PayPal Stories Archive

Our latest study has revealed that many small British businesses are missing out on sales by limiting the number of ways they can get paid by customers.

 

We spoke to 2,000 UK small business owners and more than 2,000 British consumers. And the gap between the two groups’ expectations when it comes to shopping was stark[1]. While most UK consumers in recent years have completely transformed how they browse, order and pay, many sellers remain stuck in the 20th century, only accepting the likes of cash, bank transfers and cheques.

 

According to our research, over two in five small businesses admit they have never reviewed how they take payment from customers, while only 17% have a website designed for access on a smartphone or tablet. Just 4% have a smartphone app that takes payments, despite mobile shopping growing at nearly four times the rate of overall online spending in the UK[2]. In contrast, a fifth of consumers say they most frequently buy goods or services online using their smartphone.

 

The bottom line is that not offering modern payment options could reduce small businesses’ potential sales. Our research found that over half of UK consumers admitted to abandoning a purchase in store during the last three months because they couldn’t pay the way they wanted to and this rises to almost two thirds when shopping online.

 

So what can British businesses do to make sure they don’t miss out on the payments revolution?  How can they capitalise on consumers’ growing enthusiasm for their digital wallet and embrace a contactless, or potentially cashless future?

 

The good news is that modern ways to pay are designed to make life easier for small businesses as well as consumers. Integrating a more efficient, secure check-out process where customers don’t have to enter their card and delivery details every time they buy something is simple and can help convert browsing into buying. This is especially the case with customers increasingly shopping on small smartphone screens.

 

NFC-enabled contactless card readers, such as our own PayPal Here device, mean businesses of any size can now accept Chip & PIN, contactless payments and even Apple Pay or Android Pay payments on the move. This can be especially helpful for industries that have traditionally been reliant on trading in person via cash and cheques or by bank transfers, such as plumbers, taxis or market traders.

 

Accepting a variety of payment options is easier than small businesses might think and with more and crucially with more customers expecting new, more convenient ways to pay, our research confirms that businesses that fail to keep up may be are missing out.

 

To explore the research findings in more detail, visit our website.

 

 

 

[1]All statistics, unless otherwise stated, are taken from research conducted by Censuswide on behalf of PayPal between 09.07.16 - 16.08.16. Censuswide surveyed 2120 consumers in the UK, aged 18+, and 2000 UK business owners/self-employed with a turnover of up to £1 million per annum and fewer than ten employees. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles.

[2]Source: Research undertaken by PayPal and Ipsos into global attitudes to cross-border shopping, released in November 2015