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Small Business
Payments Spotlight
3rd edition

Emerging technology continues to reshape the payments industry

To keep up, small businesses are turning to eCommerce and advanced point-of-sale (POS) systems to attract consumers and streamline business management.

For our third installment of the Small Business Payments Spotlight, Bank of America Merchant Services commissioned Forrester to survey 522 U.S.-based small businesses and 509 U.S.-based consumers who shop at small businesses to help owners understand the trends driving their businesses.
 


Consumers hunt for convenience at check-out

The increased convenience and security of digital wallets and third-party payment services like PayPal, Amazon Payments and Google Wallet are starting to attract more consumers beyond the typical early adopters.
 

How consumers choose to pay at small businesses
 

DIGITAL WALLETS
2X
usage in-person
from 2017 to 2019
THIRD-PARTY PAYMENT SERVICES
2.5X
usage online
from 2017 to 2019

To find out what benefits small businesses are seeing by accepting digital wallets, read the full report.
 

What happens when consumers can’t pay their preferred way?

With the amount of competition small businesses face these days, it’s important to make the most of every customer interaction. Letting customers pay their preferred way can help to make a good impression; otherwise, small businesses may lose the sale or suffer decreased customer satisfaction.
 

Small businesses tackle online selling

To keep up with the number of consumers shopping online, many small businesses have created their own websites, but they have some significant hurdles to overcome to stay competitive, especially shipping costs.

70% of small businesses engage in eCommerce through a website, app or third-party marketplace

44% of consumers have made at least one purchase on a small business website in the past month

51% of small businesses have their own websites where consumers can order

42% of consumers think small business shipping costs are too high


How else can small businesses gain ground online?
By focusing on the use of mobile devices when shopping and online reviews. Check out the difference between consumer behavior and small business perception in the full report.
 

Data breaches threaten budgets and consumer trust

Consumers are more wary of returning to small businesses that have had a data breach, and costs of resolving them are rising.

29%
of customers will never go back to a small business that has had a data breach.

Up from 20% two years ago

41%
of small businesses that suffered a data breach paid more than $50,000 to recover.

Up from 31% two years ago



Some good news?

80% of small businesses accept EMV chip cards, which are more secure. That’s a jump from 55% two years ago.

Small businesses protect themselves from cybercriminals

With the increased threat to finances and reputation, small businesses are turning to some tried and true tactics to help keep safe. Here are the top ways small businesses have protected themselves in the past 24 months:

Update their POS systems

Implement industry security standards
(like PCI compliance)

Train employees on the proper use of POS technology

POS systems go beyond payments

The rise of smart POS systems and integrated management technology is changing the game for small businesses.

60% of small businesses have a POS that can do more than take payments


Top 3 desired functions of POS other than taking payments
 
Sales reporting
Inventory tracking
Invoice management

Are you ready to make a change?

Download the full report to get ideas, and contact us to see how we can help your small business grow and succeed in today’s changing landscape.
 

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