UK Small Businesses Favour Banks Over Alternative Payment Providers
Only 40% of small business owners would opt to use online payment services; suggesting a 'distrust' of alternative providers
59% of UK small business owners favour traditional banks over alternative payment providers, according to a report by Visa Europe.
The survey of 750 UK small business owners found that just 11% would opt to use payment services from telecoms companies, while 6% would use social media providers (6%), and 40% would use online payment services, suggesting there is a sense of distrust for alternative payment providers.
Just 30% of respondents claimed to be “completely satisfied” with the range of payment options available, with this figure increasing to 40% amongst sole traders.
56% of sole traders use online banking with 32% using their debit card make online payments – suggesting they are the most comfortable with alternative payment methods.
Despite this, just 9% said they accept online card payments from customers, with 36% of all smaller firms using debit cards to make payments but only 22% accepting such payments in return.
Kevin Jenkins, managing director of Visa UK, said: “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.
“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.”