The news: More than 4 in 10 small and medium-sized businesses are willing to pay for a credit card that increases the security, flexibility, and speed of payments they make, per a PYMNTS report in collaboration with Mastercard.

How we got here: Forty-five percent of SMBs said they’re highly interested in reducing their reliance on cash to make payments, per PYMNTS. 

This number increases for operations that are highly dependent on cash, with just 46% of SMBs with high cash reliance using a commercial card to meet payment needs.

Why this matters: Issuers have an opportunity to reach out to small businesses that may have been overlooked for commercial credit card access.

These businesses need the solutions that a credit card can provide, such as disputing charges, making a payment without having the cash liquidity on hand, or speed in paying suppliers. 

However, issuers trying to lock in SMBs need to address barriers to adoption.

• 10.3% of SMBs name costs and fees as their biggest barrier to paying with cards and digital technology.
• 7.7% cited concerns about transaction delays or system outages.
• And 6.8% said their habitual reliance on cash was the biggest barrier.

Recommendations for issuers: Issuers can build products that address specific concerns for small businesses.

• Cash-flow assistance. SMBs list payment flexibility and liquidity as major wish list items. Designing card products that target those concerns first and then broadening out the scope of rewards later can help secure new acquisitions.
• Help to reduce reliance on cash. Cash-heavy SMBs are dominated by Gen Zers, who are less likely to be entrenched in payment patterns and may be open to new alternatives. Cards must achieve what cash already excels at—simplicity and immediacy—to convince small business owners to make the switch.

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