Credit cards are the top payment choice for small businesses, according to a recent survey by SYNERGISTICS Research entitled, The Small Business Payments Market. When small businesses are asked which of a variety of payment methods their company uses most often, close to half identify credit cards. One-fifth say their company uses checks most often, while one in six cite debit cards. About one in 20 or fewer mention various other payment methods. Mention of credit cards as the most frequently used payment method is widest among companies with sales of $1M to $5M.
William H. McCracken, CEO of SYNERGISTICS, stated, “The purchase methods available to both consumers and small businesses continue to expand, making it necessary to continually evaluate the payments marketplace. As these findings indicate, traditional payment methods are still very widely used among small businesses, with credit cards being in the lead position. Providers should plan to support these payment options for some time to come despite the onslaught of new payment alternatives. Usage of various innovative alternatives – PayPal, mobile options such as Apple Pay, and business prepaid cards – by small businesses seems to be lagging behind consumer adoption. However, providers should plan for these new alternatives to grow in usage among small businesses.”
These are among the findings from SYNERGISTICS study, The Small Business Payments Market, featuring online interviews with 616 owners and executives of small businesses with annual sales of $50K-$5M. Industry categories include manufacturing, wholesale, retail, and services. This study examines small business usage of various payment methods, as well as reaction to innovative and non-traditional alternatives.