Research Shows SMEs Need to Embrace New Payment Methods

Research by Barclaycard has revealed that SMEs reluctant to adopt new payment methods are losing out on business, online and in store.

Customers

The research shows that nearly half of all millennial shoppers (18-34 year olds) prefer to pay with invisible payment methods (where card and shipping details are saved in advance of the transaction) and conversational payment methods, such as Amazon’s Alexa.

15 per cent of shoppers, rising to almost three in ten (29 per cent) 18-34 year olds have chosen to abandon a purchase because preferred payment methods were not available.

Businesses

  • 24 per cent of SME retailers are yet to introduce any form of contactless payment.
  • 28 per cent of those spoken to had plans to introduce new methods of payment.
  • 20 per cent didn’t think they would ever need to introduce invisible payments.

With more than four in ten (42 per cent) consumers and over half (53 per cent) of 18-34 year olds choosing ‘touch and go’ as their preferred way to pay, and the usage of contactless having risen by 104 per cent in the last 12 months, contactless is no longer an option but a necessity for retailers, with next-generation payment methods not far behind.

Greg Liset, head of small business at Barclaycard said “Our figures show that SMEs are losing sales by not adopting increasingly popular technologies that facilitate invisible and conversational payments. While it’s encouraging that many smaller retailers are becoming aware of the importance of these emerging methods, they need to turn this ambition into action to steal a march on the competition and keep up with consumers both now and in the future.

‘Making these changes needn’t be complicated or time-consuming – with support from their payment provider, SMEs can ensure they have the right solutions for their business while satisfying the ever-growing group of tech-savvy, digitally-minded shoppers.’

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