows. Read the state of SMB payments in Germany (Note: This is written in German) →

65% of SMBs use embedded payments. However, embedded payments adoption varies based on the software a business uses, how many people it employs, and what industry it operates in. 

• Software type: SMBs using industry-specific platforms adopt at 72%, compared to 60% on general finance software.

• Company size: SMBs with 51 to 250 employees adopt at 72%, compared to 61% for those with 50 or fewer. 

• Industry focus: Food and beverage leads at 79% while professional services sits at 59% — highlighting the difference between a high-volume restaurant group and a traditional accounting firm.

It's a useful signal for platforms selling horizontally. Reach puts you in front of the business, but industry fit is often what wins it.

SMBs leveraging embedded payments see clear improvements: faster payouts, effortless customer experiences, and a reduced admin burden. 

Sentiment also improves as familiarity with the product grows. Among active users, 56% view embedded payments as “very positive”. That number drops to 44% for businesses still weighing the decision, and falls to 13% for those with no plan to adopt. 

But saving time is only half the battle. Many local businesses don't realize how many sales they're losing at the point of purchase: long lines that cause walkouts, failed card taps, or customers leaving because their preferred payment method isn't accepted. Without that visibility, payments remain a cost to manage rather than a lever to grow revenue.

For SaaS platforms, this is a strategic opening. The SMBs capturing the most value from embedded payments are those that can clearly measure the returns. Prove the real ROI, and you move from a payment vendor to a true operational partner.

For SMBs that have yet to adopt, the primary barrier is comfort with what already works. Across markets, 44% state their “current process works”, ahead of concerns about cost, capability, or security. 

This fundamentally shifts who SaaS platforms are competing against. SMBs are less likely to compare payment providers and more likely to compare against “changing nothing.” For many, “doing nothing” wins.

However, non-adopters don’t all think alike. One in three are considering embedded payments within the next 12 months. For this group, hesitations focus on the switch itself: 

• 23% want to keep payments separate to maintain control

• 19% had technical trouble during a previous implementation attempt

The SMBs comfortable with the status quo need a concrete case for why standing still can be costly: slower cash flow, more manual work, a more fragmented checkout experience. 

For SMBs already evaluating a move, the focus shifts to risk mitigation: giving them the confidence that switching will be seamless, reliable, and supported from day one.

A long-held belief is that banks are the only place to open a business account, issue a card, or secure working capital.

That assumption is shifting. When asked who they’d go to for embedded payments today, 40% of SMBs chose a software provider compared to 28% who chose a bank. 

Borrowing is following a similar path, yet more slowly. Banks still provide short-term credit to 44% of SMBs compared to 21% using software platforms. Among active embedded payments users, platform lending rises to 25%.

Beyond payments, SMBs prioritize what actually moves the needle: faster payouts, built-in accounting, and seamless POS tools. They choose providers on four simple factors: price, speed, trust, and a zero-friction signup. 

A software platform that’s proven it can reliably handle daily cash flow has already won the ultimate trust test — putting it steps ahead of legacy alternatives.

Ten years ago the primary challenge was convincing SMBs that embedded payments were worth adopting. In 2026, the mandate has shifted, and the data points in three directions: 

1. Sell where the need is already obvious. Adoption runs highest among larger SMBs, vertical platform users, and transaction-heavy sectors. These SMBs are actively seeking solutions, meaning your platform can solve existing pain points.  

2. Complete the workflow during onboarding. Connecting payments to reporting, invoicing, and cash flow visibility turns a standard integration into an indispensable tool. Many users still manage these tasks manually, unaware that alternatives exist within the software they use every day.

3. Follow demand beyond payment processing. 40% of SMBs would prefer to acquire embedded payments from a software provider than a bank, with a quarter of active users already borrowing through their platform. The demand is established — platforms just need to meet it.

Across markets, the direction is clear. The platforms that pull ahead will be those that close the gap between adoption and impact: connecting payments to the workflows, insights, and financial services that SMBs need to scale.

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The state of SMB payments in the US

Get the full report for the embedded payment trends shaping the US market.

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The state of SMB payments in the UK

Get in-depth insights on adoption, friction, and growth opportunities for SaaS platforms.

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