Credit cards and mobile payments critical for small businesses
Small businesses losing 1 in 4 customers
European research across five countries suggests small businesses are pushing almost 1 in 4 card holders out of the door by not accepting card payments, and one half of these European card holders would chose to buy from a business that accepts card payment over one that does not.
Card payment adoption could have a significant impact on footfall and volume for small-to-medium size businesses, according to new Visa Europe research carried out online in five European markets.
When questioned about their shopping preferences, more than half of all UK consumers aged 16-75 (52%) agreed that they would choose to buy from a business that accepts card payments over one that does not.
Among UK cardholders, 13% reported that, in the twelve months up to August 2014, they had been faced with no option to pay by card so chose not to make an intended purchase, while 12% chose to complete their purchase from somewhere else that did accept card payment.
This issue appears potentially more pronounced for UK SMEs than their Spanish or German counterparts and particularly acute when catering for younger customers. According to the research, 34% of UK card holders aged 16-34 confirmed that not being able to pay by card had led them to not buy the product or service (compared to 23% in Germany and 21% in Spain), with 20% having bought from a competitor instead.
Caroline Drolet, Head of Merchant Solutions at Visa Europe commented:
“There is a significant opportunity for small businesses to make a substantial increase in their business volume by integrating card payments into their operations. The alternative appears to be an increasing risk of a loss of business as more customers want to pay by card for transactions large and small..
The majority (64%) of UK card holders would prefer to pay by card for products and services costing between £21 and £100, increasing to 77% for transactions of £100 or greater. This suggests that these consumers appear to want the security and convenience of card payments for higher value purchases in particular.
For a refreshing approach to start accepting card payments or to review your existing provider speak to Business Sense NOW… on 0845 8942160