40% of U.S. small and mid-sized merchants are switching from banks to PayTechs for faster, cheaper onboarding and better service.

A Capgemini report reveals that 40% of small and mid-sized U.S. merchants are considering switching from traditional banks to PayTechs due to slow, costly onboarding and outdated systems. Despite banks’ strong brand trust, satisfaction is low—15% for small, 22% for mid-sized businesses—largely due to delays up to seven days and fees as high as $496. PayTechs outperform by enabling onboarding in under an hour for as little as $214, with better performance in payment success, fraud prevention, and innovation. Only 19% of banks are confident in high payment success rates, and just 13% believe they can deliver fast onboarding. PayTechs lead in payment orchestration, generative AI, and preparing for future trends like digital identity and central bank digital currencies. Merchants lose about 2% of revenue to fraud and face up to 9 hours of annual downtime. Global digital payments are growing rapidly, expected to exceed 3.5 trillion by 2029, with Asia-Pacific leading. Banks can regain market share by modernizing services, reducing friction, and offering tailored, embedded financial solutions.