DNA Payments Partners with iwoca to Offer UK SMEs up to £1M Embedded Funding

DNA Payments has partnered with iwoca to integrate flexible business loans directly into its merchant ecosystem, allowing UK small businesses to access up to £1 million in funding. This move signals a growing trend of embedded finance where payment providers leverage transaction data to streamline credit access during periods of significant macroeconomic volatility.

What was announced

The partnership introduces the iwoca Flexi Loan to DNA Payments’ existing suite of merchant services, creating a unified financial hub for its clients. Small and medium-sized enterprises (SMEs) using DNA Payments can now apply for funding ranging from £1,000 to £1 million without leaving their primary business environment. The application process is entirely digital and integrated into the DNA Payments Merchant Portal and App, with the companies stating that approvals are typically processed within minutes, providing a stark contrast to the lengthy manual processes often associated with traditional commercial lending.

This expansion of merchant funding options is specifically designed to address the operational hurdles currently facing the UK’s small business sector. Data from iwoca’s latest SME Expert Index highlights the urgency of such financial tools; 78% of finance brokers anticipate that supply chain disruptions will negatively affect small business performance in the near term. Furthermore, 70% of brokers report that their SME clients are increasingly worried about rising energy prices, while 54% identify general running costs as the primary concern for business owners. By adding term loans to its funding options, DNA Payments is positioning itself to support clients during a period of high volatility, ensuring that finance fits around the practicalities of running a business rather than acting as a separate administrative burden.

"This partnership means more businesses can access funding exactly where they already are - inside the tools they use every day. Funding should meet the needs of actually running a business. That's what every business owner goes through and accessing finance should fit around that."

Harry Cranfield, Head of Partnerships at iwoca.

The companies involved

DNA Payments is one of the largest independent payment companies operating in the United Kingdom, serving a diverse merchant base with a focus on reliability and technological integration. The firm provides a comprehensive range of omnichannel payment solutions, including point-of-sale (POS) terminals for physical retail and sophisticated online payment gateways for e-commerce. This infrastructure allows merchants to manage their entire transaction flow through a single provider. The company is led by Chief Executive Officer Colin Neil, who brought extensive industry experience to the role following his previous tenure at the global payments giant Adyen.

iwoca stands as one of Europe’s most prominent SME lenders, focusing on providing fast and flexible credit to small businesses that are often underserved by traditional high-street banks. Since its inception, the lender has prioritised digital-first applications and automated risk assessment to shorten the time between application and funding. The company operates across multiple European markets and has increasingly focused on partnership-led growth, embedding its lending products into the platforms of banks, neobanks, and payment processors to reach business owners at the point of need. This strategy allows iwoca to leverage the data already held by partners to streamline the credit assessment process.

What FF News has reported before

FF News has closely followed iwoca’s expansion and its strategic moves within the UK financial landscape. The lender recently made headlines for its significant capital injection, as iwoca Secures £250m Funding from Major UK Bank and Waterfall Asset Management. This followed the launch of new tools designed to improve transparency for small firms, such as when iwoca Launches Credit Compass to Help Millions of SMEs Understand and Improve Their Business Credit Score. The company has also been active in the partnership space, notably when Starling Bank Partners with iwoca to Offer Business Loans Up to £1M and through a collaboration where Binq Partners with iwoca, Providing Open Banking Powered Funding to the UKs 5.5m SMEs.

What this means

This partnership underscores the intensifying pressure on traditional banks as independent payment providers and fintech lenders consolidate their hold on the SME market. By embedding credit directly into the merchant portal, DNA Payments is effectively removing the friction that often drives small businesses toward their primary banking providers for capital. This move suggests that the future of SME lending lies in "contextual finance," where the ability to lend is tied to the real-time visibility of a merchant's cash flow through their payment processor. As supply chain and energy costs continue to squeeze margins, the speed of approval offered by such digital integrations will likely become the primary differentiator for business owners choosing a financial partner.