Paysafe: US In-store SMBs Embrace Payments Technology Alongside Cash Acceptance
December 02 2021 - 9:00AM
Business Wire
Paysafe-commissioned research reveals cash’s comeback in-store
even as retailers and merchants adopt eCommerce checkouts,
contactless payments and explore crypto
Close to three quarters (71%) of U.S. small and mid-sized
businesses (SMBs) that primarily sell through physical stores now
have eCommerce checkouts, with 19% of these merchants diversifying
online during the pandemic, according to research commissioned by
leading specialized payments platform Paysafe (NYSE: PSFE). The
report released today also indicates the inexorable rise of
contactless payments, even as SMBs protect the cash consumer while
exploring new payment methods like cryptocurrency.
The latest edition of Paysafe’s annual ‘Lost in Transaction’ SMB
research, which surveyed American in-store retailers as well as
restaurants and other service providers in October 2021, reveals
that more than half (53%) of SMBs think that the future of retail
will be mostly online. However, merchants appear to feel there will
always be a place for physical stores, with less than one out of 10
(8%) strongly considering becoming an online-only business.
In-store SMBs’ online diversification precedes the pandemic’s
emergence. Close to half of SMBs with an eCommerce checkout (46%)
moved online before COVID-19, while 35% launched as omnichannel
businesses from day one, with an online checkout to complement
their physical store.
Of the less than a third of SMBs (29%) without an online
presence, 43% expect to launch an eCommerce checkout within the
next 12 months or more, though 50% have no such plans.
In-store, contactless adoption continues to trend higher, with
three quarters of SMBs (73%) now accepting either contactless
credit or debit card payments or mobile wallets at their checkout.
The 27% of merchants without NFC-enabled payment terminals is
expected to continue to decline, with 76% of these SMBs planning to
upgrade in the future.
Despite the growth in contactless, cash has made a comeback
in-store. Almost all SMBs (89%) now accept cash payments, with a
fifth of these merchants (18%) reintroducing cash after temporarily
stopping acceptance during the pandemic. Cash’s future looks
assured, with 90% of SMBs planning to keep accepting cash, 5% still
undecided and only 5% planning to go cashless.
Meeting consumer needs appears to be the primary reason for
cash’s endurance, with 59% of SMBs saying they want to offer as
many payment methods as possible, and 33% even specifying that
their customer base includes cash-reliant unbanked and underbanked
Americans.
However, SMBs are focused on cutting-edge point of sale (POS)
terminals, with three quarters (73%) feeling it’s important to have
the most up-to-date terminals. Although fixed-terminal card readers
dominate in-store (59%), 45% have wireless card readers installed
and 29% self-service checkouts.
SMBs are also demonstrating a forward-thinking approach to new
payment methods like cryptocurrencies. More than one-in-ten SMBs
(12%) offer cryptocurrency payment acceptance, while a further 36%
aim to accept crypto within the next three years.
Afshin Yazdian, CEO of U.S. Acquiring at Paysafe, commented:
“The pandemic forever changed Americans’ retail and payment
preferences. As in-store retailers and other SMBs look to attract
new customers and retain their existing clientele, they are
diversifying their payment acceptance to meet consumer demand.”
He added: “The merchants that will not only survive but thrive
in 2022 will offer their customers an omnichannel payments offering
that extends their physical store online and into consumers’ smart
phones. Forward-thinking SMBs will seamlessly combine traditional
payments such as good, old-fashioned cash and contactless card
payments with alternative payment methods like mobile and digital
wallets as well as emerging U.S. payment methods such as online
cash, or eCash, and crypto.”
###
About the research: Lost in Transaction: Finding Competitive
Advantage at the Checkout
To compile this report, Paysafe commissioned a survey by Sapio
Research among 201 payment decision makers at U.S. in-store
businesses with a company size of 1-50 employees and which sell
mostly or only to consumers. The interviews were conducted online
in October 2021 using an email invitation and an online survey.
To download the full research report, visit:
https://www.paysafe.com/en/blog/lost-in-transaction-finding-competitive-advantage-at-the-checkout/
About Paysafe Limited
Paysafe Limited (“Paysafe”) (NYSE: PSFE) (PSFE.WS) is a leading
specialized payments platform. Its core purpose is to enable
businesses and consumers to connect and transact seamlessly through
industry-leading capabilities in payment processing, digital
wallet, and online cash solutions. With over 20 years of online
payment experience, an annualized transactional volume of U.S. $100
billion in 2020, and approximately 3,400 employees located in 12+
global locations, Paysafe connects businesses and consumers across
70 payment types in over 40 currencies around the world. Delivered
through an integrated platform, Paysafe solutions are geared toward
mobile-initiated transactions, real-time analytics and the
convergence between brick-and-mortar and online payments. Further
information is available at www.paysafe.com
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version on businesswire.com: https://www.businesswire.com/news/home/20211202005596/en/
Nick Say, Senior Manager, Corporate Communications, North
America, Paysafe T: +1 514 452-8747; E: Nick.Say@Paysafe.com
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