Recent research indicates that UK SMEs suffer significant financial losses due to outdated payment methods. Tink‘s study reveals that SMEs lose an estimated £6.15 billion in annual sales because of manual bank transfers.
The study pinpoints the inefficiencies of traditional manual bank transfers. With data from 2,000 UK consumers and 500 SME leaders, it demonstrates the negative impact of these archaic systems on sales and customer satisfaction.
Interestingly, consumers favour instant payment methods over manual bank transfers. This shift in consumer behaviour emphasises the need for businesses to adopt modern payment solutions.
Moreover, the study implies that SMEs using manual transfers risk not only decreased sales but also customer attrition. This risk is particularly concerning for the SME sector, which is already grappling with the economic effects of the global pandemic.
Impact of Outdated Payment Methods on SMEs
The transition to instant payment methods is now essential for businesses. Tink‘s research suggests that sticking to outdated payment methods negatively impacts business revenues.
Additionally, the study highlights customer dissatisfaction with manual transfers. Customers now expect convenience and immediacy in transactions, which manual bank transfers cannot deliver. This shift in customer expectations is causing a decline in loyalty for businesses that persist with traditional payment methods.
Given the data, businesses should rethink their payment strategies. By shifting from manual bank transfers to modern payment solutions, businesses can enhance their sales and customer satisfaction.
While the initial switch may require an investment, the long-term benefits of increased sales and customer loyalty make it a worthwhile move for UK SMEs. Recognising the changing landscape and adjusting strategies accordingly is crucial for businesses to stay relevant and competitive.
