SMB update: WePay survey finds payment challenges galore

May 17, 2017 Payments
Rachel Kolander
By Rachel Kolander, Product Marketing Manager
Rachel Kolander
By Rachel Kolander, Product Marketing Manager

What’s it like to run a small business? What obstacles do small business owners face? The WePay SMB & Money Survey, a national survey of 505 U.S. small business owners, addressed these and other questions. The survey was conducted by market research firm Survata on behalf of WePay.

The data reveals that SMBs across the country experience many payments-related challenges. In the past year, 41% of SMBs surveyed have dealt with cash flow management issues, and 16% have experienced payment fraud. In a similar vein, a quarter of SMBs surveyed have experienced a payment chargeback in the past year.

Dealing with payment fraud is particularly painful for SMBs:

  • 57% of those affected report a consequential or highly consequential financial impact on their business
  • 48% of those affected report a consequential or highly consequential administrative impact on their business

Notably, small business owners also deal with emotional ramifications due to payment fraud. For example, 58% said the emotional impact of dealing with fraud is consequential or highly consequential. Evidently there are many costs to small business owners in handling fraud and other payment challenges.

In light of these hurdles, what’s a small business owner to do? Of course we’re biased here… yet we genuinely believe integrated payments can help alleviate these issues. Companies like WePay invest in risk management tools and processes (such as transaction monitoring) to identify and address fraud before it happens.

Data from the WePay SMB & Money Survey reveals additional benefits for SMBs that accept payments online. Business owners who accept all of their payments through software platforms experience a 15% lower incidence of cash flow management issues. This could be due to the increased productivity of these SMBs, as platform usage takes the hassle out of getting paid. Additionally, these SMBs report lower rates of administrative burden for any cash flow management issues that do arise.

Another benefit of processing payments through a software platform: fewer visits to the bank are needed! SMBs that process all payments online are much less likely to go to the bank on a daily or weekly basis. While 10% of all SMBs never need to make bank trips for their business, this figure is 45% for SMBs who process all of their payments online. By enabling customers to pay via credit card and debit card online (as opposed to receiving cash and checks in the mail), less trips to the bank are required.

For more insights on how integrated payments can benefit both platforms and SMBs, check out this blog post.

About the author

Rachel Kolander

Rachel Kolander, Product Marketing Manager

Rachel Kolander is a Product Marketing Manager at WePay. She brings experience launching new SaaS products, as well as four years of work in finance. When she's not thinking about payments, you can often find her exploring a hiking trail or in a ClassPass exercise class.

More blog posts by Rachel Kolander