2025 is the perfect year to change payment provider, evaluate e-commerce transaction fees, and offset increasing business costs.

For many small businesses across the UK, 2025 will be a make-or-break year.

The UK’s business landscape is grappling with an ongoing financial storm driven by market challenges and government legislation. The combination of increased supplier costs, rising inflation, higher energy prices, and increased taxation creates a perfect storm that puts relentless pressure on profit margins.

For businesses already feeling the squeeze at every point, finding ways to cut expenses and better balance the books has never been more critical.

One area you may not have considered but could yield significant savings? Your payment provider.

When every sale counts, the current economic environment highlights the need to scrutinise every outgoing cost. Transaction fees, which seem minor, can significantly add up over time, particularly if your sales volume is high.

That's why, if you’re an e-commerce merchant, switching to a provider with lower transaction fees might be your smartest move this year.

Payment processing: the hidden drain on your revenue

Every time a customer makes a purchase on your website, your payment provider takes a cut - generally a percentage of the sale plus a fixed fee. This arrangement enables payment technology companies like Taylr.io to provide the best checkout experience, anti-fraud measures, and access to industry-leading technologies.

Whilst these fees are unavoidable, they are not all created equal. From our experience in the payment industry, they can be heavily skewed in favour of the big names, leaving smaller businesses with high fees, no room for negotiation, and a poor overall customer experience.

Some providers charge significantly higher rates than others, and many businesses continue using outdated or expensive systems simply because switching seems complicated.

It's time to change that.

In 2025, with profit margins squeezed tighter than ever, accepting the status quo could cost you.

Switching to a payment provider with lower fees could allow you to retain more of your hard-earned revenue and offset some of the increased costs from other areas of your business, making small but impactful changes to your bottom line.

The savings potential of lower online transaction fees (or how Taylr.io could increase your marketing budget by £1200).

Let’s break it down about what happens when you change payment provider:

• If your store processes £10,000 in monthly online sales, a 1% fee reduction could save you £100 monthly. Over a year, that’s £1,200 back in your pocket.

• If that £10,000 revenue comes from 1000 transactions, and you save £1p per transaction, that's an additional £10 per month saved, so £120 per year.

• For smaller businesses, this small but mighty saving could cover other essential costs like software subscriptions, stock, or even marketing campaigns.

You don't have to put this towards your marketing budget, but by making changes to the checkout experience on your site, you could offset rising costs elsewhere.

Which payment provider has the lowest transaction fees and rates?

We won't discuss the specific costs of other payment technology providers, but we can confidently say that our rates are very competitive compared to those of the big names in payment processing.

As of January 2025, our rates are:

• A flat fee of £20.00 per month

• 1.15% + £0.18p fee per transaction

Put into the context of our previous example: £10,000 from 1,000 monthly transactions will cost you just £315 in processing fees. This saves £35 compared to the £350 it would cost if this were to go through Stripe at 1.5% and 20p per transaction (rates as of January 2025 on their website).

In addition to our competitive rates, industry-leading anti-fraud technology, and simple onboarding processes, we focus on delivering the best customer service possible, making switching more straightforward than ever.

Why 2025 is the right time to act and change payment provider.

In 2025, forward-thinking small businesses must be proactive to stay ahead. By changing to a more cost-effective payment provider, you can recoup some losses caused by rising costs and National Insurance hikes.

A small change in payment processing fees could mean significant savings for your bottom line, making this the perfect time to act.

How to get started if you want to switch payment provider

1. Review your current fees. Look at your monthly statements to understand what you’re currently paying.

2. Research how to switch. Look at our switching guide here.

3. Switch smartly. Work with Taylr.io for a seamless transition with minimal downtime.

Don’t let high fees drain your profits. Switching payment providers is a quick, impactful way to reduce your overheads without compromising the quality of service you offer customers.

Take control of your payments and set your business up for success in 2025 - talk to Taylr.io now.