WePay's Small Business Payments Survey Data Suggests the Death of Checks

Palo Alto, Calif. -- 06/20/13
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Results Provide Wake Up Call to Small Businesses to Start Embracing Credit Cards or Risk Losing Customers, Especially Millennials

WePay, the surprisingly simple way for small businesses to accept credit cards, today announced the results of its first-annual Small Business Payments Survey. In partnership with Harris Interactive and Ipsos, WePay sought to understand the payment preferences of consumers and small business owners and found a quickly growing divide. The results demonstrate the increasing decline of checks, with 52% of the millennial generation of 18-34 year olds indicating that they never use checks as a form of payment. By contrast, WePay found that 72% of small business owners prefer to accept cash or checks as a form of payment over credit cards.

Not only do these results concisely demonstrate the divergent attitudes of millennial consumers and small business owners, but as credit cards become the predominant form of payment in the U.S., it's clear that checks will soon become obsolete. In addition to the striking decline of checks, WePay's survey also found:

WePay Small Business Payment Survey 2013 Results:

- Overall, 64% of consumers write fewer than three checks per month, up from 35% three years ago.

- On a regular basis, 58% of small businesses are asked by their customers to accept credit cards.

- On average, 27% of small business owners are receiving fewer checks today than compared to three years ago.

- Consumers that will only shop at businesses that take multiple forms of payment (categorized by age) are as follows:
69% of consumers 18-34
58% of consumers 35-44
52% of consumers 45-54
48% of consumers 55+

These statistics show a growing trend, from consumers of all ages, that checks are dying. With the rise of online and mobile banking, automated bill pay and online payment providers, the process of carrying around a checkbook and hand writing a check seems provincial. In particular, the trend amongst millennials is a strong signal to small businesses to pay attention to new consumer demands, especially around accepting credit cards.

"I hear daily from small businesses that they see the need to accept credit cards, but have felt that traditional payment providers are difficult to use and don't get them their money fast enough," said Bill Clerico, CEO of WePay. "We wanted to show them that the time to start accepting credit cards is now; it's our ultimate goal at WePay to ensure that small businesses never lose a customer again because their payment options are limited."

To conduct these surveys, WePay worked with third-party market research companies, Ipsos and Harris Interactive, to survey more than 1,000 small business owners and 2,000 consumers. WePay's easy-to-use online payment tools for small businesses include a mobile application, online invoices, on-site checkout buttons, virtual terminal for processing credit cards, as well as an application programming interface (API) for partners. WePay's Veda fraud engine uses social data to assess risk and enables customers to begin processing credit cards in under a minute.

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