2016 Small Business Payments and Banking Survey: Payment Acceptance in a Complex Environment

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Mercator Advisory Group releases the first of three reports summarizing the results of the 2016 Small Business Payments and Banking Survey.

One of the 38 exhibits included in this report

On one hand, small businesses deal primarily with one payments provider On the other hand, ancillary payment service providers are joining the mix, offering an alternative source of expertise that address their increasingly complex payments needs.

In March 2016, Mercator Advisory Group fielded a web-based survey of U.S. small businesses (between $500 thousand and $5 million annual sales) regarding their use of banking and payments service. Payment Acceptance in a Complex Environment is the first of three reports summarizing the results of the 2016 Small Business Payments and Banking Survey.

The survey contained questions on today’s business sentiment, payment acceptance services, business-to-business (B2B) payments, and banking depository and loan services. Forthcoming companion reports summarize the survey’s findings on business-to-business payments and business banking services. A copy of the survey questionnaire, developed by Mercator Advisory group in consultation with our clients, can be found in the report’s appendix.

“What emerges from our survey data is a picture that is both reassuring and threatening to providers of payment services,” notes Ken Paterson, Mercator Advisory Group’s Vice President of Research Operations, the author of this report. “On one hand, small businesses deal primarily with one payments provider On the other hand, ancillary payment service providers are joining the mix, offering businesses an alternative source of expertise and service that address their increasingly complex and specialized payments needs.”

In total, over 1,600 qualified responses were obtained from decision makers at revenue-qualified small businesses that accept credit and/or debit cards for payment. The sample included a geographically dispersed quota of 500 responses from businesses with annual sales of $2–5 million and the remainder from businesses with annual sales of $500,000–$1.99 million.

Highlights of this Insight Summary Report include:

  • Most common sales channels by sales volume
  • Most common methods of payment by sales volume
  • Extent of adoption of omnichannel strategies
  • Acceptance of Bitcoin and other cryptocurrencies
  • Prevalence of “steering” of customers to cash payment
  • Extent of use of acquiring/merchant banks
  • Most common pain points
  • Prevalence of on-site ATMs, owned or hosted

This report contains 60 pages and 57 exhibits.

Subscribers to Mercator Advisory Group’s 2016 Small Business Payments and Banking Survey have access to these reports as well as survey crosstabs, PowerPoint slides of the report exhibits, and the option of requesting custom queries from the survey data.

For more information and media inquiries, please call Mercator Advisory Group's main line: (781) 419-1700, or send email to media(at)mercatoradvisorygroup(dot)com.

For free industry news, opinions, research, company information and more, visit us at http://www.PaymentsJournal.com.

Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

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Karen Yetter
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