Small businesses aren’t just shopping for new ways to pay. They’re looking for tools that give them greater control over timing, visibility and day-to-day cash flow. That is the more interesting takeaway in “Ready for Change: Why Nearly Half of SMBs Want to Ditch Cash and Checks,” which makes clear that the real opportunity in SMB finance isn’t simply replacing old habits but solving practical operating problems.
The PYMNTS Intelligence report, produced with Mastercard, is based on a survey of 412 U.S. small- to medium-sized business (SMB) owners, founders, vice presidents and executive directors.
While the headline finding centers on reducing reliance on cash and checks, the broader message is that SMBs are asking for financial products that fit how they actually run their businesses. That includes smoother cash-flow management, better dispute protections, flexible repayment options and a blend of digital service with human support when needed.
Rather than framing SMBs as reluctant to modernize, the data help form a more constructive picture. Many businesses appear ready to adopt new tools when those tools address immediate needs such as paying suppliers quickly, covering expenses before cash comes in and keeping a clearer handle on spending. In that sense, the report is less about payment preference than about operational confidence.
- Sixty-three percent of SMBs said business credit cards are the most suitable way to dispute a payment and get money back. Another 59% said cards are the best way to make a payment without having cash on hand at that moment. That points to a strong appetite for protection and flexibility, especially when cash flow is tight or a transaction goes wrong.
- Meanwhile, 46% said they would be willing to pay for a business credit card that lets them adjust payment windows based on when they have money. Another 43.3% said they would pay for the ability to make purchases in installments, and 42.9% would pay for longer payment windows. The pattern is clear. SMBs are placing a premium on tools that help them manage timing, not just spend.
- Among SMB leaders surveyed, 45.8% said they would pay for access to business experiences, while 33.1% said they would pay for digital tools. That suggests smaller companies do not see financial products as only transactional. They also value connections, support and tools that may help them grow, learn and operate more efficiently.
The report also showed that channel preference matters almost as much as product design. Overall, 23% of SMBs prefer a self-serve digital application for a business card, while 18% prefer live chat and another 18% prefer a human phone representative.
Looking for the Digital Path
Cash-reliant firms are less likely to want a purely digital path, while businesses with no cash reliance are much more comfortable handling things online. That finding gives issuers and banks a practical roadmap. Digital convenience matters, but so does easy access to real people.
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There are other encouraging signals. Only 17.6% of SMBs said they saw no barriers to reducing cash usage, and the biggest obstacles were largely practical, such as cost and fees, business type and supplier surcharges. Those are product and service challenges, not dead ends. For providers that can lower friction, improve onboarding and deliver more cash-flow control, the report suggests a sizable opening to build stronger relationships with SMBs that are ready for something better.
At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.
