PayPal: SMEs that don’t take cards are missing out on £800m

PayPal Here HomeA PayPal survey shows that small businesses that don’t take card payments are missing out on about £800 million of trade every year.

PayPal are currently promoting their PayPal Here product that makes it easy for anyone to take card payments on the go. Personally, I’d say the £800m figure sounds a little bit small. It’s surely way more than that.

The research says that just over a third (36%) of the businesses surveyed currently accept card payments, with cost being the main deterrent for not taking them. 13% of respondents are put off by high monthly usage costs.

Narik Patel at PayPal, says: “One of the challenges small businesses in the UK face is getting paid. Nowadays few consumers are carrying a cheque book with them, or even cash. This means businesses need to offer consumers alternatives, otherwise they risk missing a sale.”

“Many small businesses have not offered card payments in the past because they’ve been put off by high fees and long-term contracts. We wanted to create an affordable ‘pay as you go’ option for them. We’ve been obsessed over every detail of PayPal Here to make sure it’s right for both British businesses and their consumers. Having made our name as a pioneer of online business, it’s now great to be helping businesses maximize face to face sales.”

The PayPal Here solution is, as we’ve said before, rather neat. A £100 handset allows you to take payments with a smartphone or tablet as long as you can get a decent phone signal on usual PayPal terms. There are no monthly subs or the like.

I’m looking forward to seeing the Paypal Here device and team in action down here in Brighton at the weekend when they will be punting out the service. I’ll report back.