Visa Finds Stored Credentials Boost Small Business Sales

Watch more: SMBs and Credentials — Fixing Friction Before It Fails You

A payment transaction can easily become a point of failure for small- to medium-sized businesses (SMBs). Payment processing errors and overlooked mistakes are not merely minor inconveniences; they represent tangible financial losses and a direct threat to the sustained success of smaller enterprises.

Jacob Muff, senior director and head of Authorize.net business operations at Visa, underscores the gravity of this issue, telling PYMNTS that companies are “leaving sales on the table.”

During a conversation taking place as part of the Visa Acceptance Solutions series on the “Rise of the Mobile-First Shopper,” Muff pointed out that these errors are frequently not the fault of the consumer but rather stem from the merchant’s own payment infrastructure.

“As a result, shoppers are more than twice as likely to face a payments processing error of some kind at an SMB as compared to those at large merchants,” he said. Roughly 41% of global SMBs reported encountering such errors during a shopper’s most recent retail transaction.

For the consumer, experiencing such friction often translates into voting with their feet — literally.

“That’s just not an opportunity that any SMB wants to face, because returning customers really are what help drive merchants’ success day in and day out,” Muff said.

Beyond overt processing errors, another source of payment-related pain for SMBs lies in the persistent reliance on manual data entry (on the part of consumers) during transactions, a practice that directly contributes to abandoned carts and lost revenue.

“More than one-third of online shoppers manually enter their payment information when purchasing from SMBs. And that does create friction,” Muff told PYMNTS. The laborious processes run counter to the modern consumer’s expectation for swift and frictionless digital experiences, shaped by interactions with larger, more technologically advanced retailers.

Payments Optionality Is Important

Payments optionality is also key, Muff noted.

“More than half of all shoppers say that knowing their preferred payment method and making it available at a small retailer impacts whether they shop there,” Muff said.

Consumers are increasingly drawn to personalized and efficient checkout experiences that remember their details and preferences, which means that SMBs must evolve their payment systems to match these heightened expectations.

Strategic investment in payments infrastructure is no longer optional. Muff argued that SMBs must streamline their payment and checkout processes to overcome payment-related challenges.

While advanced payment tools might have seemed unattainable just a few years ago, they are now within reach for many smaller enterprises. Muff identified several key areas where SMBs should direct their investment, including stored payment credentials, biometrics and buy now, pay later (BNPL) solutions.

The overarching goal is to achieve a frictionless checkout experience, particularly for returning customers. Securely storing consumer credentials and automatically populating them upon a customer’s return is a powerful driver of repeat business.

The financial and technical burden of developing sophisticated payment solutions internally can be prohibitive. Strategic partnerships with third-party solution providers, Visa Acceptance Solutions included, with biometrics and card-on-file functionality, enable SMBs to compete effectively with their larger counterparts.

By storing payment credentials and offering preferred payment methods, SMBs can create a personalized and intuitive digital environment.

As Muff noted: “It does all come down to the efficient experience at the point of sale — no matter whether it’s online or in-store.”