Small Businesses Face Customer Loss Due to Payment Friction Issues

A recent survey reveals that 55% of consumers would reconsider shopping at a local business after a negative payment experience, highlighting a significant disconnect between small business owners and customer expectations. While 88% of operators believe their payment systems are adequate, 52% spend over an hour weekly managing payment-related tasks, which detracts from customer engagement and growth. The survey indicates that younger consumers, particularly Gen Z, are less forgiving of poor payment experiences, with over half abandoning purchases due to inconvenience. As small businesses navigate tighter profit margins, addressing payment infrastructure is crucial for retaining customers and ensuring operational efficiency.

Key Details: • 55% of consumers may stop shopping at a local business after one bad payment experience. • 52% of small business owners spend over an hour weekly on payment administration. • 37% of consumers have abandoned a purchase due to inconvenient payment processes. • More than half of Gen Z consumers have left a local purchase due to payment issues. • Only 30% of small businesses were profitable above expectations in 2025.