Quantity of Banking Services Utilized by Small Businesses
The latest report from the Mercator Advisory Group, titled "Payment Cards and B2B Payments: Riding a Wave of Positivity," reveals some interesting trends in the world of business-to-business (B2B) payments. The report is the first of three from the annual Small Business Payments and Banking Survey Series.
According to the report, small businesses in the United States typically use an average of five to six banking services. However, the survey findings show a clear preference for using check payments as their main payment method, with 42% of small businesses relying on business checks. This traditional method remains dominant despite growing enthusiasm for electronic payments.
The report also highlights a positive outlook on payment cards in the B2B space. Business credit cards, in fact, are the most common payment method for small businesses, with 52% of them using them. American Express is used by 34% of small businesses, while Mastercard is used by 59%. Visa leads the market share of credit cards used by small businesses, with 69%.
Interestingly, personal credit, debit, and checks demonstrate small businesses' comingled finances, with 22%, 18%, and 16% usage respectively. Discover is used by 13% of small businesses.
The survey, which included findings on small businesses' criteria for choosing a new credit card for the business, also reveals that over 56% of small businesses use more than 14 different banking services.
The report is based on findings from an online survey of 2,002 U.S. small businesses fielded in March and April 2019. The survey's findings include attitudes toward cash flow and line of credit, as well as the average number of cards held per company.
In summary, the Mercator Advisory Group's report suggests that while small businesses are generally positive about the future of their firms, they still show a clear preference for traditional check payments in B2B transactions. The report also highlights a positive outlook on payment cards in the B2B space but notes the persistence of checks as a preferred choice among small businesses.
- The preference for traditional check payments, despite the growing enthusiasm for electronic payments, is evident in the B2B space as they are still the main payment method for 42% of small businesses.
- Business credit cards are the most common payment method for small businesses, with 52% of them using them, and Visa leads the market share of credit cards used by small businesses, with 69%.
