As hardworking as they are, small businesses aren’t going to roll out e-payment processor on their own, not with great success anyway. Yet, e-payment remains a great opportunity for these businesses to level the playing ground with bigger companies in meeting the demands of an overly choosy consumer base.
As the wave of digital migration drives into full gear, consumers seem more inclined to making payments through credit cards. It offers more flexibility and the convenience is usually excellent than other forms of payment. Since most small businesses are yet to fully roll-out their e-payment systems, sometimes they end up losing potential customers to the bigger companies just because the consumer couldn’t (or didn’t want to) pay using cash. Payment processors can play a big role in closing the knowledge gap between by helping these small businesses overcome the technology barrier. They can educate their customers about latest innovations in payment technology solutions. The processors too would benefit from this strategy.
The biggest difference between small and large businesses is the financial muscle. While larger businesses can afford to make the odd mistake without taking a serious financial hit, small business cannot. The small businesses have to get it right the first time otherwise it would be a lost opportunity. This is where processors need to come in – to help their consumers make the right choices. Recent studies by the Capital Small Business Health Index suggests that most small business owners lack knowledge in latest payment technologies and are therefore unsure of how to move forward. For instance, the study found that while close to half of small businesses are aware of the migration to EMV (chip and PIN) credit cards; only 19% had taken any steps to move to EMV.
The 2014 study shows that small businesses are very open to help. They cited rising cost of employment, competition, regulation, and new trends in digital marketing as some of the reasons why they would welcome such help. It was also found the small business owners are now more aware of funding options which include not only banks and government loans but also alternative finance providers and crowd-funding. However, in order to fully exploit these options, they need better knowledge of and updated e-payment systems.
In summary, processors have a tremendous responsibility of helping small businesses stay competitive. You can start by helping your customers understand the need for and open a high risk merchant account.