- Consumers are driving the transition from cash to digital payments
- Small businesses have historically been slow to adopt new payment methods
- New Womply study reveals modest intent for local merchants to add new payments and technology in 2017
The world is changing quickly on Main Street. For small businesses, one of the key indicators of this rapid change is the gradual disappearing act of paper money in favor of digital payments. According to the Federal Reserve’s longitudinal payments study, debit card, credit card, and ACH payments are on the rise while paper checks have been declining for more than a decade.
The data all point to a cashless — or, at least, cash-lite — future, and small businesses are racing to keep pace. Small businesses have traditionally been slow to adopt emerging payment methods like mobile and EMV, with many holding tightly onto antiquated payment methods. Turns out, however, that some small businesses are starting to move into the Digital Age as it relates to payments.
In fact, 1 in 9 small businesses (11%) will accept new payment methods like mobile or Bitcoin in 2017, according to new data from Womply. That’s a key finding from our new survey of thousands of local business owners in all 50 states. The study also reveals general optimism, top worries, political and policy concerns, and intentions (like hiring, expansion, etc.) for American small businesses.
Regarding digital payments and technology adoption, merchant intentions change based on their overall business sentiment and age. Taken as a whole, the report illustrates that general technology adoption is tracking ahead of digital payments adoption for Main Street entrepreneurs, but optimism and Millennial enthusiasm for innovation are likely to drive greater adoption moving forward.
Take a look at the full report below.