Over half of start-ups are trading using online and mobile wallets, compared to just 36 per cent of businesses that are over three years old, reveals Streamline research. This number rises to 68 per cent when looking at card-accepting start-ups, suggesting that businesses that accept credit and debit card payments are most likely to adopt other innovative payment methods.
The research also shows that an increasing number of start-ups are offering contactless payment methods in store. This is likely to be a result of growing consumer demand. Meanwhile, as more advanced sales channels grow in popularity, dated channels are quickly dying out. Just 49 per cent of start-ups are now accepting telephone orders compared to 63 per cent of older businesses.
This highlights how the attitudes of start-up owners towards technology differ from more established SMEs, with 28 per cent of start-up directors saying they “must have the latest technology” compared to 20 per cent of established SME owners.
Robin Mackenzie, Head of Small Business at Streamline, said: “Today, start-ups are under intense pressure to have a clear point of differentiation and quickly drive revenue into the business. It is understandable then, why business owners might be more amenable to payment channels that increase spend, access new customers or improve the purchasing experience, whilst keeping costs and admin time to an absolute minimum.
Start-up owners’ approaches correlate to the changing attitude of consumers about how they want to pay for goods. The public are driven by a need for speed and will often choose technology over personal interaction, an approach which is fuelling the uptake of new payment methods. It has, therefore, become essential for small businesses to change with the times and give the public not just the best price, but also the best payment method.”
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