Small businesses, cafes and shops that don’t accept card payments may be losing out on £2bn of Christmas trade, new research reveals.
A study by card machine provider Paymentsense found that almost half (45%) of over 1,000 customers would walk out of small retailers and independent outlets if they could not pay by card.
A further 25% of shoppers would be unlikely to return to the store. The study also revealed that shoppers spend around £135 a month on avearge in small shops, independent restaurants and cafes.
Guy Moreve, head of marketing at Paymentsense, commented: “Contactless card payment is fast becoming the norm, with our research showing that most consumers now use credit and debit cards. Shoppers now expect to use them almost everywhere - both in a traditional or contactless manner.
“As well as the significant revenue loss, our study suggests that smaller retailers and cafes who don’t yet take card or contactless payments, could permanently lose every fourth customer, which would be a particularly difficult blow at this busy time of year.”
Paymentsense found that 80% of those surveyed owned a contactless card, meaning more than £2bn of consumer spending could be lost by small businesses which can’t take cards in the month before Christmas (according to ONS statistics).
More than half (54%) of shoppers in London would leave an independent store, if there was no option to pay by card. Shoppers in Manchester were not far behind with a walkout rate of 50%. The survey also revealed that Londoners spend £230 a month in independent outlets, making their high walkout rate even more costly to local retailers.
For more information, visit: https://www.paymentsense.co.uk/blog/cash-only-smes-risk-christmas-losses/