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SMEs risk losing out on Christmas income totalling £2bn if they don’t accept cards
A new study has revealed that almost half of all shoppers will not spend money with a business this Christmas if it doesn’t provide facilities to pay by card.
A study, commissioned by card machine provider Paymentsense, has found that 45 per cent of UK shoppers walk out of cash-only smaller retailers and independent outlets because they cannot pay by card, while a quarter of customers are also unlikely to return to a business if it did not take cards on a former visit.
More than 1,000 consumers took part in the research, which also revealed that shoppers use their cards to spend just under £135 a month at smaller retailers, independent restaurants and cafes. It also found that 80 per cent of those surveyed owned a contactless card.
By extrapolating the data, the study suggests that more than £2 billion of consumer spending could be missed out on by small businesses which cannot take card payments in the month running up to Christmas.
Guy Moreve, Head of Marketing at Paymentsense, said: “Contactless card payment is fast becoming the norm, with our research showing that most consumers now use credit and debit cards. Shoppers now expect to use them almost everywhere – either in a traditional or contactless manner.
“As well as the significant revenue loss, our study suggests that smaller retailers and cafes who don’t yet take card or contactless payments could permanently lose every fourth customer, which would be a particularly difficult blow at this busy time of year.”
LINK: Cash-only SMEs risk Christmas losses worth a total of £2bn