Bredin Report: Top SMB Concerns with Payment Solutions

Last report, using the data from our most recent SMB Pulse survey of 500 U.S.-based principals, we kicked off a new series on what SMBs are looking for in the tools that allow them to collect payments from their customers. We’re continuing the conversation in this week’s Bredin Report with a discussion of the concerns SMBs have with payment solutions.

For very small businesses (VSBs, with fewer than 20 employees) and small businesses (SBs, with 20 to 99 employees), the biggest concern with a payment solution is its total costs and fees. Expenses ranked as the second-biggest concern for midsized businesses (MBs, with 100 to 500 employees).

What is of most concern to MBs, and second-most among VSBs and SBs, is security. Closely related to security, fraud is the third-highest concern among all size groups. If you provide payment solutions, it is critical to emphasize your security and fraud prevention features to SMBs.

Among VSBs, the time it takes to receive payment is tied for the third-biggest concern. VSBs are significantly more concerned about days sales outstanding than MBs. For their part, MBs are more concerned about how easy it is for their employees to learn to use a payment solution than VSBs and SBs are. This is because training often becomes a managerial challenge for MBs, which are less likely to be owner/operators and more likely to have multiple locations than VSBs and SBs.

Compared to their smaller counterparts, MBs are also more concerned about the ability of a payment system to grow with their business. Whether it’s adding new locations or new functionality, MBs are much more likely to have a growth mindset than VSBs or SBs.

SMB Concerns with Payment SolutionsUnderstanding the general concerns SMBs have, along with the unique priorities of each size group, allows payment solutions providers to best market themselves to SMBs. Keep following in the next few weeks as we focus in on payment solution adoption plans, what motivates SMBs to look for new payment solutions, and how they learn about and want to buy them.

Want to learn more about your SMB target?
Place a few questions in Bredin’s monthly SMB Pulse or let our experienced team design and execute a custom research project to uncover actionable insights to improve your go-to-market and product strategies.


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About Bredin

Bredin was founded in 1991 by America's foremost small business expert, author and syndicated columnist Alice Bredin. From its beginning, Bredin was designed to be a breed apart: 50% research consultancy, 50% creative agency, 100% focused on SMB. Based in Somerville, Mass., Bredin helps Fortune 500 companies understand, reach and retain SMB customers through timely, targeted research and award-winning marketing programs.