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Data for today’s episode is provided by Mercator Advisory Group’s report – U.S. Small Businesses are Reeling as a Result of COVID-19
Small Business Payment Methods Are Changing:
- Business credit cards are still the dominant transaction type (56%), but a host of transaction types are gaining popularity.
- Small businesses’ use of PayPal jumped from 18% in 2019 to 26% in 2020.
- Direct transfers increased from 16% in 2019 to 20% in 2020.
- Business debit card use (42%) increased 8% from 2019, as did business charge card use (31%).
- Use of personal debit cards increased 8% in 2020, up to 26% from 18% in 2019.
- Business checks declined in use from 41% to 39%.
- Petty cash for small purchases also decreased from 12% in 2019 to 9% in 2020.
Mercator Advisory Group’s new Insight Summary Report, 2020 Small Business PaymentsInsights, COVID-19 and B2B Payments & Cards – The Result of the Pandemic, reveals that U.S. small businesses have a much less positive view of the future than in previous years. The report is the first of three from Mercator’s annual Small Business PaymentsInsights Survey Series, a part of Mercator’s Primary Data Service. It is based on findings from Mercator Advisory Group’s online survey of 2,000 U.S. small businesses fielded in March and April 2020.
The report details the ways COVID-19 has changed small businesses and their outlook on the near-term future of their businesses. The report also provides insight into how small businesses bank and pay for goods and services, their banking relationships, how they view technology and their top business concerns.
“Small businesses have been hit hard by the pandemic. In many ways, more than their larger counterparts. Organizations that service small business have an opportunity to help these firms as they try to come out of the COVID crisis,” states the author of the report, Pete Reville, Director of Primary Data Services including Small Business PaymentsInsights Survey Series at Mercator Advisory Group.