Cash isn’t cool: Why UK businesses need payment service providers

April 26, 2017

Small business owners looking to expand their empire know how important it is to align with a flexible payment services provider able to offer strong foundations, commitment and expertise.

Just as small business owners invest in building long-term relationships with their target market and local community, they can also benefit from working with payment services providers that support them in growing their brand.

Payment trends in the UK are constantly evolving thanks to the internet, and carrying cash is no longer cool.

Statistics from Paul Hastings in conjunction with the Centre for Economics & Business Research (Cebr) and YouGov found that the value of non-cash payments will rise to £1.44 trillion by 2026.

With this meteoric rise in contactless and mobile payments, it’s essential that small businesses work with a complex payment services provider to offer greater financial flexibility to customers instead of just cash payments – that is, if they want to survive and grow in the market.

Having a strong relationship with the right payment services provider can open up a world of new financial opportunities for any business. Looking to grow your company and enter new markets? Read our blog ‘Can a consultative payment services provider boost SME growth?’ to find out more.

Offer greater customer service with a complex payment services provider

The right payment services provider should not only understand the challenges that small businesses face. They should also work with them to adapt current processes for the benefit of their growth ambitions, and to provide a better service for consumers.

Paul Hastings’ statistics highlight the huge technological trend that smaller businesses must tackle. Over the next decade, in the UK alone, there are set to be 19.1 billion contactless transactions per year. In fact, contactless payments tripled in the UK last year alone.

For the average small business owner who feels like they have little choice when it comes to finding a payment services provider, how do they keep on top of a quickly-evolving financial industry, as well as the alternative financing solutions their customers and competitors are using? With many small business owners overworked and understaffed, focusing on their business and maintaining high standards simply takes precedence over payment services research.

Good payment services providers can lighten your workload

This is a problem especially felt by smaller businesses, whose owners may feel they are being held to ransom by their current payment services provider.

That will only continue to develop as the fintech sector comes out with new apps and alternative finance gadgets to make payment services more flexible and convenient for consumers.

This is particularly pertinent for small businesses with a younger customer base. Nearly half of millennials have made a payment using an e-Wallet on their mobile, according to a survey by Square, compared to only 26% of adults over the age of 35.

In fact, new technology is creating pioneering payment services around the world. Banks are steadily being replaced with mobile phones in areas such as Kenya, India and Romania.

With the financial situation changing on a high-street level at a very fast pace, small business owners need to adapt and grow with a payment services provider that understands how the company and its sector operates.

Fibonatix works with small business owners to implement flexible payment services to help their operations grow, while navigating the complex fields of industry regulation and due diligence. Get in touch to learn more.

Having a strong relationship with the right payment services provider can open up a world of new financial opportunities for any business. Looking to grow your company and enter new markets? Read our blog ‘Can a consultative payment services provider boost SME growth?’ to find out more.