Bredin Report: What SMBs Want in a Payment Solution

Over the past few weeks, we’ve shared insights on how SMBs are using – and benefiting – from AI. With this issue, we will kick off a new series, using data from our SMB Pulse survey of 500 U.S.-based principals, to explore what SMBs want in a payment solution. We will start with a focus on the types of payments SMBs accept today and expect to accept in the near future.

Today, very small businesses (VSBs, with fewer than 20 employees) are most likely to accept cash. Meanwhile, small businesses (SBs, with 20 to 99 employees) are most, and equally, likely to accept cash and credit cards – both in store and online. Midsized businesses (MBs, with 100 to 500 employees) are most likely to accept customer payments via credit cards online.

The Payments SMBs Currently Accept

While cash, credit cards, and checks are currently king, that will soon change. As EFT, mobile wallet and digital P2P payments such as Zelle and PayPal become more popular, SMBs intend to adapt their payment methods accordingly. And they’re moving quickly. Digital payment methods are not only set to catch up but likely to surpass cash, credit cards and checks as the most common forms of payment. Currently, less than half of VSBs accept mobile wallet transactions, but 16% plan to adopt that form of payment this year alone. 15% of SBs and fully 30% of MBs will incorporate digital P2P payment methods by the end of the year.

The Payments SMBs Plan to Accept

Customer payment preferences and payment solutions are changing – and SMBs are adapting. In the weeks to come, we’ll cover payment solution adoption plans, what motivates SMBs to look for new payment solutions, what they want in a payment solution, 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.