For many small businesses, the move away from cash will depend less on digital enthusiasm than on whether new payment tools can feel as simple, immediate and reliable as cash itself.
That is the larger story inside “Ready for Change: Why Nearly Half of SMBs Want to Ditch Cash and Checks,” a PYMNTS Intelligence report produced in collaboration with Mastercard. The study, based on a survey of 412 U.S. small and medium-sized business owners and executives, found that many SMBs want to reduce their reliance on cash and checks, but their reasons for sticking with legacy payments are practical. Cash and checks remain woven into daily routines, supplier relationships, bookkeeping habits and cash-flow needs.
The report suggests that business cards have room to grow, especially when they are positioned as tools for control, visibility and working capital rather than just payment products.
The most revealing finding may be that cash-heavy firms are not necessarily the least ready to change. In many cases, they are among the most interested in doing so. That creates an opening for banks, card issuers and payments providers, but only if they solve for the reasons cash still works.
Three data points show the divide:
- 45% of SMBs say they are highly interested in reducing their reliance on cash. Interest is even higher among some of the businesses most exposed to the operational headaches of cash, including construction firms, large-city businesses and companies with higher cash reliance.
- 68% of Gen Z business owners and operators want to reduce their dependence on cash. That finding stands out because Gen Z-led firms also make more than half of their business payments in cash. The data points to a gap between how these younger operators run today and how they may prefer to run tomorrow.
- 46% of SMBs would pay for a business credit card that offers digital tools and the ability to adjust payment windows. That suggests many firms value cards most when they help manage cash flow, timing and control, rather than simply offering rewards.
The report also shows why the shift will not look the same across the SMB market. While 6 in 10 SMBs have a business credit card, access varies sharply. Only 22% of Gen Z-led firms, 36% of rural SMBs and 37% of microbusinesses have one. Older and larger firms, meanwhile, remain tied to checks, often because checks fit established invoicing and approval processes.
Advertisement: Scroll to Continue
Cards are strongest where they solve clear business problems. Sixty-three percent of SMBs say cards are the most suitable way to dispute a payment and get money back, while 59% cite cards for making payments without cash on hand.
Those are practical advantages for firms that need protection, liquidity and predictable acceptance.
The challenge for providers is to meet SMBs where they are. Digital self-service appeals to some businesses, but many cash-reliant, rural and smaller firms still want live support. That points to a blended model: fast digital tools, simple onboarding and clear access to human help when the stakes feel higher.
For SMBs, the positive news is that the path away from cash does not require abandoning how they operate. The stronger opportunity is to give them tools that preserve the best parts of cash while adding speed, security and visibility.
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.
