QuickBooks Payments aims to tackle GBP £2.5 billion late invoice gap

Intuit has launched QuickBooks Payments, a new invoicing feature aimed at helping UK small and medium-sized businesses (SMBs) reduce late payments and administrative burdens. The service is part of the company’s all-in-one financial platform and is now available to QuickBooks users in the UK.

Reports indicate that more than half of UK SMBs continue to struggle with late invoice payments, with 52% experiencing payment delays. Many businesses report being owed between GBP £5,000 and GBP £20,000 at any given time. According to the Office of the Small Business Commissioner, if all SMBs were paid on time, it could result in a GBP £2.5 billion increase in the UK’s annual economic output.

Late payments are forcing many SMBs to make challenging financial decisions. Common issues include dipping into personal reserves or relying on credit cards to maintain cash flow. On average, businesses say 13% of their invoices are overdue by more than 30 days. Additionally, 30% spend between 21 and 30 hours per month on chasing and reconciling unpaid transactions.

QuickBooks Payments allows businesses to add a “Pay Now” button directly to invoices, enabling clients to pay by bank transfer or card. The company processes about 2.9 million invoices each month through QuickBooks Online in the UK. Intuit says the system can help businesses get paid up to three times faster by reducing manual steps, minimising errors, and automating payment reminders.

The feature also provides real-time tracking of paid, unpaid, and outstanding balances, which aims to provide greater visibility and control over receivables. Businesses trialling the new process report faster payments and reduced administrative workload.

QuickBooks’ April 2025 Small Business Insights Survey found that 80% of SMBs accept traditional bank transfers, 53% accept card payments, and 47% accept payments from online platforms. Only 15% currently offer portable or mobile card reader payment options. The introduction of built-in payment functionality may shift these practices by making it easier for businesses to accept different forms of payment.

For each payment, Intuit charges a small processing fee: 1% per bank transaction capped at GBP £4, and 1.2% plus GBP £0.20 per card payment. Businesses can connect their bank accounts and manage customer payments through the QuickBooks interface to simplify reconciliation and bookkeeping.

“With over £21,000 owed on average in unpaid invoices, more than half of UK SMBs are facing cash flow problems, forcing many to make difficult financial decisions just to keep operations running. From dipping into personal cash reserves to relying heavily on credit cards, these pressures can quickly escalate, especially when payments are overdue by more than 30 days. The launch of QuickBooks Payments helps our customers to significantly improve their payment practices, and will play a key role in strengthening their stability,” said Nick Williams, International Product Director, Intuit.

Chris Noble, Owner of Pest Control Solutions, shared his experience of using the new feature: “I used to manually add bank details to every invoice, things like the business name, account number, and sort code. Our name alone, Pest Control Solutions Ltd, was a constant stumbling block. Customers had to set us up as a new payee each time, and many would complain their bank wouldn’t accept the name or they’d simply get stuck. It was frustrating and time-consuming for everyone.

Setting up QuickBooks Payments changed that instantly. It took no more than two minutes, and because I was already using QuickBooks, the process was seamless. The difference it’s made is huge. Payments are now simple and user-friendly, easier for customers and far more efficient for me. I’m now getting paid noticeably faster, on a more consistent basis.

It’s been especially helpful for customers who aren’t as tech-savvy. Instead of struggling to figure out bank transfers, they just click ‘Review and Pay’ on the invoice. That clarity has removed a lot of confusion. For me, it’s been a massive time saver. It automatically matches payments to invoices and marks them as paid, which has eliminated the manual work I used to do,” said Noble.