REDWOOD CITY, Calif.,
Nov. 15, 2017 /PRNewswire/
-- WePay, the provider of integrated payments for online
platforms, released new data that shows a majority of US-based
small and medium-sized businesses (SMBs) end the calendar year with
at least one significant payments challenge which severely impacts
their business.
Conducted in partnership with Survata, an independent research
firm, WePay polled more than 500 US-based small business owners and
operators for its second national SMB & Money Survey.
According to the findings, the end-of-year time period is
particularly important for SMB coffers -- business owners and
operators report earning 20% of their annual revenue between
Thanksgiving and December 31. For businesses that sell goods
rather than services, the impact is much greater -- they report
earning 28% of their annual revenue during this time due to more
and higher ticket transactions.
But the concentrated year-end revenue is a double-edged sword,
with many SMBs saying the financial boost is accompanied by
significant payments challenges. Seventy percent report having
experienced at least one severe business issue between Thanksgiving and December
31, 2016. What's more, the most commonly cited pain point
is late payments -- more than 21% of survey respondents say they
grappled with this problem at the end of last year.
The impact of late payments and other end-of-year business
challenges is notable:
- 44% who reported dealing with fraud rated the severity of
impact to themselves and their business as very high -- 9 or 10 on
a 10-point scale, with 10 being the most severe impact
- 40% who reported dealing with chargebacks (a fraudulent or
disputed transaction that resulted in a financial institution
requiring the SMB to cover the loss) reported a 9 or 10 in impact
severity
Many SMBs face payments and accounts receivable challenges
throughout the year, not just at its end. WePay's survey finds late
payments, fraud, and chargebacks are highly prevalent. Almost
two-thirds of respondents say that at least 10% of their customers
do not pay in accordance with their payment terms. Late payments
are also eating into SMB business productivity, with 59% of SMBs
saying they follow up with their customers on late payments at
least two times on average.
Other year-round business and payments challenges persist for
SMBs. Twenty six percent of survey respondents reported losing
money to fraud and/or chargebacks in the past year. Additionally,
for businesses that experienced this particular pain point, the
data showed:
- The median amount lost in the past year was $925
- Twenty two percent of these SMBs reported losing $5,000 or more
- One business (of 515 surveyed) reported fraud loss above
$1 million
"Small businesses are a big boost to the U.S. economy, providing
financial independence, encouraging innovation, and creating
employment opportunities," said Tina
Hsiao, WePay Chief Operating Officer. "But it's clear late
payments and issues around fraud continue to be a serious burden
for these businesses and need to be addressed."
WePay's first SMB & Money Survey, conducted in Spring 2017,
shed new light on the cash flow management and customer payment
fraud issues faced by small businesses.
About WePay
WePay helps online platforms grow revenue with integrated
payments processing. The company has uniquely enabled Constant
Contact, GoFundMe, Meetup, and more than 1,000 other platforms to
incorporate payments without compromising on their user experience
or taking on risk and regulatory exposure. WePay has earned
recognition on the Inc. 500 fastest growing private US
companies list and various Best Places to Work lists. In
October 2017, WePay agreed to be
acquired by JPMorgan Chase & Co (NYSE: JPM). For more
information, visit wepay.com.
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SOURCE WePay