August 27 — A significant majority of small business owners would prefer to deal with one vendor for their payment acceptance services; however, according to new research from Mercator Advisory Group, 25 percent of these businesses are still engaging with multiple providers. This adds complexity to the payments process, and business owners are reporting negative effects on their bottom lines.
Multiple payment providers have been shown to drain organizational resources as each vendor brings more logistical and technical issues to the process, but Boston-based BlueSnap is hoping to offer a single integration point.
“We hear from businesses that they constantly need to integrate to different payment solutions to address their growing needs either because their customers want different payment methods or they are expanding internationally,” said Ralph Dangelmaier, CEO of BlueSnap. “As a result, their valuable development resources are spent developing new integrations and managing their payment solution cluster. Also, they spend too much time reconciling different accounts using inconsistent reporting formats and data points. The all-in-one payment platform increases sales and reduces costs through one easy integration, bringing more value for domestic and global clients.”
Through it’s integrated payments platform, BlueSnap provides business owners with:
- One contract, one account, one integration, one payout and one report to simplify payment management
- Payment gateway and connection to multiple global acquiring banks for increased conversions and lower foreign exchange fees
- Support for online and mobile sales, subscriptions, invoices, marketplaces or virtual terminal
- Ability to offer a variety of payment methods, global cards, e-wallets or bank payment
- Fraud detection and chargeback management tools
“For the last three years or our business surveys, three-quarters of respondents say that they would rather have a single payments provider,” said Raymond Pucci, director of the merchant services practice at Mercator. “In particular, e-commerce merchants state that they have special payment solutions needs and want to reduce the complexity of dealing with multiple vendors. Additionally, in direct interviews we have conducted, businesses of all sizes across vertical markets express their preference for a single vendor platform.”
The survey data referenced are from Mercator’s third annual 2018 Small Business Payments and Banking Survey. This was a web-based survey of 2,047 U.S. small businesses regarding their use of payments and banking services.