Card Turnover at Small Merchants Up 11 Per Cent

Turnover from card payments at small businesses was up 11 per cent in the first quarter of 2012 compared with the same period in 2011. This is the finding of an analysis of card payments at over 43,000 small, independent businesses by CardSave. The increase in some sectors is particularly marked:  card turnover at taxi companies increased by 95 per cent and at fast food businesses by 85 per cent.

“As the British public increasingly prefers to pay by card, small businesses that accept card payments are seeing the effects on their revenue. For some sectors, such as taxis, card payments are becoming the norm, and we expect to see more taxis adopt card payment solutions over the next year,” explains Clive Kahn, CEO of CardSave.

This belief is backed up by a recent YouGov poll that revealed 62 per cent of people carry £20 or less in cash on them, while 93 per cent carry at least one card. The average card transaction at small merchants in Q1 2012 was £64.13, down five per cent on 2011.

“Consumers feel increasingly comfortable putting smaller transactions on card in situation where previously they would have used cash,” says Kahn.

 

Kahn comments: “In the recent past the option to pay by card was a luxury, but Britain is swiftly moving towards becoming a cashless society and there is now strong customer demand for card payment technologies. Our Small Business Payments Index indicates that business owners with card payment facilities can significantly increase their total business revenue.

“Nearly a quarter of shoppers will walk out of a store if they don’t accept card, and while some will return having withdrawn cash, others will swiftly take their business elsewhere. Small businesses, which are already struggling to maintain their position alongside high street chains need to take cards if they are to remain competitive.” Kahn concludes.

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