Small businesses offering multiple payment options see revenue go up by 30%: Study
Only 16% of small businesses offer more than three payment types - cash, cheque and credit card.
March 31, 2020 / 07:28 PM IST
Weave, the complete business toolbox for service-based businesses and one of the fastest-growing companies in tech, has announced new research illustrating how offering multiple payment options can help boost sales and increase conversion rates for small businesses.
Weave commissioned an independent study of both small business owners and customers on how best to remove friction during the payment process for both sides of a transaction -- for those making a payment and for those collecting the money.
Most small business owners don't realize that offering various payment options can be a powerful business tool in addition to adding flexibility in uncertain times. Weave Payments enables businesses to keep collecting payments even with the recent changes to everyday life as a result of COVID-19 and social distancing rules. Features like Text To Pay, manual card entry, and the Weave payments dashboard make it easy and convenient for business owners to charge customers, collect payments, and manage outstanding balances even while working remotely.
"As a business owner, the more convenient you make it for your customers to pay you, the more often you will get paid. While this seems evident, a lot of small business owners today still only accept cash, check and credit card payments," said Jeff Lyman, Chief Product Officer at Weave.
"Now more than ever, in the midst of this pandemic, we're faced with the reality that payments are the lifeblood of a business. Yet even with this new host of simple and remote digital payment options, we're still seeing a delay in their adoption from small business owners. Adopting these newer technologies like text-to-pay, Bitcoin, and digital wallet services like Venmo or Apple Pay speeds up the rate at which these businesses get cash in the door and saves them dollars due to typically lower processing fees associated with these more modern solutions," he added.
Some key data points from the study include:
- 35 percent of customers are interested in paying with a text from their phone but only 4 percent of small businesses offer this payment option.
- Only 16 percent of small businesses offer more than three forms of payment options.
- 43 percent of small business customers say they carry less cash today than they did one year ago.
- 40 percent of small businesses say that accepting more payment types will help them win over young customers.
- Small businesses that accept four or more payment options bring in 7x more annual revenue than those that accept fewer than four payment options.
- 38 percent of small business customers have been unable to make a purchase at a physical store because their form of payment wasn't accepted.
- Nearly half of small businesses don't know what their credit card processing fee is.
- Small business customers under 35 are over two times more interested than older buyers in paying with a text.
- 62 percent for buyers under age 35 would frequently or always pay with a text from their phone if they could.