UK SMEs are missing out on an estimated £1.6 billion by not embracing PayTech solutions, according to Barclaycard research. The company carried out online interviews with 253 decision makers within B2C SME retailers, and surveyed 2,010 Brits. It found that 46% of Millennial shoppers are opting to pay using a next generation payment solution. At the same time, though, one in four SME retailers have experienced abandoned transactions when shoppers couldn’t tap into PayTech. Yet four in ten are eager to introduce new electronic ways to pay – with 7% of in-store retailers already completely cash-free
Many, however, are struggling to keep pace with increasingly tech savvy customers. A quarter of smaller in-store retailers, for instance, are yet to introduce contactless. Although 28% have plans to update their offering in the next six months, a fifth do not think they need to introduce invisible payments. This is despite the fact that 27% of 18-34 year olds predict it will become the most popular form of payment in the next five years and 54% believe cash will eventually become redundant.
“Our figures show that SMEs are losing sales by not adopting increasingly popular technologies that facilitate invisible and conversational payments,” says Greg Liset, Head of Small Business at Barclaycard. “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.”