Running a business in the UK today means keeping up with fast-changing customer expectations and a payment landscape that never stops evolving. From local shoppers to international visitors, consumers want convenience, security, and flexibility at checkout.
But many UK merchants still struggle with issues that can directly impact sales, customer experience, and long-term growth. Below we highlight the top five payment challenges UK businesses face—and how to solve them.
1. High Transaction Fees and Hidden Costs
The Challenge:
Card networks and traditional bank transfers often charge high fees, especially for cross-border transactions. On top of that, currency conversion costs can quietly eat into profit margins.
The Solution:
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Compare providers carefully and choose transparent fee structures.
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Consider alternative payment methods like Alipay+, WeChat Pay, and UnionPay, which often have lower cross-border costs.
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Use a payment partner that offers competitive FX rates and clear reporting.
2. Slow Settlement and Cash Flow Delays
The Challenge:
International wire transfers can take 3–7 working days. This delay makes cash flow planning difficult and may even affect suppliers or payroll.
The Solution:
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Choose providers offering faster settlement cycles (T+3 or faster).
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Integrate real-time monitoring so you always know when funds are arriving.
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For businesses dealing with international customers, digital wallets and Faster Payments can significantly reduce settlement times.
3. Payment Challenges with International Customers
The Challenge:
Many merchants still rely only on debit/credit cards. But international students, tourists, and Asian consumers often prefer to pay with familiar wallets like Alipay or WeChat Pay. If their preferred option isn’t available, they may abandon the purchase.
The Solution:
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Offer a multi-payment gateway that supports cards, bank transfers, and global e-wallets.
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Provide both in-store QR payments and online checkout wallets for a seamless experience.
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Promote accepted payment methods at checkout (both physical signage and online icons) to build trust.
4. Complex Reconciliation and Reporting
The Challenge:
Handling multiple payment channels means scattered transaction data, manual reconciliation, and time-consuming reporting. This creates operational inefficiency and room for errors.
The Solution:
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Use a centralised merchant portal to track all transactions in one place.
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Automate settlement reports with export options (CSV, Excel, PDF).
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Set up daily or weekly transaction summaries so finance teams save time on reconciliation.
5. Fraud Risks and Compliance Burden
The Challenge:
UK merchants face strict FCA regulations, PCI DSS requirements, and increasing fraud attempts. For smaller businesses, keeping up with compliance and fraud prevention can be overwhelming.
The Solution:
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Partner with an FCA-regulated PSP that provides built-in fraud detection, SCA (Strong Customer Authentication), and chargeback management.
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Regularly update your payment systems to meet security standards.
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Educate staff on fraud signals and best practices to prevent losses.
Final Thoughts on Payment Challenges
The UK payment landscape is changing rapidly, and merchants who fail to adapt risk losing both customers and revenue. By addressing these five challenges—fees, settlement, payment diversity, reconciliation, and fraud—businesses can create a smoother, safer, and more profitable payment experience.
At GlobePay, we specialise in helping UK merchants overcome these pain points with an all-in-one solution:
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Multi-currency acceptance (GBP, CNY, EUR and more)
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Seamless integration with Alipay+, WeChat Pay, UnionPay
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Fast settlement cycles and transparent pricing
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A centralised merchant portal with real-time monitoring
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FCA-regulated, PCI DSS Level 1 compliance
👉 Whether you’re a retailer, restaurant, education provider, or service business, GlobePay ensures you never lose a sale because of payment challenges.
