Future Payments Challenge: Can Startups Solve the UK SME Cash Flow Crisis?

Late payments cost UK SMEs an average of £22,000 per year and contribute to an estimated 50,000 business closures annually. It is a problem that strikes at the heart of the UK economy, and one that the Digital Trust Centre of Excellence is determined to help solve.

The Challenge

The CoE Trust has launched its Future Payments Innovation Challenge, calling on startups and early-stage SMEs to develop solutions that tackle the cash flow crisis facing small businesses across the country. The challenge focuses specifically on digital procure-to-pay processes and future payment technologies that could transform how businesses transact with one another.

Successful applicants will receive tailored support and up to £50,000 in incubation funding to build a unified digital procurement-to-pay service. The programme is designed to take promising solutions from concept stage (TRL 3-4) through to a working prototype (TRL 5) over a funded three-month development phase.

Why This Matters

The UK’s payment infrastructure is undergoing significant transformation. As part of the National Payments Vision, there is growing momentum behind modernising how money moves between businesses. For SMEs — which make up 99.9% of the UK business population — faster, more transparent payment systems could be transformative.

The CoE Trust is uniquely positioned to drive this innovation, sitting at the intersection of academic research and industry application. Through its founding partners FinTech Scotland, Scottish Enterprise, and deep connections across the finance sector, the Centre provides startups with access to expertise, networks, and real-world testing environments.

How to Get Involved

The challenge is open to startups and early-stage SMEs building solutions that streamline B2B procurement, automate payments, or accelerate settlement. Applicants should be committed to advancing their solution through the funded development phase.

This is an opportunity to be part of a growing ecosystem that is positioning Scotland as a global leader in digital trust and payment innovation. For more information and to apply, visit the CoE Trust website or contact the team directly.