Last report, we looked at the concerns small and midsized businesses (SMBs) have with payment solutions. This week, our series on what SMBs want in the tools that allow them to collect payments from their customers continues with a look at the high growth potential that payment solutions have in the SMB segment this year, based on data from our most recent SMB Pulse survey of 500 U.S.-based principals.
Two in five very small businesses (VSBs, with fewer than 20 employees) plan to increase the amount they spend on payment solutions between this year and last, either by purchasing new solutions or expanding on the solutions they’re currently using. Among larger SMBs, the spending outlook on payment solutions is even more positive, with exactly half of small businesses (SBs, with 20 to 99 employees) and more than two in three midsized businesses (MBs, with 100 to 500 employees) planning to increase spending on payment solutions this year.
The SMBs that will increase spending on payment solutions are most likely to invest in an online invoicing solution such as Autobooks, FreshBooks, QuickBooks or Zoho. More than half of VSBs and SBs, and more than two in three MBs, plan to acquire some type of invoicing software. To boost online sales, roughly half will invest in an ecommerce system like Shopify or Woo Commerce. And a similar percentage will invest in fixed or mobile POS systems like Block, Clover or Toast, to boost onsite sales. If you provide solutions in any of these categories, the opportunity in the SMB segment is tremendous this year.
Over the next few weeks, we’ll continue our series with a look into what motivates SMBs to search for a new payment solution, what the leading purchase considerations are, how SMBs learn about and research payment solutions, who they want to buy from, and the offer that works best to close a sale.
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