Many UK small businesses trust their banking providers, but there remain barriers to adoption of different types of payment services. That’s according to new research from Visa Europe, involving 750 businesses. 59% backed their bank or building society to be their payment provider. While alternative providers are emerging, trust in these institutions to deliver payment functions is low, such as a telecoms company (11%), social media provider (6%) or alternative online payment providers (40%).
Yet many aren’t fully satisfied with the payment options available to them. For example, only 30% of owners are ‘completely satisfied’ with the range of options available. This rises to 40% of sole traders. Satisfaction levels also decrease as company turnover rises.
Kevin Jenkins, Managing Director of Visa UK, says: “The banking and payments proposition for small business is different and has to be treated so. Resources are scarcer and the time to invest in and consider these kinds of issues is typically less. The impact is the same regardless of business size though. If small businesses feel frustrated or unable to utilise the best payment or banking offering for them and their customers, then they can’t enjoy the benefits these bring. Given the top three barriers to change are cited as perceived cost, risk, and other priorities being focused on, that suggests we need to start with making these products as accessible and useful for this audience as possible.”
There are also differences between the comfort level of businesses paying in new and different ways, versus accepting these payment methods themselves. Sole traders, for example, have embraced making online payments – 56% use online banking to make payments and a third make payments via debit card online. Yet only 9% of this group accept online card payments to their own business from customers. Similarly, 36% of all small businesses use debit cards for their business, yet only 22% accept payments this way.
Despite this, banks were listed more often than alternatives, such as internet providers, as the “preferred partner” for transaction services. 46% of small business owners described their bank as the “ideal” provider for these services.
