Although small business owners have increased their technology spend in the past two years, 39% said they still spent at least five hours per week dealing with payment issues over that same period, according to a survey conducted by WePay1, an integrated payments business of JPMorgan Chase & Co. The survey, which polled 1,000 U.S. retail and restaurant owners with fewer than 100 employees, found that payment speed was the top concern for small businesses. About 39% said they faced speed-related payment issues in the last 12 months and 25% reported cash-flow issues over the last 12 months.
The COVID-19 global pandemic spotlights the important role digital payments solutions play in keeping small business sales flowing, Bill Clerico, CEO of WePay and head of Small Business Products at Chase Merchant Services, said in a company press release. The study proved that retailers and restaurateurs want a trusted partner in their payments technology and also revealed that nearly half of respondents (49%) said they trusted banks and credit card providers to handle their financial activity. About 24% trusted the combination of banks and software companies working together.
Other highlights included:
- 62% of small businesses surveyed would consider switching to a bank and software company solution, while 43% would switch solely to a software company.
- 28% of small businesses said they were “likely” or “very likely” to make a change to their online payment system in the next 12 months.
- 77% of companies with more than $1 million of annual revenue would consider working with a solution from a bank and an ISV.
- 29% of Gen Z respondents trust the bank/software combination to handle financial activity, compared with 21% for Gen X and 20% for Baby Boomers.
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