Small- and medium-sized businesses (SMBs) are under growing pressure to match the convenience offered by larger retailers, with nearly eight in 10 (79%) saying their customers expect them to offer more than debit payments at checkout.
A further 43% of SMEs also said they are concerned about competing with larger retailers as consumer expectations continue to grow. Smaller businesses are now looking for new ways to drive sales, and win customers.
The findings, commissioned by payments network Affirm, come as new Buy Now, Pay Later (BNPL) rules take effect in the UK, creating an opportunity to improve access to responsible payment options for smaller businesses.
Almost nine in 10 (88%) SMEs said that offering flexible payment options like BNPL would drive business growth, while 85% said they have a positive impact on customer experience.
This untapped customer demand is potentially a significant driver of business growth, with SMEs reporting improved conversion rates (85%), order value (84%) and repeat purchases (85%) as a result of offering flexible payments.
Despite recognising these benefits, many SMEs say offering flexible payments remains unnecessarily difficult. More than half (51%) are concerned about the cost of regulation and compliance.
SMEs also want flexible payments to be fair and transparent for their customers. More than three-quarters (77%) say it is important that they can offer a transparent, customer-friendly BNPL option that doesn’t rely on late fees or hidden penalties.
