The significance of covering all methods of payment
Not taking a multi-pronged approach to payments could means SMEs in the UK are missing out on £12 billion worth of revenue.
This is simply because they are not offering an alternative to paying in cash, according to a report of 2,000 small businesses and consumers by Sage Pay.
Almost a third of customers said they were more likely to shop in places where companies had a variety of payment options.
Meanwhile, more than half of those quizzed said having more than one option increased customer loyalty.
However, 80% of small firms said they would only adopt new payment options were they to be requested by customers.
On top of losing out on potential revenue sales, Sage Pay also suggested that the cost of handling cash payments for SMEs could top £17.8bn
The need for innovation
“UK SMEs are a driving force in the UK economy but if they fail to innovate, they are in danger of being left behind,” said Simon Black, chief executive of Sage Pay.
Moving towards alternative payment methods might be one such way of doing this, but SMEs will need to take note of the money they are potentially missing out on.
When firms do not have a great deal of extra finance, managing it is essential to ensure the safe continuation of trading.
This reduces the need for company administration or other insolvency services which are often considered when the cash flow of a business appears to be in trouble.
In positive news for UK SMEs, more than a third of those surveyed admitted that they planning to adopt contactless payment facilities in the next five years.
However, integration between online and offline processes remains an issue, something of considerable importance when considering the many different channels that people wish to purchase goods over.
By Phil Smith