The verdict in three sentences
Adding a payment link to every B2B invoice costs, as a 2026 order of magnitude, GBP 3,500 to 10,500 of integration and takes 4 to 8 weeks to set up. The right setting is to push open banking pay by bank and Direct Debit for larger invoices and keep cards for small amounts, because a 0.8 to 1.8% fee on a GBP 5,000 invoice quickly costs more than the cash flow gain. Expected result: DSO down by 10 to 15 days and half the time spent chasing.
Why a payment link lowers DSO
The finance director of a London services SME (facilities maintenance, 1,800 invoices a month, average invoice GBP 400 excluding VAT) reports a 58-day DSO, well beyond the 30-day terms on most of its contracts. Much of the delay does not come from customers in difficulty but from friction: an invoice lost in a shared inbox, bank details to copy, internal approval that drags, a bookkeeper on leave.
A payment link removes that friction. The customer clicks in the email or scans the QR code on the PDF, picks a payment method and pays in under a minute. The payment is reconciled automatically in Xero, Sage or your ERP, and reminders stop on their own. The Late Payment of Commercial Debts Act already lets you charge statutory interest of 8% above the Bank of England base rate, and the government's 2025 consultation on tougher late payment rules makes 2026 a good time to tighten your collection process.
| Payment method | 2026 unit cost (order of magnitude) | Time to cash | Recommended use |
|---|---|---|---|
| Card (including commercial cards) | 0.8 to 1.8% of the amount | 1 to 3 days | invoices under GBP 500 |
| Open banking pay by bank (Faster Payments) | GBP 0.20 to 1 | seconds | invoices from GBP 500 to 50,000 |
| Bacs Direct Debit, one-off or recurring | GBP 0.20 to 1.50 | 3 working days | contracts and subscriptions |
| Bank transfer with pre-filled reference | GBP 0 for the seller | same day to 1 day | customers who refuse other options |
| Cheque (still around) | GBP 1 to 3 to process | 5 to 10 days | to phase out |
Note: since 2018, card surcharges on consumer cards are banned in the UK, and many B2B buyers resist them anyway. That is why pay by bank should be the first option on the payment page.
What the integration costs
| Item | 2026 range | Comment |
|---|---|---|
| Provider selection and contract | GBP 0 to 400 | Stripe, GoCardless, Mollie, TrueLayer, bank providers |
| Link and QR code on every invoice | GBP 900 to 2,600 | added to the PDF template and the email |
| Branded payment page | GBP 400 to 1,700 | method choice, invoice reference |
| Automatic reconciliation with accounting software | GBP 1,300 to 3,900 | Xero, Sage, QuickBooks, in-house ERP |
| Automated reminders with link | GBP 450 to 1,300 | D-3, D+1, D+15 |
| Testing and finance team training | GBP 450 to 600 | 2 to 3 days |
| Total | GBP 3,500 to 10,500 | 4 to 8 weeks |
If your accounting software already offers a native payment add-on, the cost can fall below GBP 3,500, but you often lose control over the methods offered and negotiated fees. At 1,800 invoices a month, a clean integration with a provider you choose usually pays off from year two.
Mini case study
Emma, finance director of the SME, bills GBP 720,000 a month, or GBP 8.64 million a year. Cutting DSO by 12 days frees 8,640,000 / 365 × 12 = GBP 284,000 of cash. At the cost of a 6% overdraft facility, the saving is about GBP 17,000 a year.
Chasing also weighs: 30% of the 1,800 invoices need 15 minutes of follow-up, or 135 hours a month. Halving that at GBP 30 an hour loaded cost saves GBP 2,025 a month, or GBP 24,300 a year. On fees, with 10% of payments by card at 1.2%, 40% by pay by bank at GBP 0.50 and 30% by Direct Debit at GBP 0.40, the monthly bill stays at 864 + 360 + 216 = GBP 1,440, or GBP 17,280 a year. The net gain exceeds GBP 24,000 a year for a GBP 7,000 integration.
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FAQ
Will large corporate customers pay by link?
Not always, because their accounts payable teams run payment batches. Offer them a bank transfer with a pre-filled reference and keep the link for SME customers, who often represent 70 to 80% of invoices.
Is pay by bank reliable for large amounts?
Yes, open banking payments travel over Faster Payments, whose scheme limit is GBP 1 million, although each bank sets its own lower limits for business accounts, often GBP 25,000 to 250,000.
Can we offer Direct Debit for maintenance contracts?
Yes, a mandate signed online once lets you collect each instalment for GBP 0.20 to 1.50. It is the most effective option for recurring invoices, with failure rates often below 1%.
How quickly does DSO improve?
The first effects show in month two. The 10 to 15 day reduction usually stabilises after 4 to 6 months, once customers are used to the link.
Does this work with Making Tax Digital and e-invoicing?
Yes, the link can be added to a PDF invoice or to an electronic invoice from your accounting software. If you plan to adopt e-invoicing as the UK framework develops, align both projects on the same timeline.
See also our article on an industrial PPE B2B webshop in Amsterdam and our automation and AI services.
Let's scope your project. We select the provider, set up the payment link and automate reconciliation with you in 4 to 8 weeks. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
