Small and Medium-Sized Businesses are Begging for a Better Way to Pay

  Small and Medium-Sized Businesses are Begging for a Better Way to Pay

  New MineralTree survey finds SMBs still make majority of their payments by
                    paper check in a digital, mobile world

Business Wire

LAS VEGAS & NEW ORLEANS -- October 29, 2013

The payment market is exploding, with businesses and investors throwing
billions of dollars into payment innovation. As electronic and mobile payments
transform the industry, why are most businesses still left paying with paper
checks?

A new survey of more than three hundred small and medium-sized businesses
released today by MineralTree, the SMB payments company, and Bredin, the SMB
market research experts, found that for most businesses, most payments are
still made by paper check.

“It seems really hard to believe that checks are still the standard of
payments, but this result is also supported by the most recently published
Federal Reserve Payments Study^1. The study shows that, in ten years, the
number of paper checks written by businesses has gone up by an amazing fifty
three percent,” said BC Krishna, President and CEO of MineralTree. “That’s
shocking, considering the amount of money being poured into payments
innovation.”

U.S. businesses now issue nearly ten billion checks annually, spending between
ten billion and twenty billion dollars on check issuance alone. And while
businesses of all sizes are stuck paying on paper, SMBs are the ones stuck
without alternatives.

“SMBs want a better way to pay,” said Stu Richards, CEO of Bredin. “This new
survey sheds important light on what’s holding them back; they can’t find a
solution that meets their payment needs.”

The survey released today found that nearly seventy percent of small and
medium businesses want to eliminate check writing altogether. And for SMBs
that use accounting systems like Great Plains^2, NetSuite^3, and QuickBooks^4,
the number is even higher: a nearly unanimous eighty nine percent.

“SMBs want to chuck their checkbooks, but their trusted business partners have
nothing effective to offer,” said Krishna. “Banks are key partners to SMBs,
and have the clear advantage – with built-up trust and arms-reach access to
customers – but today, very few are offering SMBs viable electronic payment
solutions. Today’s online bill pay offerings are not the answer – they just
don’t meet business needs.”

While SMBs are anxious to move payments online, they shouldn’t do it at the
expense of efficiency, simplicity and risk. SMBs need a payments solution that
provides:

  *Two-way synchronization with major accounting systems
  *Workflow management to provide effective payment controls
  *Protection against online account takeover, employee theft, and other
    fraud risks

“It’s baffling that despite all of the money being invested in the payments,
the cry for help from SMBs continues to go unheeded,” said Krishna. “Banks
have a huge opportunity to offer solutions to their clients that make their
payment tasks simpler, more secure, and bring them forward into the 21^st
century.”

Banks interested in seeing how these survey findings compare to the
opportunity and demand within their own SMB customer base can click here to
request an assessment. For more findings and analysis from the 2013 small and
mid-sized business banking survey, download this market brief:
www.mineraltree.com/sbb-2013.

About MineralTree, Inc.

Based in Cambridge, MA, MineralTree provides a simple, secure online business
bill pay platform that helps small and medium businesses put an end to the
archaic process of writing paper checks to make payments. Offered through
their bank partners, the company’s award-winning business bill pay solution
allows SMBs to save time making payments while enabling banks to drive
revenue, customer satisfaction and differentiation in small business payments.
For more information, please visit http://www.mineraltree.com

About Bredin

Bredin has been helping leading companies develop profitable, long-term
relationships with SMBs since 1991. Bredin provides insight into SMB needs and
concerns through originalmarket researchandacquisition and retention
programsto achieve our clients' marketing goals. Learn more at
www.bredin.com.

^1 The 2010 Federal Reserve Payments Study Noncash Payment Trends in the
United States: 2006 – 2009

^2 Great Plainsis a registeredtrademarkofGreat Plains SoftwareInc.

^3 NetSuite is a registered trademark of NetSuite, Inc.

^4 QuickBooks is a registered trademark of Intuit, Inc.

Contact:

Corporate Ink Public Relations
Greg Hakim, 617-969-9192
ghakim@corporateink.com
 
Press spacebar to pause and continue. Press esc to stop.