GB retailers are failing to keep up with consumer demand for new payment methods, a study has found.
Almost two thirds (64%) of consumers say debit/credit card is their preferred method of payment but only 1/3rd of SMB retailers accept credit or debit cards while 25% of shop owners of respondents say customers ask if their business accepts card payments at least once a day.
UK retailers failing contactless payments using customers
As a result, nearly one third (31%) of consumers say they are inclined to put an item back on the shelf and go elsewhere if the shop doesn’t support card payments while 17% will reduce the number of items they purchase.
But it’s not just card payments that customers want to see more of. 25% of consumers say stores that offer a greater range of payment methods make them more likely to shop there while 16% admit that new and innovative types of payment options – like contactless, mobile apps and websites accessed in store – would make them more likely to visit a particular outlet.
But the growing consumer demand for different payment options is yet to be matched by actual adoption of the new technology. Just 6% of SMB retailers currently support contactless payments while 3% provide mobile apps.
They do though expect this to change. Over one third (36%) expect contactless payments or transactions via mobile apps (35%) to rise in the next five years. In addition, almost half (46%) of British retailers expect card payments to increase, despite 46% of business owners saying card already accounts for more than 50% of current transactions.
Simon Black, CEO at Sage Pay commented: “It’s clear that technology and innovation in retail are failing to evolve fast enough. Consumers want choice, flexibility and convenience when it comes to paying for goods – and if they can’t have it, they’ll go elsewhere. As this research shows, the future of payments is cashless. Small and independent shops must embrace change now – or risk losing out on vital profits.”
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