Boston, May 13, 2021 –As the needs of small-business customers evolve, bank product portfolios and processes must also evolve to keep up. Further, a growing comfort with technology and financial applications within their personal lives is driving small-business expectations for similar user experiences and capabilities to power their business banking. One such expectation is for faster and more digitized payments. While the COVID-19 pandemic has increased the need for digitalization in all aspects of banking, the gradual shift away from paper checks to digital payments began long before the onset of the pandemic.

This Impact Report explores small businesses’ growing shift toward digital payments and the key drivers for doing so. It examines their perceived benefits and hurdles for change, as well as what banks should do to assist in their transition. This report, commissioned by Deluxe and independently produced by Aite Group, is based primarily on the results of a February 2021 Aite Group online survey of 100 U.S.-based small businesses with fewer than 20 employees generating between US$500,000 and US$4.9 million in annual revenue. This report’s content also leverages Aite Group research of banks’ small-business offerings and strategies as well as the author’s extensive knowledge of the market.

This 23-page Impact Report contains 17 figures. Clients of Aite Group’s Wholesale Banking & Payments service can download this report, the corresponding charts, and the Executive Impact Deck.