UK SMEs are missing out on £800 Million worth of sales
SMEs are missing out on £800 million worth of sales each year by not accepting card payments. A huge 64% of UK businesses do not have anything set up to accept payments by card, and one in ten firms lost more than £1,800 in the past year by not accepting card.
The study shows that out of the £1,000 consumers who took part in the study, found that 65% of people carry £20 or less with them at any one time and 46% of the respondents admit to abandoning a purchase as they did not have enough cash on their person.
Out of the £1,000 SMEs in the study, 13% said they couldn’t afford the monthly cost of the Chip and Pin machine and £10% of business owners were deterred by the high set up cost.
PayPal have introduced an affordable card payment terminal to suit the needs of the smaller business, and this could be the solution to SMEs problems, “nowadays few consumers are carrying a chequebook with them or even cash” stated Narik Patel director of PayPal’s mobile merchant services, “businesses need to offer consumers alternatives, otherwise they risk missing a sale”.
“Many small businesses have not offered card payments in the past because they’ve been put off by high fees and long-term contracts. We wanted to create an affordable ‘pay as you go’ option for them” Narik adds.