Adyen and Starling Offer Tap to Pay for UK SMEs

WHY THIS MATTERS: The partnership between Adyen and Starling marks an aggressive push into embedded finance within the business banking sector. This integration moves Starling far beyond merely offering an account; it transforms their application into a holistic commerce operating system for small and medium-sized enterprises (SMEs). For too long, small businesses have dealt with a disjointed process, managing their funds in one app and payment acceptance via separate hardware and processors. This move streamlines cash flow by unifying the payment process—from accepting contactless ‘tap to pay’ transactions to next-day settlement—all within the bank’s native environment. This capability is not just about convenience; it represents a crucial evolution of payments infrastructure, eliminating friction and reducing operational complexity for businesses that need speed and simplicity to thrive. This sets a new, high bar for digital-first business banks globally.

Adyen, the global financial technology platform of choice for leading businesses, has been chosen by Starling to power a new suite of products and features that help SMEs accept card payments within the Starling app. Later this year, Starling will introduce payment links for its free in-app invoicing tool, allowing SMEs to collect payments from their customers via card, or mobile wallet, within just a few clicks.

The collaboration begins with the launch of tap to pay, allowing SMEs to accept contactless payments on eligible smartphone devices, without the need to purchase or manage additional hardware. By integrating Adyen’s technology directly into the Starling app, SME customers will never have to leave the bank’s app to interact directly with the payment processor. Once set up, Starling’s SME customers will be able to turn on the feature and begin accepting payments within minutes, with funds landing in their account the next day to support vital cash flow. The entire lifecycle, from onboarding to settlement and refunds, is managed seamlessly within the existing Starling ecosystem. 

With tap to pay technology, customers of SME businesses will simply need to hold their card or digital wallet near to the merchant’s phone. 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. 

“Tap to pay technology removes traditional barriers to accepting card payments by turning a smartphone into a secure, user-friendly payment terminal. By combining Adyen’s financial technology and banking capabilities with Starling’s UK banking infrastructure, we are helping UK SMEs bridge the gap between their payment processing and daily financial management,” said Nicole Olbe, UK Managing Director, Adyen. “This gives businesses the flexibility to accept payments wherever they operate, backed by the confidence of two trusted financial partners.”

“Starling is committed to helping small businesses get paid more quickly and easily,” said Sami Kade, Director of Customer Solutions at Starling. “The introduction of tap to pay, followed by payment links later this year, empowers our customers with another tool to help them be good with money. 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.”

FF NEWS TAKE: This is a defining move in the UK’s competitive SME banking landscape. By integrating payment acceptance directly into the app, Starling is validating the power of embedded finance to deepen customer lock-in and increase transactional revenue. This partnership is highly strategic for both parties and fundamentally raises the table stakes for what a modern business account must offer. We should watch for how rival digital banks respond, particularly through API partnerships to match this zero-friction approach. The next logical step is leveraging this rich, integrated payment data for instantaneous credit or working capital offers.