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March 31, 2020

Accepting various payment forms can solve small business payment woes

A study by Weave has revealed that small businesses providing multiple payment options can boost revenue by around 30% even though businesses are slow to adopt the same.

The study surveyed 380 small business customers and 350 small business owners.

Only 16% of these small businesses were found providing more than three payment options even though 40% of them believed that offering various payment options can lure young customers.

The small businesses accepting four or more payment options said that they fetched 7x more revenue on a yearly basis than those that did not have the provision.

Of the customers surveyed, 35% expressed interest to make payments with a text from their phone.

The customers aged below 35 years were found over two times keener to pay with a text compared to their older counterparts.

However, just 4% of the small businesses provided this option.

The study also found a waning significance in the use of cash, with 43% of the customers citing that they hold less cash currently compared to the previous year.

Thirty-eight percent of the small business customers also said that they could make a purchase at a physical store due to the non-acceptance of their payment form.

Besides, around half of the small businesses said that they were unaware of their credit card processing fee.

Weave chief product officer Jeff Lyman said: “Now more than ever, in the midst of this pandemic, we’re faced with the reality that payments are the lifeblood of a business. Yet even with this new host of simple and remote digital payment options, we’re still seeing a delay in their adoption from small business owners.

“Adopting these newer technologies like text-to-pay, Bitcoin, and digital wallet services like Venmo or Apple Pay speeds up the rate at which these businesses get cash in the door and saves them dollars due to typically lower processing fees associated with these more modern solutions.”

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