The Merchant Confidence Gap: Why 36% of UK SMEs Are Losing Faith in the Payments Industry

New research from DECTA reveals that over a third of UK SME merchants believe Britain is no longer a viable place for business, citing high costs and poor access to funding. For fintech providers, the findings signal a critical demand for simpler, more affordable payment solutions to bridge a widening confidence gap in the current economic climate.

What was announced

DECTA’s latest research highlights a significant divide in the sentiment of UK small and medium-sized enterprises (SMEs). While a majority (61%) of merchants maintain a positive outlook, 36% of respondents stated that Britain is not a good place to do business. This dissatisfaction stems from a perceived lack of support from both government policy and the financial services sector.

The study identifies specific levers that could improve merchant sentiment. Among the dissatisfied cohort, 13% indicated that their minds would change if the government lowered costs and improved access to funding. Significantly, 12.6% of respondents pointed directly at the UK finance and payments industry, calling for services to be made cheaper and simpler. This puts the payments sector nearly on par with the Treasury as a primary obstacle to business confidence.

Scott Dawson, Director & CEO UK at DECTA, is examining these factors in detail, focusing on the cost of doing business and the impact of regulation. The research specifically questions whether merchants feel adequately supported by the finance and payments industry. The findings suggest that a notable portion of the SME market views the complexity and expense of existing financial infrastructure as a barrier to growth, placing the onus on providers to justify their value proposition.

The companies involved

DECTA is a global payment processing company that provides end-to-end solutions for merchants, banks, and fintechs. Headquartered in London, the firm offers a range of services including acquiring, white-label card issuing, and payment gateway technology. DECTA has established itself as a key player in the UK and European markets, focusing on modular technology that allows businesses to scale their payment infrastructure without the burden of legacy systems.

The company operates in a highly competitive landscape, positioning itself as a partner for SMEs that require more flexibility than traditional high-street banks often provide. Under the leadership of Scott Dawson, Director & CEO UK, DECTA has increasingly focused on the specific pain points of the British merchant community, particularly those navigating the complexities of post-Brexit regulation and shifting consumer payment preferences. The firm’s presence in the UK market is defined by its attempt to simplify the technical hurdles of payment acceptance while maintaining compliance with local and international financial standards.

What FF News has reported before

FF News has tracked DECTA’s expanding role in the SME ecosystem, notably reporting on the launch of DECTA and SAPI Launch DECTA Capital to Provide Flexible Financing for UK SMEs in September 2026. This move directly addressed the funding gaps highlighted in the current research. Earlier that year, the publication covered how DECTA Taps OpenPayd to Streamline International Treasury Settlement via Stablecoin Infrastructure, showcasing the firm's focus on modernising back-end operations. Our coverage has also highlighted broader industry issues, such as when research found 40% of UK SMEs Underserved by Payment Tech as Cash Flow Crisis Looms. Additionally, DECTA’s technical partnerships, including a deal with DECTA and actuary.aero to Drive Smarter Risk Management Through Data Intelligence, demonstrate its ongoing investment in data-driven decision-making.

What this means

This research serves as a wake-up call for the UK fintech sector. When nearly 13% of struggling SMEs view payment providers as a primary barrier to their success—ranking them alongside government policy—it suggests that the industry’s promise of "democratising finance" has not yet reached the grassroots level. The pressure is now on payment processors and neobanks to move beyond basic functionality and address the transparency of their fee structures. As SMEs face mounting macroeconomic pressures, the fintechs that will win the market are those that can strip away complexity and offer genuine cost-efficiency, rather than just another digital interface.