Startups are driving new payment technology. Are you keeping up?
We all know that consumers today are avid users of technology, with 80 per cent now online and 60 per cent using smartphones. It’s unsurprising then, that consumer appetite for new payment methods is increasing, but did you know that startup owners are leading the way in responding to this trend by incorporating popular technology into the payment methods they offer?
We recently undertook some research into small businesses which found that small to medium enterprises (SMEs) under three years old are much more likely to be tech-savvy than older businesses. They are reacting to the changing attitude of consumers about how they want to pay for goods.
Online retail is booming
Online retail has reportedly seen its fastest growth in 13 years and startups are responding to this by establishing and expanding their online platform to match the public’s shopping habits. The research shows that startups are actually ahead of the curve in e-commerce, with almost two thirds (58 per cent) offering it as a sales channel compared to less than half (46 per cent) of SMEs in general.
Additionally, one in two (50 per cent) startups are trading using online and mobile wallets, compared to just 36 per cent of business that are over three years old. This number rises to 68 per cent when looking at card-accepting startups, suggesting that businesses that accept credit and debit card payments are most likely to adopt other innovative payment methods.