Best International Payment Solutions for UK SMEs

For UK-based small and medium-sized enterprises (SMEs) operating across borders, the challenge of managing international payments is as much about cost and speed as it is about reliability and compliance. In 2023 alone, UK SMEs reportedly lost £2.8 billion to hidden foreign-exchange mark-ups and opaque fees when making cross-border payments according to research frequently cited by Wise Business. As global trade expands and supply chains stretch further, choosing the right international payment solution becomes a strategic decision, not just a back-office convenience.

Below, we explore what UK SMEs should look for in an international payments provider, dive into one standout solution (Wise) and then compare other strong alternatives. We will wrap up with a comparison table to help decide which may fit your business.

What UK SMEs really need from their international payments partner

• Transparent fees and FX mark-ups: Many traditional banks quote “zero transfer fee” but embed large spreads in exchange rates. You can compare live mid-market rates directly in tools like Wise’s currency converter to spot hidden spreads.
• Speed and payment rail efficiency: Payments sent over legacy SWIFT rails can take days and face intermediary deductions. Fintechs increasingly use local rails for faster settlement.
• Multi-currency capability and local receiving accounts: Holding funds beyond GBP, receiving in EUR or USD, and avoiding forced conversion preserves margin and flexibility. See how providers implement local accounts in multi-currency accounts.
• User-friendly interface and integrations: Teams benefit from dashboards, invoices, and APIs. Payments platforms like Stripe and fintech business accounts emphasise developer-friendly integrations.
• Compliance, regulation, and global coverage: Ensure the provider is properly licensed and supervised. The FCA register lists authorised firms operating in the UK.
• Fit for business scale and complexity: Some SMEs send occasional payments, others manage large supplier networks or multi-jurisdiction expansion. Match your needs to the provider’s strengths, then validate with a pilot.

Spotlight on a leading solution: Wise

The challenger fintech Wise stands out for UK SMEs looking to optimise international payments. Here is a breakdown:

What Wise does well

• Transparent FX: Wise uses the mid-market exchange rate and shows fees upfront, which helps eliminate hidden mark-ups.
• Multi-currency balances: UK SMEs can hold and convert between 40+ currencies via the Business multi-currency account.
• Local receiving accounts: Generate account details in GBP, EUR, USD and more so overseas clients can pay like locals, reducing friction on receivables.
• Cost savings at scale: Wise highlights potential savings versus traditional bank FX and transfer pricing in its business materials, useful as a benchmarking reference during vendor selection.
• Global reach: Payments to 70+ countries with tiered pricing and features suited to growing volumes, documented in Wise’s Help Centre.

Where Wise might not be perfect

• Not a full banking suite: Wise is strong on payments and FX, but it is not positioned as a full-service bank for overdrafts and term loans. SMEs needing broader banking often pair Wise with a current-account bank.
• Very high-volume treasury: Highly complex operations may still benefit from bespoke banking solutions or specialist treasury providers.
• Relationship banking preferences: Some SMEs prioritise branch access or lending relationships that Wise does not emphasise as a core bank function.
• Regulatory and onboarding steps: As with all fintechs and banks, KYC and compliance reviews apply, see FCA expectations on AML and customer due diligence.

In summary: If your UK SME pays overseas suppliers, receives multi-currency revenue, or holds foreign currency balances, Wise Business is a strong contender to benchmark.

Other strong international payment solutions for UK SMEs

Choosing the right solution for your UK SME

• Payment volume and frequency: Occasional cross-border payments may only need a simple tool. High-frequency and high-value flows benefit from low FX spreads and multi-currency balances, see transparent pricing pages when comparing.
• Receivables as well as payables: If you also receive foreign currency revenue, prioritise providers with local receiving accounts to avoid forced conversion.
• Need for full banking services: If you require overdrafts or lending, consider pairing a fintech with a current-account bank such as Starling Business or a traditional lender.
• Speed and transparency: Fintechs often provide clearer fees and faster delivery versus legacy rails, supported by local clearing integrations and SWIFT gpi tracking where used.
• Integrations and UX: Check for direct links to accounting tools like Xero and QuickBooks.
• Regulatory comfort: Verify authorisation on the FCA Register and ensure coverage for the countries where you operate.
• Hidden costs: Ask for all-in costs, including FX mark-ups, intermediary bank fees, and forced conversions. The British Business Bank’s guidance on currency risk is a helpful primer.

Conclusion

For UK SMEs navigating international payments, the era of “just use your high street bank” is increasingly sub-optimal. The multi-trillion-dollar cross-border payments market and growth in global trade mean that each percentage point in fees, each day of delay, each opaque cost, erodes margin and competitiveness. When you search for the best international payment solution for UK SMEs, one of the strongest entries is Wise Business, with transparent FX, multi-currency capability, and global reach. That said, if your needs include marketplace billing, mass payouts, or complex treasury, alternatives like Payoneer, Airwallex, or a capable traditional bank and treasury partner can be a better match.

The best way forward is to map your current international flows, estimate future growth, compute your total cost today, then choose the platform that reduces cost, improves speed, and adds strategic flexibility. If you would like, I can prepare a downloadable comparison matrix with current fees, FX spreads, settlement speeds, local account availability, and integration support for the top providers in the UK.

‍