46% of Small Businesses Would Pay for Better Digital Tools

Small businesses want tools that give them more control over when money moves, how spending gets tracked and what happens when a payment goes wrong.

The PYMNTS Intelligence report “Ready for Change: Why Nearly Half of SMBs Want to Ditch Cash and Checks,” a collaboration with Mastercard, found that small- to medium-sized businesses (SMBs) value business credit cards most when they solve practical operating problems. Based on a survey of 412 SMBs in the United States, the report revealed that digital access, flexible payment timing, fraud protection and fast approval all rank ahead of traditional rewards.

The data suggested that many SMB owners view a credit card less like a piece of plastic and more like a financial control panel. They want to see what is happening, adjust when payments come due and protect the business when a transaction goes wrong.

Key findings:

The share of SMBs that would pay for access to digital tools was 46%, making it the most desired paid card feature in the survey.

The share of SMBs that would pay for the ability to adjust payment windows based on when the business has money available was 45.8%.

The share of SMBs that said credit cards are the most suitable payment method for disputing a transaction and getting money back was 63.1%.

Fraud and cyber protection also ranked high, with 43.3% of SMBs willing to pay for it. Another 42.9% would pay for business experiences, a category that can include networking, education, and connections to suppliers or partners. Fast approval appealed to 41.9%, while 40.2% valued the ability to split purchases into installments.

The priorities vary by industry and company size. Construction firms tend to favor flexible credit and speed. Retail businesses show greater interest in integrated tools and business experiences. Professional services firms place more emphasis on security and efficiency. Large SMBs often want greater control and visibility, while smaller firms still need easier access and more guidance.

The service experience also plays a role. Self-service digital applications ranked first overall, but many small, rural and cash-reliant businesses still prefer live chat, phone support or help from a branch employee. The strongest model may therefore combine a simple digital process with ready access to a person.

For banks, issuers and FinTech providers, the opportunity is positive and practical. SMBs are not asking for novelty. They are asking for products that help them manage cash flow, reduce risk and run the business with greater confidence.

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.