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Small businesses need more credit card processing support

June 10, 2014

According to one recent report, small and medium-sized businesses are lagging desperately far behind their larger counterparts in regards to e-commerce sales rates.

According to one recent report, small and medium-sized businesses are lagging desperately far behind their larger counterparts (like Amazon and Walmart) in regards to e-commerce sales rates. The reason? Small businesses haven’t introduced nearly as many online credit card processing pages as they need to, on average.

For instance, Mastercard recently conducted a study investigating how many businesses are able to sell their products via online point of sale pages that accept credit card and debit card payments. The results they found were incredibly surprising: while most businesses of all sizes have some form of online presence currently, only a small percentage of them have the online or mobile credit card payment processing equipment needed to sell their products or services at their own websites, according to Forbes.

“The shocking metric we found was that 90 percent of the merchants we surveyed have some kind of presence on the internet,” Theodore Iacobuzio, vice president of Global Insights for MasterCard, told the news outlet. “But even when you factor first world developed economies like Canada and Germany, only 20 percent can accept electronic payment through their web site.” 

As an example, Iacobuzio told a story about his daughter – one that stresses the importance of online credit card payment processing equipment. He asked the young woman where she and her friends most often order pizza. She told him that they go to Domino’s – not because of the quality, but because that company allows them to place their orders online. 

Even Walmart is looking to expand its grasp on e-commerce
Small businesses aren’t the only ones that need to invest more money into their e-commerce offerings: even Walmart is focusing on doing so. A recent Associated Press report detailed how CEO Doug McMillion is currently focused on expanding the services the company offers online, as he feels that being at the “forefront” of e-commerce now will help his company to achieve greater profits in the future. 

“Our purpose of saving people money will always be relevant, but we’ll do it in new ways,” McMillion told the Associated Press. “We need to be at the forefront of innovation and technology.”

For instance, McMillion wants to bring a delivery service that Walmart already offers in the U.K. to many other countries, according to the report. Customers in that location can currently order groceries from Walmart online, then pick up the ordered products at one of many different “pick-up” points offered by the retailer. 

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