New research from PayPal has revealed that British SMEs are losing sales by limiting themselves to the 20th century’s most common forms of payment like cash, bank transfers and cheques.
Apparently, 44% of SMEs say they have never reviewed their payment systems, “Despite the radical changes of the 21st century being embraced by consumers, including the arrival of digital wallets, contactless payments and the rise of the smartphone.”
In addition to that, customer shopping habits are having an impact on how businesses offer their services: 63% of consumers admitted to abandoning a purchase whilst shopping online in the last three months because they couldn’t pay the way they wanted. Meanwhile, 56% of consumers have abandoned a purchase in a physical store over the last three months for the same reason.
Businesses must update or lose out
Commenting on the findings, Nicola Longfield, Director of Small Business at PayPal UK said:
“For small businesses, understanding the number of new ways to take payment may seem daunting. At times it can feel like a new “pay” launches almost every week. However, consumers are embracing these changes and opting to use digital wallets, contactless cards and their smartphones when they go shopping. Businesses that don’t join the 21st century stand to lose out.”
Nicola adds, “The good news is that much of this technology is designed to make life easier for small businesses, as well as consumers. Integrating a simpler check-out process, where customers don’t have to enter their card and delivery details every time on a tiny screen can help convert more sales. Meanwhile, NFC-enabled card readers such as PayPal Here mean businesses of any size can accept Chip & PIN, contactless payments and even Apple Pay on the move. No long term contracts and low pay as you go processing fees make PayPal Here suitable for a wide range of businesses previously solely reliant on cash, cheques and bank transfers, such as plumbers, taxis or market traders.”