46% of SMBs Would Pay for More Payment Control

Small businesses may be more ready for payment change than their habits suggest.

That is the hopeful read from “Ready for Change: Why Nearly Half of SMBs Want to Ditch Cash and Checks,” a PYMNTS Intelligence report produced in collaboration with Mastercard.

The report finds that many small and medium-sized businesses still rely heavily on cash and checks, but not because they reject digital payments.

In many cases, cash and checks remain embedded in daily operations because they feel immediate, familiar and easy to reconcile.

The opportunity now is to make business credit cards and digital tools work more like the payment methods SMBs already trust, while adding better control, protection and visibility.

The report is based on a survey of 412 owners, founders, vice presidents and executive directors of U.S. SMBs. It examines how businesses pay vendors and suppliers, how much they rely on legacy payment methods and what would make business credit cards more useful.

Three findings point to a market that is ready to move, but still needs practical reasons to change:

45% of SMBs say they are very or extremely interested in reducing their reliance on cash. That includes firms that already feel the operational burden of cash handling, tracking and deposits.

68% of Gen Z business owners and operators want to reduce their dependence on cash, even though Gen Z-run firms make 52% of their business payments in cash.

46% of SMBs would be willing to pay for a business credit card feature that lets them adjust payment windows based on when money is available.

The encouraging part is that SMBs appear to know what they need. They are not asking for complexity. They are asking for tools that help them stretch cash flow, make supplier payments easier and create a clearer record of where money went.

That makes flexibility the center of the story. Across different types of SMBs, payment timing stands out. Businesses want the ability to adjust payment windows, make purchases in installments and get longer payment terms.

Cards also have a practical advantage when something goes wrong. The report finds that 63% of SMBs say business credit cards are the most suitable method for disputing a payment and getting money back. That is a simple message for issuers: Protection is not an abstract selling point. It is a daily business need.

Still, adoption will not come from digital-only models. SMBs want technology, but many also want a person nearby when the process gets complicated. The top preferred channel for applying for and managing a business card is a self-serve digital application, cited by 23% of SMBs.

Live chat and human phone support follow closely, both at about 18%. Cash-heavy firms are even more likely to prefer phone or branch support.

That blend may be the real path forward. SMBs do not need to abandon the way they operate overnight. They need digital products that respect how their businesses work today.

There is real demand among SMBs for better payment tools. The task is to lower the friction, explain the value clearly and build products that feel less like a replacement for cash and more like an upgrade to the business itself.

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.