Small businesses “don’t trust” alternative payment providers
59% of small business owners favour banks for payment services compared to online services (40%) and telecoms companies (11%)
Many small businesses are still sceptical of using alternative payment services but retain confidence in banks, according to new research from Visa Europe.
The survey of 750 UK small business owners found that 59% trust their bank or building society as their payment provider, with alternative providers such as telecoms companies (11%), social media providers (6%) and online payment services (40%) lagging behind.
Only 30% of respondents claimed to be “completely satisfied” with the range of payment options available, increasing to 40% amongst sole traders.
Sole traders are the most comfortable with alternative payment methods, with 56% using online banking and 32% using their debit card online to make online payments.
Despite this, just 9% of these sole traders said they accept online card payments from customers, with 36% of all small businesses 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.”