The technology gap between what Fortune 500 payment companies offer and what a 20-person EMI can realistically build just got a lot smaller.
If you’ve been running a small payment company for the past few years, you’ve probably had this conversation more times than you care to count: a potential client asks about cross-border capabilities, you explain your current limitations, and they politely move on to a bigger competitor who can offer real-time international transfers with transparent FX rates.
It’s frustrating because the demand is clearly there, but building comprehensive cross-border payment infrastructure from scratch when you’ve got 15 people on your team feels like trying to compete with Boeing when all you’ve got is a workshop and some really good intentions.
That dynamic might be shifting in a meaningful way. PayPoint just launched a new suite of APIs that’s specifically designed for SMEs to integrate cross-border transfers into their existing customer flows, according to Payment Expert. What makes this different from the usual “enterprise solutions for everyone” approach is the focus on low-code integration, targeting exactly the kind of non-bank financial firms that typically get left behind when new payment technology rolls out.
The Current Reality for Small Payment Companies
Let’s start with where things actually stand right now, because the numbers paint a pretty clear picture of the challenge small companies face.
As of late 2024, just 23% of UK-based SMEs were using modern embedded API cross-border solutions, compared to 68% of mid-market firms. That’s not because smaller companies don’t understand the value proposition. It’s because the barriers to entry have been prohibitively high for most teams operating with limited technical resources.
If you’re still relying on outdated SWIFT corridors, you’re probably looking at average settlement times of 2-5 days and up to 4.5% extra cost per payment for firms with under 50 staff. Those delays and costs aren’t just inconvenient, they’re competitively limiting when you’re trying to win business from clients who need reliable international payment capabilities.
Meanwhile, modern API toolkits that launched in 2025 can handle 140+ currencies with real-time FX rate visibility and settlement capabilities. What used to take days now happens in minutes for companies that have access to the right infrastructure.
The gap isn’t just technical, it’s strategic. Only 18% of micro and small UK regulated fintechs with fewer than 50 staff could offer cross-border APIs to clients as of Q2 2024. But here’s the interesting part: those who did have embedded solutions saw twice the international revenue growth compared to peers who remained on legacy payment rails.
Why This Moment Matters More Than Previous API Launches
We’ve seen payment API launches before, so what makes this one worth paying attention to? The answer lies in both market timing and specific design choices.
The global cross-border payment market is projected to reach $250 trillion by 2027, up from $150 trillion in 2017. SME-driven B2B transactions are a major growth driver in that expansion, but the fastest-growing segment specifically is micro and small businesses with 1-49 staff, where API-enabled platforms are seeing 33% year-on-year transaction volume growth.
That growth is happening because the technology is finally catching up to what small companies actually need. Modern API suites now offer support for 135+ currencies, modular “drop-in” code that integrates with existing accounting and ERP stacks, end-to-end tracking with automated reconciliation, 24/7 liquidity access, plug-and-play AML/KYC compliance, and FX margin savings up to 12.5% for SMEs.
But technology capability is only part of the story. PayPoint’s focus on low-code integration acknowledges something that previous providers often missed: most small financial services companies don’t have dedicated development teams waiting around for the next complex integration project. You need solutions that work without requiring a fundamental technical overhaul of your existing systems.
The embedded finance space is projected to double among UK fintechs serving micro and small businesses by the end of 2025, driven by demand from SMEs who want banking, FX, and international payments available in-platform rather than through separate service relationships.
What the Numbers Actually Show About Early Adoption
Early adopters of embedded cross-border APIs in 2025 are typically achieving cost savings of 10-22% on annual FX and international transaction fees compared to their previous processes. But the benefits extend well beyond simple cost reduction.
The operational improvements include faster customer onboarding, improved compliance automation, and access to co-marketing initiatives with API providers. Real-time settlement is becoming the sector norm rather than a premium feature, which changes customer expectations across the board.
When SMEs evaluate cross-border payment API toolkits in 2025, the most cited critical features are: instant FX rates, transparent fee structures, robust sandbox environments for developer testing, 24/7 customer support, automated reconciliation capabilities, and embedded compliance tools. The sandbox and developer tooling have become priorities for providers trying to gain SME market share, which reflects how important ease of implementation has become.
Here’s something worth noting: competitive fee advantages tend to erode over time as more firms onboard with any given provider, so early adopters typically capture the most value from both pricing and partnership opportunities.
The Implementation Reality Check
Before you start planning your cross-border expansion strategy around new API capabilities, there are some practical considerations worth understanding.
Nearly 29% of UK-based SPIs and EMIs in Q2 2025 reported “hidden requirements” around KYC/AML policies, regulatory restrictions, or payout limitations that slowed project timelines, even when working with tools that promised instant setup. The technology integration might be straightforward, but compliance requirements, corridor coverage validation, and customer onboarding flow optimization still require proper planning.
Most cited statistics about API adoption focus on larger SMEs and regulated fintechs. If you’re operating at the micro end with fewer than 10 staff members, you may face disproportionately higher operational overheads relative to the immediate benefits.
Vendor claims about “sandbox environments” and “instant integration” should be stress-tested with real-world use cases before committing to full implementation. Many firms report that back-end compliance requirements and corridor restrictions only become visible mid-integration, which can impact project timelines and costs.
Strategic Considerations for SPIs and EMIs
If you’re running an SPI or EMI, this type of API suite could represent a quicker path to cross-border capability than building infrastructure from scratch. But the strategic value depends on how well it aligns with your existing customer base and business model.
Start by reviewing the documentation thoroughly and testing the sandbox environment. Early adoption often comes with competitive fee structures and co-marketing opportunities, but only if you can actually deliver value to your customers once the integration is complete.
Consider how cross-border payments could bundle into your existing SaaS or embedded finance offerings. Many successful implementations involve positioning international payment capabilities as part of a broader platform solution rather than as a standalone service.
The compliance automation features are particularly valuable for smaller teams who don’t have dedicated regulatory specialists. Automated reconciliation, embedded AML/KYC processes, and real-time tracking can reduce operational overhead significantly compared to manual processes.
Market Positioning and Competitive Dynamics
The broader trend here is that technology barriers in financial services are coming down faster than many people expected. What used to require significant capital investment and technical expertise is becoming accessible to much smaller companies.
This creates both opportunities and competitive pressures. On one hand, you can now offer capabilities that were previously limited to much larger competitors. On the other hand, your similarly-sized competitors have access to the same tools, which means competitive differentiation will need to come from execution, customer service, and market positioning rather than just feature availability.
The companies that will benefit most from this shift are those who can move quickly on implementation while maintaining focus on their core customer relationships. Having enterprise-level payment capabilities is valuable, but only if you can deliver them in a way that actually solves problems for your specific customer base.
Looking Forward: What This Means for the Industry
This API launch is part of a broader pattern of democratization in financial services technology. The same capabilities that required massive infrastructure investments five years ago are becoming available as plug-and-play solutions for companies with limited technical resources.
That shift has implications beyond just individual company strategies. As more small payment companies gain access to sophisticated cross-border capabilities, customer expectations will adjust accordingly. What seems like a competitive advantage today may become a basic requirement for participation in the market within the next 12-18 months.
The winners in this environment will be companies that can adopt new capabilities quickly while maintaining the customer service and flexibility advantages that typically make smaller companies attractive to clients in the first place.
The Bottom Line
PayPoint’s API suite represents something bigger than just another payment solution launch. It’s evidence that the technology barriers which have historically separated small payment companies from enterprise-level capabilities are continuing to erode.
The opportunities are real: cost savings of 10-22%, access to 135+ currencies, real-time settlement, and automated compliance tools. But success still depends on proper due diligence, realistic implementation planning, and clear strategic thinking about how cross-border capabilities fit into your broader business model.
The playing field is leveling, but that doesn’t make the game any less competitive. It just means you now have access to better tools for playing it.
