Paysafe Survey: SMBs Prioritize Payment Innovation & Security

Payment platform Paysafe released its “Balancing the Books” report, based on data collected from 1,000 small and medium-sized US businesses (SMBs), providing insights on payments, technology, and business across various industries.

According to the report, as many as 96% of SMBs processing in-person payments intend to upgrade their payment technology in the next 12 months. Over half (52%) plan to upgrade their point of sale (POS) system to support mobile and contactless payments, with 47% planning to introduce mobile POS terminals.

The report shows unified business management is a key focus area for SMBs, with 82% having integrated their payment technology with accounting software, 72% with customer relationship management (CRM) software, and 66% with an inventory management system.

Unsurprisingly, SMBs are increasingly interested in e-commerce, with 70% already selling online and all but 10% of those planning to diversify and expand their online channels. Of the 30% that still haven’t ventured into e-commerce, two-thirds plan to do so in the next 12 months.

Paysafe’s research shows that SMBs highly value payment innovation. Nearly half (46%) would consider instant or real-time payments. Moreover, 41% are interested in ”tap on phone,” a payment technology that lets businesses turn any smartphone or tablet into a contactless terminal.

Furthermore, Paysafe’s report shows that 75% of SMBs believe AI plays a critical role in their payment process, with 79% seeing its value in combating fraud. Payment security is, in fact, a major concern for 77% of SMBs. As a result, 47% hope to increase their payment security over the next 12 months.

More than a third of the surveyed businesses cite settlement delays as a big cash flow disruptor, causing 42% of SMBs to pay their vendors or employees late. One potential solution is choosing a payment processor like Paysafe that offers instant funding options.

Nearly half of the respondents (48%) see high interchange fees as their biggest processing challenge. That’s why payment processors like Stax, which don’t add a markup to market interchange rates, are growing in popularity – they can help some businesses reduce their transaction fees.

Despite economic challenges and uncertainty, an overwhelming 92% of small businesses feel optimistic about their future. More than half of the survey respondents (51%) anticipate revenue growth of more than 20% over the next year.