Post-Brexit: One in three UK businesses lost £66k in cross-border payments so far
More than one in three UK businesses have lost revenue from cross-border card payments post-Brexit.
New data shared with City PM reveals that the average revenue lost from cross-border card payments post-Brexit is £66,812.
Just under one in five businesses lost between £10,000 and £50,000, while one in ten lost up to £1m, according to research by payment service provider Ecommpay.
The losses follow in the wake of changing regulations post-Brexit, with certain payment processes becoming more expensive.
The UK is no longer covered by EU regulation limiting interchange fees, which has led to some card acquirers increasing fees that EU merchants must pay when receiving orders from the UK.
Britain-based payment providers have also lost their automatic EU passporting rights, meaning they cannot provide services in EU member states without confirming they are compliant under new regulations
London
More London businesses have lost money from cross-border payments post-Brexit than those in regional areas, with 51 per cent of business in the capital affected, compared to only a quarter of those in the East of England, a fifth in the North East, and just 13 per cent of Welsh companies.
Larger businesses have been more significantly impacted, with only 14 per cent of companies with less than nine workers affected, next to almost half of those with more than 250 employees.
With Brexit complicating certain payment services, almost a third of businesses say that complex regulation is the biggest barrier to free trade with the EU at present.
The next biggest issues that UK businesses cite regarding free trade are border control issues (24 per cent), lack of clarity around law changes (22 per cent) and lack of local European knowledge (16 per cent).
Brexit is also dissuading UK businesses from scaling: 17 per cent of businesses currently see Brexit issues as the biggest barrier for overseas expansion.