SMB Owners Share Their Payment Pain Points in WePay’s State of Small Business Payments 2020 Survey
A ton has happened this year around the world – it’s been a rollercoaster – especially for small businesses. This global pandemic has affected different markets in various ways. For instance, we’ve seen grocery stores actually doing better compared to restaurants and event businesses that are really feeling the pain.
It has been heartbreaking to watch small businesses be turned upside down, many of them even forced to close their doors permanently. But it has also been really inspirational watching them reinvent themselves and embrace this change.
Their ingenuity and resiliency is helping them survive through all kinds of challenges like COVID-19. Recently, we sat down with our friends TouchBistro’s Alex Barrotti, Webconnex’s John Russell, and Vagaro’s Fred Helou to hear their personal observations of managing through the pandemic and what their customers have been doing to pivot their business strategies.
In this conversation, we learned about:
- TouchBistro adding the support of online ordering, curbside pickup, safety measures for outside dining, and managing food delivery
- Webconnex launching new virtual event functionalities to help their customers transition from all in-person events to virtual
- Vagaro providing resources to reopening, physical changes, and safety measures to its customers for contactless payments, virtual check-in capabilities, revamped floor plans, and other necessary business changes
We also discussed the findings from our State of Small Business Payments 2020 survey. What we discovered was that even though small business owners have increased their technology spend in the past two years, 39% say they still spend five hours or more per week dealing with payment pain points.
In fact, John from Webconnex pointed out that the stat that 61% surveyed have increased their technology spend is really interesting because that’s what they’ve seen in their business. More and more of their customers and potential customers are forced to adopt new technology to survive.
What the data shows is clear: small businesses have an appetite to embrace the power of integrated payments. This one finding highlights a huge opportunity for ISVs and platform businesses to deepen integrated payments with either our Link or Clear products. This is especially true in the rapidly growing hybrid online/in-person models that have become popular (curbside pickup for both retail and restaurants for example).
These survey findings help us learn a bit more about what small businesses are thinking about payments, banks, and technology. Other key highlights from the survey include:
Payments systems have challenges
- 25% of respondents experienced cash flow problems
- 18% lost $5,000+ in the past year due to slow payments
Small businesses want a trusted partner in their payments technology to address payment pain points
- 77% of companies with more than $1 million of annual revenue would consider working with a solution from a bank and ISV
- 28% are likely to change their payment system in the next year
We surveyed 1,000 U.S. small business owners in February 2020. Download the full report to learn more.