New insights from American Express’ Merchant Barometer reveal that nearly two-thirds (65 per cent) of small and medium-sized businesses (SMEs) say customer expectations around payment choice are higher than ever, with over half (52 per cent) planning to improve their online checkout experience in order to reduce levels of cart abandonment.
The research highlights that SMEs recognise the benefits of improving their payments stack; just under half (46 per cent) believe they would attract more customers by offering a greater choice of payment options. Yet despite this recognition, only a fifth (19 per cent) intend to prioritise improvements in the period ahead.
However, a proportion of respondents are making changes, according to the research, with an objective of attracting younger consumers. Respondents believe offering greater payment options will predominantly appeal to Gen Z customers, who increasingly expect flexibility when spending. Among the SMEs planning to make changes, over a quarter (28 per cent) plan to introduce QR code payments, and one in six (16 per cent) intend to introduce instalment options specifically to broaden their appeal to this cohort.
Dan Edelman, UK General Manager, Merchant Services at American Express, said: “Against a challenging backdrop, payments are one of the most powerful levers that SMEs can pull to help drive business growth. Offering customers their preferred way to pay, along with reducing friction in the payments journey, boosts sales and loyalty.
“That’s why we’re focused on making accepting American Express Cards more straightforward than ever before for SMEs. By saying yes to Amex, they unlock access to our loyal Cardmembers who are higher spending than other credit card users, and actively seek out businesses where they can use their Amex Card.”
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