While a survey finds that UK small business owners are fuelling demand for alternative finance, a report from Visa Europe suggests that they are less keen on exploring providers other than the banks for payment services.
Visa Europe polled 750 UK small business owners and found that 59% trust their bank or building society as their payment provider; some way ahead of alternative providers such as online payment services (40%) telecoms companies (11%) and social media providers (6%).
Only 30% of respondents claimed to be “completely satisfied” with the range of payment options available. Satisfaction levels decrease as company turnover rises, suggesting as businesses grow they are looking for more options to offer customers.
The figure increases to 40% among sole traders and this group are most comfortable with alternative payment methods, with 56% using online banking and 32% using their debit card online to make online payments.
Despite this, only 9% of these sole traders said they accept online card payments from customers, with 36% of all small businesses using debit cards to make payments but only 22% accepting such payments in return.
“The banking and payments proposition for small business is different and has to be treated so,” said Kevin Jenkins, managing director of Visa UK. “Resources are scarcer and the time to invest in and consider these kinds of issues is typically less.
“Given the top three barriers to change are cited as perceived cost, risk, and other priorities being focused on, that suggests we need to start with making these products as accessible and useful for this audience as possible.”
Despite being behind the likes of Europe and China, the US payments industry is now rapidly advancing, said Anish Kapoor, CEO of AccessPay told GTNews in an exclusive interview.
Using data for predictive analytics is the future of banking success, argued Jean-Laurent Bonnafé, CEO of BNP Paribas, in his session on how the bank is reinventing its approach to innovate with and for corporates.
The annual BNP Paribas Cash Management University kicked off on Thursday morning with treasury professionals congregating in Paris from across Europe.
Treasurers are more interested in cross-border payments and automation than real-time payments, as they are consistently asked to do more with less, argues Rick Burke, head of corporate payments at TD Bank in an exclusive interview.