UK SMEs have lost out on £7bn as a result of not being able to take card payments, new research suggests.
A study by Barclaycard found that three out of five SMEs cannot currently accept card payments even though three quarters (74.5%) of all retail transactions across the country are now being carried out in this way.
Of those who cannot accept card payments, a quarter admits this has resulted in lost sales opportunities.
By not offering customers the option of paying by card, these SMEs lose out on around one sale per week – with each opportunity worth on average £182. This quickly adds up, amounting to £10,884 lost revenue for each business over the course of a year.
Furthermore, almost a quarter of SMEs (24%) say their inability to convert sales opportunities has had a significant impact upon the growth of the business.
At present, just four out of 10 SMEs (42%) offer customers the option of paying by credit or debit card. Of the 58% that don't, more than a quarter (28%) choose not to because they believe this would entail significant cost, and one in 10 (11%) think it will be too complicated and wouldn't know where to start.
Philip McHugh, CEO of Barclaycard Business Solutions, said: “For any business, the challenge is to first secure customers’ interest and then to convert the interest into sales. However, our research has shown that many small businesses are falling at the final hurdle and losing customers and vital revenue by not accepting card payments. This is a problem that can be cheaply and easily solved.”
Sally Percy is editor of The Treasurer