LAS VEGAS & NEW ORLEANS--(EON: Enhanced Online News)--The payment market is exploding, with businesses and investors throwing billions of dollars into payment innovation. As electronic and mobile payments transform the industry, why are most businesses still left paying with paper checks?
“It’s baffling that despite all of the money being invested in the payments, the cry for help from SMBs continues to go unheeded”
A new survey of more than three hundred small and medium-sized businesses released today by MineralTree, the SMB payments company, and Bredin, the SMB market research experts, found that for most businesses, most payments are still made by paper check.
“It seems really hard to believe that checks are still the standard of payments, but this result is also supported by the most recently published Federal Reserve Payments Study1. The study shows that, in ten years, the number of paper checks written by businesses has gone up by an amazing fifty three percent,” said BC Krishna, President and CEO of MineralTree. “That’s shocking, considering the amount of money being poured into payments innovation.”
U.S. businesses now issue nearly ten billion checks annually, spending between ten billion and twenty billion dollars on check issuance alone. And while businesses of all sizes are stuck paying on paper, SMBs are the ones stuck without alternatives.
“SMBs want a better way to pay,” said Stu Richards, CEO of Bredin. “This new survey sheds important light on what’s holding them back; they can’t find a solution that meets their payment needs.”
The survey released today found that nearly seventy percent of small and medium businesses want to eliminate check writing altogether. And for SMBs that use accounting systems like Great Plains2, NetSuite3, and QuickBooks4, the number is even higher: a nearly unanimous eighty nine percent.
“SMBs want to chuck their checkbooks, but their trusted business partners have nothing effective to offer,” said Krishna. “Banks are key partners to SMBs, and have the clear advantage – with built-up trust and arms-reach access to customers – but today, very few are offering SMBs viable electronic payment solutions. Today’s online bill pay offerings are not the answer – they just don’t meet business needs.”
While SMBs are anxious to move payments online, they shouldn’t do it at the expense of efficiency, simplicity and risk. SMBs need a payments solution that provides:
- Two-way synchronization with major accounting systems
- Workflow management to provide effective payment controls
- Protection against online account takeover, employee theft, and other fraud risks
“It’s baffling that despite all of the money being invested in the payments, the cry for help from SMBs continues to go unheeded,” said Krishna. “Banks have a huge opportunity to offer solutions to their clients that make their payment tasks simpler, more secure, and bring them forward into the 21st century.”
Banks interested in seeing how these survey findings compare to the opportunity and demand within their own SMB customer base can click here to request an assessment. For more findings and analysis from the 2013 small and mid-sized business banking survey, download this market brief: www.mineraltree.com/sbb-2013.
About MineralTree, Inc.
Based in Cambridge, MA, MineralTree provides a simple, secure online business bill pay platform that helps small and medium businesses put an end to the archaic process of writing paper checks to make payments. Offered through their bank partners, the company’s award-winning business bill pay solution allows SMBs to save time making payments while enabling banks to drive revenue, customer satisfaction and differentiation in small business payments. For more information, please visit http://www.mineraltree.com
Bredin has been helping leading companies develop profitable, long-term relationships with SMBs since 1991. Bredin provides insight into SMB needs and concerns through original market research and acquisition and retention programs to achieve our clients' marketing goals. Learn more at www.bredin.com.
2 Great Plains is a registered trademark of Great Plains Software Inc.
3 NetSuite is a registered trademark of NetSuite, Inc.
4 QuickBooks is a registered trademark of Intuit, Inc.