Bank of America Survey Finds SMB Owners Expect IoT, Digital Payments Growth
5-2-2018
America’s small business owners have big expectations for the role of technology in their businesses, according to ETA member Bank of America’s 2018 Small Business Owner Report. The survey, released this week as part of Small Business Week, found that 77 percent of SMB owners see the future of their success dependent on technology.
SMB owners also see their business’ tech-dependent success rooted in emerging payments technology. The survey found that 52 percent of business owners predict that all payments will be digital by 2023, with 1 in 5 forseeing their business accepting cryptocurrency in the same time frame. Almost two thirds of millennials (63 percent) predict that all payments will be digital in five years.
Further, among the 44 percent of entrepreneurs who are using or exploring at least one advanced technology, a significant plurality of 24 percent are using or exploring Internet of Things (IoT) technology. ETA’s Five Payment Trends to Watch in 2018 report predicts that connected smart devices will initiate $150 billion in transactions this year, indicating a growing market for small business owners to capitalize on.
The study also found that 89 percent of SMB owners use their smartphones for business operations, including business management (44 percent), digital banking (41 percent) and digital payments (29 percent). As integrated software solutions, smart and mobile POS devices and omnichannel options continue to expand, reliance smart devices for payments and business management is likely to increase. ETA’s Five Payment Trends to Watch in 2018 report finds that merchants will spend $2.2 billion in 2018, and $2.4 billion in 2019, on POS software alone; analytical tools and loyalty management solutions spending is expected to hit $1.4 billion in 2018.
Access the full report from Bank of America here.
About ETA
The Electronic Transactions Association (ETA) is the world’s leading advocacy and trade association for the payments industry. Our members span the breadth of significant payments and fintech companies, from the largest incumbent players to the emerging disruptors in the U.S. and in more than a dozen countries around the world. ETA members make commerce possible by processing approximately $56.75 trillion annually in purchases and P2P payments worldwide and deploying payments innovation to merchants and consumers.
ETAs membership spans the breadth of the payments industry to include independent sales organizations (ISOs), payments networks, financial institutions, transaction processors, mobile payments products and services, payments technologies, and software providers (ISV) and hardware suppliers. For more information, visit electran.org.
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