One-third of UK cross-border businesses are concerned about the possibility of further interest rate increases, according to research from global fintech company Rapyd.

In the run-up to significant interest rate decisions in both the UK and US this week, Rapyd revealed the findings of a new study of cross-border businesses across seven global markets. The study found that 33% of UK businesses and 43% of US businesses are concerned about the likelihood of increased interest rates, with 47% of UK businesses and half of US businesses concerned about the impact of inflation.

Notably, the study found that overall concern about the current state of business was higher in the UK (49% of respondents) than in G7 compatriots the US (34%), Germany (26%) and Canada (17%), with UK businesses also polling higher than the study average for market volatility concerns (41%) and import/export challenges (35%), reflecting the country’s recent domestic economic turmoil, combined with ongoing trading difficulties caused by Brexit.

Respondents also singled out improved cross-border payment terms as the factor most likely to ease their current business concerns. 41% of UK businesses called for improved payment terms to bolster the current state of business, compared to a study average of 33%, followed by faster settlements/payments (31%) and better access to working capital (29%).

Garðar Stefánsson, CEO of Rapyd Europe said:

“Businesses are doing everything in their power to reach new markets and open up new revenue streams, but they’re constantly set back by the complexity and cost of trading in other countries – losing huge sums and vast amounts of time on cross-border transactions. The bigger their operations get, the more these costs rise. It’s an unacceptable situation at a time when so many advanced economies are struggling to grow.

“Fintechs have a tremendous opportunity to help cross-border businesses with their expansion ambitions by providing faster and more cost-effective payment solutions, as well as creating innovative new approaches that simplify the way these systems operate. Ultimately, no business should have to take on the complexity of B2B payments by themselves when they’re going for growth – that’s why trusted fintech partners are critical. It’s time for fintech to step up to the plate and build bolder, better payments solutions that make cross-border trading seamless and straightforward.”

Rapyd’s State of Cross-Border Payments 2023 report is available here.