Is your small business turning away business without even realizing it? If you don’t provide a multitude of payment options, the answer might be “yes,” according to the Small Business Payments Survey, a new study conducted for WePay.
The study investigated how business owners prefer to receive payment compared to how customers prefer to pay, and found a growing divide. While nearly three-fourths (72 percent) of small business owners would rather get payment by cash or check instead of by credit card, more than half (52 percent) of customers aged 18 to 34 say they never use checks as a form of payment.
- It’s not just Millennial customers who are turning away from checks, however. Overall, the study found about two-thirds (64 percent of consumers now write fewer than three checks per month. That figure has nearly doubled from 35 percent three years ago.
- About one-fourth (27 percent of small business owners admit they get fewer checks as payment today than they did three years ago.
- More than half (58 percent of small businesses say customers regularly ask them to accept credit cards.
Many small business owners dislike accepting credit card payments because of merchant fees, but those businesses are rapidly losing out. A growing number of consumers say they won’t shop at a business unless it accepts multiple forms of payment. Younger consumers were most likely to say this. The percentage of consumers who won’t shop at a business unless it accepts multiple payment methods is:
- 69 percent of consumers 18-34
- 58 percent of consumers 35-44
- 52 percent of consumers 45-54
- 48 percent of consumers 55+
Solutions for accepting payments are easier than ever to implement today. The key is to figure out what payment methods your customers want to use.
If you serve a lot of younger consumers, or want to attract this audience, you’ll need to step up. Tools such as the Square card reader can enable you to take payments on a mobile phone or tablet computer, either in your business location, or out on the field. You can also offer options such as payment via PayPal.
If you serve older consumers, you may be OK with accepting checks or cash (although keep in mind that almost half of those over 55 want more options). If you have an ecommerce site, these customers may be especially concerned about data security, so you could offer an option for them to print out and mail in an order form with their payment.
Accepting a wider range of payment options not only benefits your customers, but also your business by enabling you to serve a wider audience.
Web.com’s ecommerce options allow you to accept lots of different payment types. Learn more about Web.com’s ecommerce solutions.