Banks Lacking in Paperless Payments for SMBs

According to a survey performed by Mineral Tree, Inc. and Brendin, the market is sorely lacking in paperless payments for SMBs, despite huge demand from small and medium sized business owners.

For the average consumer, the paper check is becoming somewhat of a relic. They’re a hassle—used solely by grandparents for birthdays. Yet for some reason, SMBs can’t seem to shake the habit. In fact, paper check payments for SMB’s have increased by a good 53 percent over the past 10 years.

But it’s not the sweet, sweet scent of ink on paper that keeps small and medium sized businesses coming back for more and more checks- it’s a lack of options. While 68 percent of small and medium sized businesses say they’re seeking paperless payments, 75 percent of them are still stuck writing checks.

Banks have come very far in offering consumers the paperless payment systems they need, but they seem confused over how to properly extend this service to businesses. A mere 35 percent of banks have said they feel they’re properly meeting small businesses’ payment needs. Based on the survey, SMBs are looking for a paperless payment solution that will integrate into their existing accounting software, eliminating the need for double entries, and a solution that will provide peace of mind, offering security against fraud and online account takeover.

All is not lost for small and medium sized businesses looking to put down the checkbook for good. With 88 percent of banks citing SMBs as a target of growth over the next few years, innovation seems imminent.