Managing cash flow is a perpetual challenge for small and medium-sized businesses (SMBs). In the UK, the issue of late payments costs these enterprises billions annually, contributing to widespread financial stress and even closures. Recognizing this, Dutch payments firm Adyen and Intuit, the creators of QuickBooks, have announced a strategic partnership aimed at transforming how SMBs handle payments.
The collaboration brings together Adyen’s cutting-edge embedded payment services and Intuit’s widely used financial management platform, QuickBooks Online. This partnership promises to deliver faster, more efficient payment options to SMBs across the UK.
Adyen and Intuit: A Game-Changing Partnership
Adyen and Intuit’s partnership is built on a shared vision of empowering SMBs with tools to simplify payments. With approximately 2.9 million invoices generated monthly through QuickBooks Online in the UK, integrating Adyen’s payment capabilities directly into the platform offers SMBs a seamless way to process transactions.
For businesses that rely heavily on invoicing, timely payments can mean the difference between growth and stagnation. Adyen’s integration leverages its UK banking license and direct connection to Faster Payments Services, ensuring that businesses receive funds rapidly and without unnecessary complications.
The Economic Impact of Late Payments on SMBs
Late payments are a systemic issue for UK businesses, costing an average of £22,000 annually per SMB and resulting in 50,000 closures each year. These delays not only strain cash flow but also hinder growth opportunities.
Per data from the Office of the Small Business Commissioner, timely payments could unlock £2.5 billion annually for the UK economy. Such statistics underscore the critical need for efficient payment solutions like the one Adyen and Intuit are delivering.
How Adyen Enhances the QuickBooks Experience
QuickBooks UK already integrates with numerous payment platforms to simplify transactions for SMBs. However, embedding Adyen’s payment capabilities takes this a step further. Through this integration:
- Faster Payments: Businesses benefit from Adyen’s direct connection to real-time payment rails, reducing delays in cash flow.
- Expanded Payment Options: SMBs can offer their customers a wider range of payment methods, catering to diverse preferences.
- Streamlined User Experience: Embedding payments into the platform eliminates the need for external tools or third-party processors, saving time and reducing friction.
These improvements align with global trends in embedded finance, which has emerged as a powerful solution for streamlining financial operations.
The Role of Embedded Finance in SMB Growth
Embedded finance integrates financial tools directly into software platforms, making transactions more secure and efficient. By removing the need for external banking or payment processing systems, businesses can focus on growth instead of administrative burdens.
A recent report by PYMNTS highlighted that 64% of SMBs face delayed payments, with suppliers waiting an average of 43 days for funds. Embedded finance solutions, such as the Adyen-QuickBooks integration, address these inefficiencies by automating processes and reducing delays.
The projected growth of embedded finance solutions, expected to reach $7 trillion by 2026, reflects its transformative potential.
Future Opportunities with Adyen and Intuit
The collaboration between Adyen and Intuit marks more than just an enhancement to QuickBooks—it lays the groundwork for broader financial innovations. Adyen’s locally approved entities for payment services enable Intuit to explore further embedded finance opportunities, potentially integrating additional tools such as lending, insurance, and payroll solutions.
For SMBs, this opens doors to a comprehensive financial ecosystem that evolves with their needs, offering greater control and flexibility.
Empowering SMBs for Long-Term Success
The Adyen and Intuit partnership exemplifies how technology can drive meaningful change for SMBs. By addressing the persistent challenges of late payments and cash flow management, the collaboration equips businesses with the resources to thrive in an increasingly competitive market.
With tools like Faster Payments Services and embedded finance, SMBs can reclaim time lost to inefficiencies and focus on growth. The potential economic benefits extend beyond individual businesses, promising a ripple effect across the UK economy.
FAQs
How does the Adyen and Intuit partnership benefit UK SMBs?
This partnership provides SMBs with faster payment processing, wider payment options, and seamless integration into QuickBooks, enhancing cash flow management and operational efficiency.
What is embedded finance, and how does it help businesses?
Embedded finance integrates financial tools directly into software platforms, streamlining processes like payments, lending, and payroll. This reduces inefficiencies, enhances security, and improves user experience.
Why are late payments a significant issue for SMBs?
Late payments cost UK SMBs billions annually, with many businesses facing closures due to cash flow problems. Faster payment solutions help mitigate these challenges.
What is the projected growth of embedded finance?
Embedded finance is expected to grow from $2.6 trillion in 2021 to $7 trillion by 2026, driven by its efficiency and ease of use.
How does Adyen ensure faster payments?
Adyen uses its UK banking license and direct connection to Faster Payments Services to process transactions quickly, reducing delays in fund transfers.
What future financial tools might Intuit integrate?
Building on this partnership, Intuit may explore embedded tools for lending, insurance, and payroll, creating a comprehensive financial ecosystem for SMBs.
Conclusion
The collaboration between Adyen and Intuit is a significant step forward for UK SMBs, addressing long-standing issues with late payments and inefficiencies in cash flow management. By integrating advanced payment capabilities directly into QuickBooks, this partnership empowers businesses to operate more effectively and capitalize on growth opportunities.
As embedded finance continues to evolve, SMBs stand to benefit from increasingly seamless, secure, and efficient financial solutions. The Adyen and Intuit team-up is a testament to how innovation can transform challenges into opportunities, paving the way for a stronger, more resilient small business sector in the UK.
