Paper checks are still the mainstay in SMB payments, both for accepting funds and paying bills, according to Aite Group’s survey of 1,000 U.S. small businesses conducted last year. The firm defines SMBs as those generating between $100,000 and $20 million in annual revenue. In the breakdown of all SMB payments, paper checks account for 44% of payments, with ACH electronic transfers at 30%, cards at 17%, wires at 6% and cash coming in at 3%.
SMBs show a strong willingness to adopt digital payments where possible, Aite’s survey suggests. Forty percent of respondents said they would use mobile payments more often if they could see all bills and supporting documents on a smartphone or tablet, or be able to scan bills via a mobile app. About a third of SMBs said they would use mobile payments if they could receive a text or notification on a dashboard when a bill needs approval for payment.