46% of SMBs Would Pay for Greater Payment Control as Cash Flow Pressure Drives Digital Shift
46% of SMBs Would Pay for Greater Payment Control as Cash Flow Pressure Drives Digital Shift
Small and medium-sized businesses are showing strong interest in better payment flexibility, even while many still rely on cash and checks. A PYMNTS Intelligence report, produced with Mastercard, found that 46% of SMBs would pay for a business credit card feature that lets them adjust payment windows based on available cash flow.
SMBs Want Payment Tools That Match Real Business Needs
The report shows that SMBs are not avoiding digital payments because they dislike technology. Instead, many businesses keep using cash and checks because these methods feel simple, familiar, and easy to track during daily operations.
For many small firms, timing matters more than anything. Supplier bills, payroll, inventory costs, and customer payments do not always arrive in a neat order. Because of this, SMBs want payment tools that help them manage when money goes out and when cash is available.
Cash and Checks Still Play a Big Role
According to PYMNTS, many SMBs remain tied to legacy payment methods. Cash and checks are still common because they offer a sense of control. Business owners can see the payment, record it quickly, and feel confident that the transaction is complete.
However, these older methods can also create problems. Cash handling takes time. Checks can slow down reconciliation. Manual tracking can lead to errors. As businesses grow, these small issues can become bigger financial headaches.
Nearly Half of SMBs Are Ready to Reduce Cash Use
The report found that 45% of SMBs are very or extremely interested in reducing their reliance on cash. This shows that many businesses are open to change, but they need better reasons to switch.
In other words, SMBs are not simply asking for digital tools. They are asking for tools that make business payments easier, safer, and more flexible.
Gen Z Business Owners Show Strong Demand for Change
One of the most interesting findings involves Gen Z business owners and operators. PYMNTS reported that 68% of Gen Z SMB leaders want to reduce their dependence on cash, even though Gen Z-run firms make 52% of their business payments in cash.
This gap suggests that younger business leaders may want modern payment systems, but their daily operations still push them toward cash. The opportunity for banks, card issuers, and fintech companies is clear: build products that fit how SMBs actually work.
Flexible Payment Windows Could Become a Key Feature
The strongest message from the report is that SMBs want more control over payment timing. A feature that lets businesses adjust payment windows based on available funds could help owners manage cash flow with less stress.
This type of flexibility may be especially useful for businesses with seasonal sales, delayed customer payments, or changing inventory needs. Instead of being locked into rigid payment schedules, SMBs could better match payments with revenue.
Business Credit Cards Offer Protection and Visibility
PYMNTS also found that 63% of SMBs see business credit cards as the most suitable method for disputing payments and getting money back.
That matters because payment protection is not just a bonus feature. For SMBs, it can protect working capital, reduce losses, and improve confidence when dealing with suppliers or vendors.
Digital Tools Still Need Human Support
While many SMBs want digital payment options, the report shows that support still matters. PYMNTS said 23% of SMBs prefer a self-serve digital application for applying for and managing business cards, while live chat and phone support each follow at about 18%.
This means the future of SMB payments may not be fully digital or fully traditional. Instead, the winning model may combine easy online tools with real human help when business owners need it.
What This Means for Banks and Fintech Companies
For financial providers, the message is simple: SMBs want practical value. They do not want complicated products filled with features they do not understand. They want tools that help them pay suppliers, manage cash flow, track spending, and protect payments.
Banks, card networks, and fintech platforms that can explain these benefits clearly may have a strong chance to win SMB customers. The best products will likely feel less like a replacement for cash and more like an upgrade to the way small businesses already operate.
Conclusion
The PYMNTS report points to a major shift in SMB payments. Cash and checks are still important, but many businesses are ready for better options. With 46% of SMBs willing to pay for more payment control, flexible business credit card features could become a powerful tool for improving cash flow and daily financial management.
For SMBs, the future of payments is not only about going digital. It is about gaining control, reducing friction, improving protection, and making every payment fit the real rhythm of business.
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