SMBs Loyal to Payment Technology Suppliers
SMBs are loyal to the technology suppliers they leverage according to a recent study from PYMNTS.com.
The SMB Technology Adoption Index for Q4 2015, powered by Sage, shows that 48 percent of small- and medium-sized businesses (SMBs) are loyal to just one technology supplier to handle accepting payments, processing payroll, issuing invoices and accounting. Conversely, 34 percent of SMB respondents use two or more suppliers for their financial technology solutions.
"Small and medium businesses want a flexible, integrated, end-to-end system for managing the movement of money – that is, seamlessly getting paid, making payments, and managing cash flow – and vendors who can provide these types of solutions have a distinct opportunity," said Paul Bridgewater, CEO of Sage Payment Solutions, the payments division for Sage North America. "Price isn't necessarily the primary consideration for SMBs; rather, they want suppliers who can deliver a comprehensive solution to help them smartly manage their companies."
Additional findings from the Q4 study reveal that 64 percent of SMBs are not currently prepared to accept EMV cards have no plans to do so. In fact, 60 percent of respondents note that their highest area of technology adoption is for managing the payroll process. That said, electronic invoicing is gaining adoption, as the study found that 31 percent of SMBs use electronic invoicing, and of those SMBs, 20 percent can also accept payments electronically. Lastly, the study shows that 46 percent of SMBs cite not getting paid on time as the most frustrating thing related to receiving payments from customers.
"Small merchants are more focused on their primary business than payment technology, despite a plethora of options available to streamline the payment process," said Karen Webster, CEO of PYMNTS.com. "While somewhat understandable, this approach could be dangerous and lead to slower growth since businesses can gain major benefits from more effectively handling the movement of money."