Transaction Trends

By Jenn Reichenbacher, SVP Marketing, Payment Processing of PaySafe, co-chair of the ETA Retail Technology Committee.

We’re in unprecedented times right now. Over the past month, Coronavirus, or COVID-19, has literally encompassed the globe, disrupting everyday life with social distancing, temporary business closures and, for many, stand in place or self-quarantine orders. As I write this, over 50% of Americans are in some sort of isolation practice.

While most non-essential big box retailers have temporarily closed their doors, many are seeing online sales on the rise. But, what about the core of U.S. retail: our ‘main street’ businesses? How are they surviving during this surreal time?

According to the U.S. Small Business Administration (SBA), there are over 30.7 million small businesses in the country, which represents 99.9% of all businesses. Small businesses also employ 59.9 million individuals, or nearly half (47.7%) of our private workforce.

Our government passed a relief package of in excess of $2 trillion, with small businesses and their employees as the core recipients of short-term relief. Small businesses can apply now for federal support.

For small brick-and-mortar retailers, COVID-19 may feel like a headwind too big in stature. But there are a myriad of resources and opportunities for small businesses to evolve and potentially position themselves for future growth as a result of the pandemic.

First off, right now we all have to think differently. If you have a business that’s open or deemed essential, are you thinking about promoting contactless payment acceptance (Apple Pay®, Android Pay, etc.) to practice safe social distancing in store? Are you mobilizing your business with online ordering, direct or third-party deliver or curbside pick-up? Are you putting your inventory online and offering an e-commerce experience for your customers?

While all these solutions may seem daunting, especially right now, they’re really not. Let’s tackle each one in turn:

• Contactless payment acceptance. If you’re a retailer in the U.S. with a physical location, there’s a high probability that your existing payment terminal or point-of-sale solution accepts contactless payments already. Don’t know if you’re enabled? Simply contact your merchant service provider and ask, and, if not, get contactless enabled today.
• Is your business a local restaurant, quick service restaurant (QSR), convenience store, liquor outlet (state restrictions apply) or specialty food shop? Offering order ahead and delivery is just a few clicks away.

There are a myriad of quick and easy online applications (apps) that give you the ability to take orders via mobile or online, offer consumer delivery tracking and even allow you to access third party delivery services like Uber Eats, Grubhub and Postmates. It’s not expensive and it doesn’t take a long time and it does offer short-term revenues with the potential of attracting new local customers. And, long-term it’s a smart business decision that expands the footprint of your business.

• Going online. Setting up a website, adding inventory, and accepting payments online. It sounds daunting, but it’s really not. There are a lot of do-it-yourself website builders where you literally create your online store in minutes or at most hours, not days — and without the help of a professional marketer or graphic designer.

You should speak with your merchant service provider to see if they’re offering other incentives to small business operators or if they’re willing to put your account on temporary hold.

Our entire world is turned upside-down right now. Everyone is searching for answers; looking for the situation to stabilize. It’s an uncertain time, but one that could be turned into an opportunity for some business owners.