According to Bank of America’s third annual Small Business Payments Spotlight survey and report released today (September 9, 2019), small businesses are rapidly turning to eCommerce and expanded payment options.
Shifting consumer preferences are driving the change. Convenience, security and the wealth of product information available online also play key roles in the changing landscape of payment options for merchants and customers, alike.
The survey was conducted by Forrester Consulting and sponsored by Bank of America Merchant Service. The survey covered 500 small business owners and 500 consumers throughout the U.S.
Small business shoppers continue to seek convenience
Key finding: Digital wallets and third-party payment services both doubled in usage in the past two years.
Digital wallets (think Apple Pay, Google Pay, Paypal) used by small businesses in a brick and mortar store continue to grow.
11% | In 2017, digital wallets were used by about 11 percent of customers
27% | In 2019, digital wallets were used by about 27 percent of customers
The cost of data breaches continues to grow more costly – for both a small business’ bottom line and customer loyalty
Key finding: Nearly 30 percent of consumers indicated they would not shop at a small business that had experienced a data breach.
31% | In 2017, the annual percentage of of small businesses paying over $50,000 to resolve issues related to data breaches
41% | In 2019, the annual percentage of small businesses paying over $50,000 to sersolve issues related to data breaches
Small businesses continue to embrace eCommerce to stay competitive and grow sales
Key finding: 44% of consumers younger than 30 use their mobile device while shopping more often today than five years ago.
70% | Percentage of small business shoppers who engage in eCommerce through a website, app or third-party market