Mobile payments can help improve vital cash flow for SMEs.

Bevan & Buckland AccountantsMobile payments can help improve vital cash flow for SMEs.



Mobile payments are now commonplace in many retail outlets and restaurants with a wide range of options from the traditional card reader by the till to the portable card reader used at your table in a restaurant.

With the advent of using your mobile phone for making payments with Apple Pay and Android Pay the options are even more flexible.

So what about the B2B sole trader, SME or tradesman? Their focus is primarily on delivering a great customer experience in terms of the products and services they offer with the payment experience often limited or overlooked.

Why? Invoices are raised with their bank details for BACS payment as their payment terms, with card payments viewed as an extra expense and complex to reconcile. But what if the customer offers a debit or credit card? By not being able to accept or even turning down this payment option if presented, may lead to delayed payment which can stretch cash flow further.

Traditionally small and medium businesses will provide cash, cheque or BACS payment options with many opting for BACS as their preferred option. Credit and debit card transactions often attract transaction fees which is seen a further erosion of margins and the SME may feel obligated to absorb. This does not need to be the case.

My point being, do not assume that a customer will refuse to pay the transaction fee, but by giving them the option they can choose what suits them best. In the world of mobile payments, an increasing number of providers do not charge a set up or monthly fee to the merchant.


A good example of this is iZettle with their new iZettle Reader. Designed to work in conjunction with a Smartphone, this is an inexpensive way to offer a card payment option which is mobile:

Faster payments: The new iZettle Reader accepts contactless and card payments 25% faster than any other mobile credit card reader on the market

No hidden fees: There are no setup, monthly fees or contracts. The only other costs are transaction fees that start at 2.75% and go as low as 1.0%. The more you sell, the less you pay and of course this fee can be transferred to the customer.

All-day power: The new iZettle Reader has all-day battery life – lasting 30% longer than other mobile credit card readers on the market – and a stable Bluetooth connection. No cables. No hassle.

Speeding up Business and Income

Providing a debit or credit card option for payment can provide a business with a negotiation tool for part or stage payments or a more diverse mix of payment options that maybe beneficial to the purchaser and the supplier in winning the order.

The business gets an up-front payment to cover materials for example which takes the strain out of cash-flow. With many sole traders and SMEs addressing their billing and invoicing at the end of a work-day, using a mobile payment solution also empowers them to take payment whilst on premises and avoid further visits.

In essence mobile payments can speed up transactions, reduce strain on cash-flow and provide a greater flexibility when negotiating payment, all for the sake of a small investment (£59.00 +VAT) to buy a card reader.

Good business sense, I think you would agree!

For more information, please click on the image below or contact Antony Worsley at ANYCommunications on 01792 209020.



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