Payment
U.S. Small Businesses See Payment Innovation as Critical to Future Growth
Jun 6, 2025
New research reveals that small and medium-sized businesses (SMBs) across the U.S. are betting big on payment technology upgrades to drive growth, improve cash flow, and better protect against fraud. According to a recent survey of 1,000 SMBs across industries ranging from retail and food service to healthcare and construction, 96% of those accepting in-person transactions plan to upgrade their payments technology within the next 12 months.

Despite broader economic uncertainty, optimism runs high: 92% of SMBs feel confident about their future, with more than half expecting revenues to grow by at least 20% over the coming year. A strong majority — 82% — view delivering a seamless payment experience as essential to their business strategy, with even higher levels of emphasis among beauty, retail, and food service operators.

To support evolving consumer expectations, 52% of businesses say they’ll update their point-of-sale (POS) systems to support mobile and contactless payments in the next year, while nearly half plan to add mobile POS terminals. Another 47% will integrate their payment systems with other core business software, underscoring a broader push toward operational unification. Today, 82% of SMBs already link their payment systems with accounting software, 72% with customer relationship tools, and 66% with inventory management platforms.

Security remains a top concern. More than three-quarters of SMBs report being worried about payment fraud, and nearly half plan to boost security measures in the year ahead. This concern is paired with growing interest in technologies like real-time payments (46%) and "tap on phone" mobile acceptance (41%), which convert smartphones or tablets into contactless payment terminals.

Artificial intelligence is also gaining traction. A strong majority of SMBs — 75% — believe AI can streamline payment processing, while 79% say it could be a powerful tool for fraud prevention.

E-commerce continues to expand among smaller businesses. While 30% of SMBs do not currently sell online, two-thirds of these intend to launch e-commerce operations within the next year. Among those already selling online, 90% plan to expand their offerings.

Cash flow remains a challenge. About one-third of SMBs cite delayed payment settlements as a major disruptor, particularly for businesses with over 100 employees. These issues have real consequences: 42% of respondents say they’ve had to delay payments to vendors or staff due to cash flow constraints.

Overall, most SMBs are satisfied with their payment service providers, but frustrations remain. Sixty percent report experiencing processing issues at least once a month, with high interchange fees and chargebacks topping the list of concerns.

The findings underscore that for America’s SMBs, payments are no longer a back-office function — they’re a key driver of customer experience, operational efficiency, and financial resilience. As consumer behaviors evolve and new technologies emerge, businesses are increasingly turning to innovation not just to survive, but to thrive.

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