NangPay Unveils Key Payment Challenges for UK Small Businesses: A New 2025 Study

LONDON, UK – NangPay, a leading payment solutions provider for independent retailers, today released the findings of its inaugural “UK Small Business Payments Landscape Report 2025.” The comprehensive study surveyed 2,500 small business owners across various sectors, including barbers, local shops, and indie retailers, to identify the most significant obstacles they face when taking payments. The research highlights critical pain points that directly impact cash flow, operational efficiency, and customer experience, underscoring the urgent need for tailored, transparent payment solutions.

Top Challenges Identified by UK Small Businesses

The NangPay survey pinpointed several recurring themes, revealing that despite advancements in payment technology, many small businesses still grapple with fundamental issues.

1. Unpredictable and Opaque Fees (Cited by 68% of Businesses)

The most prevalent frustration reported by small business owners was the lack of clarity around payment processing fees. Many expressed confusion over varying rates, hidden charges, and fluctuating monthly statements, making it difficult to accurately forecast expenses. “We need to know what we’re paying for,” commented one independent grocer from Leeds. “A transaction fee should be simple and upfront, not a mystery every month.”

2. Slow Payout Speeds and Cash Flow Constraints (Cited by 61% of Businesses)

A significant majority of respondents highlighted slow fund settlement as a critical challenge, directly impacting their ability to manage daily operations, pay suppliers, and handle unexpected costs. Businesses often reported waiting 3-5 business days for funds to clear, creating unnecessary financial pressure. This issue was particularly acute for businesses with tight margins or those heavily reliant on immediate cash flow.

3. Complicated Setup and Integration with Existing Systems (Cited by 47% of Businesses)

Almost half of the businesses surveyed struggled with the initial setup of new payment terminals or integrating them with their existing point-of-sale (POS) or accounting software. This often led to downtime, frustration, and additional costs for technical support, proving a barrier to upgrading outdated systems. “As a small barbershop, I don’t have an IT department,” stated a barber from Manchester. “I need something that just plugs in and works.”

4. Lack of Reliable Customer Support (Cited by 42% of Businesses)

When issues arise, access to prompt and effective customer support is paramount. Many small business owners expressed dissatisfaction with long wait times, unhelpful automated systems, and a lack of understanding from support staff regarding their specific business needs. This often resulted in prolonged payment disruptions and lost sales.

5. Restrictive Contracts and Hidden Exit Fees (Cited by 35% of Businesses)

Over a third of businesses reported feeling trapped by long-term contracts that offered little flexibility or incurred punitive charges for early termination. This lack of agility prevents them from adapting to changing market conditions or switching to more suitable payment providers when better options emerge.

NangPay CEO Comments on the Findings

Bobby Tawny, CEO of NangPay, shared his insights on the report’s implications:

“The findings of our 2025 report confirm what we’ve always believed at NangPay: small businesses are the backbone of our economy, yet they are often underserved by complex and costly payment systems. It’s unacceptable that in today’s digital age, transparency in fees, rapid access to funds, and straightforward technology remain such significant hurdles. This study isn’t just a report; it’s a call to action. It reinforces NangPay’s commitment to providing independent retailers with solutions that are not only affordable and easy to use but also entirely transparent and supported by genuine human understanding. Our mission is to empower these businesses to focus on what they do best, free from payment processing worries.”

Moving Forward: A Clear Path for Payment Providers

The “UK Small Business Payments Landscape Report 2025” serves as a crucial benchmark for the industry. It underscores the demand for payment solutions that prioritise transparency, efficiency, ease of use, and dedicated support for the unique needs of small businesses. NangPay remains dedicated to developing and offering payment services that directly address these identified challenges, fostering growth and stability within the independent retail sector.

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