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.
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
To find out what benefits small businesses are seeing by accepting digital wallets, read the full report.
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.
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.
Consumers are more wary of returning to small businesses that have had a data breach, and costs of resolving them are rising.
Up from 20% two years ago
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.
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