Nearly Half of SMBs Are Loyal to a Single Provider for Payments, Payroll, Invoicing and Accounting, Says New Report
Marketwired
ATLANTA, GA--(Marketwired - Dec 7, 2015) - Nearly half (48 percent) of small and medium businesses (SMBs) use one technology supplier to handle accepting payments, processing payroll, issuing invoices and accounting, according to the PYMNTS.com SMB Technology Adoption Index, powered by Sage, for fourth quarter 2015. Meanwhile, 34 percent of SMB respondents use two or more suppliers for their financial technology solutions.
"Small and medium businesses want a flexible, integrated, end-to-end system for managing the movement of money -- that is, seamlessly getting paid, making payments, and managing cash flow -- and vendors who can provide these types of solutions have a distinct opportunity," said Paul Bridgewater, CEO of Sage Payment Solutions, the payments division for Sage North America. "Price isn't necessarily the primary consideration for SMBs; rather, they want suppliers who can deliver a comprehensive solution to help them smartly manage their companies."
Tweet This: Half of #SMBs use one payment, payroll, invoicing & accounting provider finds @SageNAmerica & @PYMNTS index http://bit.ly/1Ru8hHI
Other interesting findings from this quarter's SMB Technology Adoption Index include the following:
64 percent of SMBs that are not currently prepared to accept EMV cards have no plans to do so.
Electronic invoicing is gaining adoption as 31 percent of SMBs use electronic invoicing, and, of those SMBs, 20 percent can also accept payments electronically.
46 percent of SMBs cite not getting paid on time as the most frustrating thing related to receiving payments from customers.
Scheduled to be released jointly on a quarterly basis by Sage, the market leader for integrated accounting, payroll and payment systems, and PYMNTS.com, the premier source of news and commentary on innovation in payments, the SMB Technology Adoption Index looks at business and technology trends impacting small and medium businesses in the U.S.
"With nearly 28 million small businesses and 22 million self-employed workers in the U.S., small and medium businesses account for about 60 percent of net job creation," said Karen Webster, CEO of PYMNTS.com. "It's vital for us to have a continuous understanding of the support these businesses need in order to continue to grow and thrive. The quarterly SMB Technology Adoption Index will provide that, while educating SMBs about the important technology options available to them."
According to the SMB Technology Adoption Index for fourth quarter 2015, U.S. small and medium businesses are relatively slow to adopt payments technology, with 60 percent of those surveyed saying their highest area of technology adoption is for managing the payroll process.
"Small merchants are more focused on their primary business than payment technology, despite a plethora of options available to streamline the payment process," added Bridgewater. "While somewhat understandable, this approach could be dangerous and lead to slower growth since businesses can gain major benefits from more effectively handling the movement of money."
Tomorrow, Tuesday, December 8, at 1 p.m. ET, Bridgewater and Webster will discuss the Index, plus issues and solutions for small and medium businesses, during a live webcast. To register, please visit: http://bit.ly/1lUUf68
View the full SMB Technology Adoption Index for fourth quarter 2015 here: http://bit.ly/1O8s1vc
Research methodology The research was conducted through an online survey among 800 small and medium business professionals during October 2015. After removing incomplete responses, 684 were included in the analysis. Confidence levels are 92 percent to 97 percent.
ABOUT PYMNTS.com PYMNTS.com is reinventing the way in which companies in payments share relevant information about the initiatives that shape the future of payments and commerce and make news. This powerful B2B platform is the #1 site for the payments and broader commerce ecosystem by traffic and the premier source of information about "what's next" in payments. C-suite and VP level executives turn to it daily for these insights, making the PYMNTS.com audience the most valuable in the industry. It provides an interactive platform for companies to demonstrate thought leadership, popularize products and, most importantly, capture the mindshare of global decision-makers. PYMNTS.com .... where the best minds and best content meet on the Web to learn "What's Next" in Payments and Commerce.
About Sage Sage is the market leader for integrated accounting, payroll, and payment systems, supporting the ambition of the world's entrepreneurs. Sage began as a small business in the U.K. 30 years ago, and over 13,000 colleagues now support millions of entrepreneurs, across 23 countries, as they power the global economy. We reinvent and simplify business accounting through brilliant technology, working with a thriving community of entrepreneurs, business owners, tradespeople, accountants, partners, and developers. And as a FTSE 100 business, we are active in supporting our local communities and invest in making a real difference through the philanthropy of the Sage Foundation.
Sage -- the market leader for integrated accounting, payroll, and payment systems, supporting the ambition of the world's entrepreneurs.
