During the last years, customers change their spending quite a lot and it is worth checking the various payment methods, before selecting any of it. In UK, lockdown restrictions accelerated the use of credit and debit cards. Younger shoppers tend to use mobile payments and this method is gaining traction. Although many businesses stopped acceptingit, cash remains the preferred method for older shoppers. As trends as well as habits change, you may need to consider several
Mobile payment
Over 7 million people added mobile payments to their shopping habits during the pandemic. Mobile solutions such as Apple Pay are removing the need to carry a physical wallet, enter a PIN, or sign receipts. This creates an easy, frictionless, and secure payment process that’s now expected by consumers. By responding to this demand, you could encourage more people to shop with you rather than with the competition.
Online
Recent increase in online shopping, retailers are required to offer an online payment method that’s easy and secure to use. Online payments can be taken directly using bank account details, a credit or debit card, or via an all-in-one payment facilitators. As with physical transactions, you may need to set up an e-commerce platform, merchant account as well as a payment gateway to accept card payments. Getting set up can involve considerable fees, and you’ll have to pay ongoing transaction charges. However, the growth and popularity of sales online, increase revenue stream and will cover these recurring bills and increase profits.
Cash
This has always been the primary form of payment in the UK. This type of payment has been favoured by some small businesses because it means instant cash reception. This can help business owners manage their finances and prevent cashflow dips and gaps. Importantly, unlike card payment systems, there are no transaction fees associated with cash. If you’re operating with narrow profit margins, these savings can be significant. However, as many consumers are demanding more convenient payment options, cash-only businesses may find their customer base is limited.
Card
Credit and debit cards have become the most popular method of payment in the UK, with contactless cards alone accounting for over 25% of payment performed. This growing popularity turns card acceptance a must have for any SME. The speed and convenience of contactless payments reduce checkout times, creating a positive customer experience, and encourage larger purchases. However, this option comes with a number of costs, including transaction fees and monthly service charges.
As a small business owner, it’s important to offer a range of payment options so you never have to turn away potential customers based on their choice of tender. By keeping your business flexible and sensitive to trends in consumer spending, you can ensure you always offer the right payment options at the right time.
