Paysafe research reveals U.S. and Canadian retailers and service providers with expanded online presences and in-store payment offerings have best weathered COVID-19
Four fifths (80%) of North American in-store small and medium-sized businesses (SMBs) that have diversified online or enhanced their card-present payment offerings during the COVID-19 pandemic have seen a positive impact, according to research from Paysafe, a leading specialized payments platform. The data released today suggests the SMB space’s future will be dependent on omnichannel payments and technology.
Paysafe’s latest ‘Lost in Transaction’ research, which surveyed in-store retailers as well as dentists, vets, hairdressers, restaurants and other service providers in the U.S. and Canada between September 9th and 18th , 2020, revealed that a large majority of businesses (88%) made at least one change to their checkouts during the pandemic. As a result, 39% reported that their volume of business had actually increased amidst COVID-19. This business uplift was attributed to online sales through either a new or existing offering by 64% of SMBs.
COVID-19 has served as a catalyst for SMBs diversifying online, with almost a quarter (23%) launching an online, card-not-present (CNP) checkout for the first time during the pandemic, adding to the 50% of businesses that already have one. Of the minority without an online presence, 17% plan to add an online checkout in the near future, with only 10% having no such plans.
In terms of limiting physical interactions, SMBs have also focused on enhancing their card-present checkouts, with 44% adding the acceptance of contactless payment on delivery and 44% adding card payment on delivery. Curbside ordering and pickup has also been adopted by 35% of SMBs.
Other innovations included launching an app to enable payments without staff contact (28%) and launching subscription services (18%). Overall, over a third of SMBs (35%) have integrated a completely new payment method due to COVID-19.
Against the backdrop of payment innovation and contagion concerns, acceptance of cash has declined significantly, with 21% of SMBs still not accepting it as an in-store payment method. However, two thirds (64%) of currently cash-free businesses plan to reaccept it in future.
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