Shoppers lose patience with cash-only SMEs after five months

(2 minutes to read)

Small businesses have less than five months from starting up to switch from taking cash only to accepting cards before a shopper’s expectations change.

Latest research has revealed that UK shoppers would continue to visit an SME, small retailer, independent coffee shop or food outlet for an average of 4.6 months before becoming impatient with their cash-only status.

The data, compiled by Paymentsense, also found that consumer patience levels varied regionally.

For example, shoppers in Norwich are willing to wait a little longer (an average of 6.5 months) after their first visit to a business before expecting card payments to be introduced, closely followed by Cardiff.

Birmingham was found to be the most impatient city, with consumers expecting to have a cashless option within just 3.5 months. Those in Manchester are also only prepared to wait 3.6 months.

Interestingly, it is the older shoppers that are the most impatient. Of all the groups questioned, millennials (25-34 years) were the most forgiving, willing to wait 5.1 months on average. Those over 65 were the least, only considering waiting 3.9 months.

Still thinking about if you should join Dolan Accountancy?

Give us a call on 01442 795100 or email jaime.thorpe@dolanaccountancy.com

Email Jaime

SMEs should take note that the research also revealed that not accepting card payments is an instant turn off for some UK consumers. Over half (53%) of respondents would leave a small business immediately if card payments are not available, with 30% reporting they would be less likely to return in future.

Guy Moreve, CMO of Paymentsense, said, “Cash usage in the UK is shrinking at a rapid rate and consumers are now living totally cashless lives. Although it’s important to recognise there’s still a place for cash, it’s difficult to ignore the signals that we’re moving towards the complete digitalisation of money. Our research provides a snapshot of consumer attitudes towards cash-only businesses, but the general trend suggests these expectations are evolving as we get closer to becoming a cashless society. Our latest Future of Payments report also reveals that consumers are already looking ahead towards improved payment systems in the UK, from fingerprint scanning and microchips to voice ID and biometrics.

“This has serious implications for small business owners and startups during the critical first few months of trading. Our research suggests there’s a definite time limit for new businesses to upgrade from cash-only transactions, after which customers may turn to competitors offering more convenient alternatives. Giving consumers the shopping experience they expect is becoming increasingly important to influencing reputation and even trading longevity.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, ContractorUmbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of ContractorUmbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, ContractorUmbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

dav1