Starling Bank launches tap to pay on smartphones for SMEs

Sara White, Editor, Business & Accountancy Daily. Croner.

Challenger bank teams up with fintech Adyen to allow SME business customers to accept debit and credit card payments from customers using smartphones and Starling bank app.

Starling Bank’s SME customers can now accept contactless card payments on their smartphone via tap to pay, with plans to extend invoicing services when card payment links will be integrated into Starling’s free invoicing feature later this year.

The tap to pay technology effectively turns a smartphone into a secure, user-friendly payment terminal. It allows SMEs to accept contactless payments on eligible smartphone devices, without having to purchase or manage additional hardware as Adyen’s technology is integrated directly into the Starling app.

There is no monthly fee for the service as it comes as part of the business account, Starling said, with ‘a small rate flat fee on transactions’. Businesses receive the payment settlement for sales in their Starling account the next day. They can also track their tap to pay sales in the app anytime. 

With the tap to pay technology, customers of SME businesses will be able to hold their card or digital wallet near to the merchant’s phone to make payment, meaning a separate device is not required.

Payments are processed securely via NFC technology, with accessibility options and the ability for a customer to enter their PIN on the phone. The built-in device security ensures transaction information and card details are never stored on the phone or servers. 

‘By combining Adyen’s financial technology with Starling’s banking infrastructure, we are helping SMEs bridge the gap between their payment processing and daily financial management,’ said Nicole Olbe, UK managing director, Adyen.

With late payment of invoices and cashflow problems major gripes for SMEs and sole traders, the government is looking to tighten up the current rules with the Small Business Protections (Late Payments) Bill included in in last week’s King’s Speech and likely to come into force from 2027 onwards. This would force big businesses to pay smaller suppliers faster.

Sami Kade, director of customer solutions at Starling said: ‘Starling is committed to helping small businesses get paid more quickly and easily. Making the process of getting paid easier, allows business owners to redirect their energy towards the thing that matters most: growing and running their business.’