Why Tailoring Payment Processing Solutions to Support Rural and Small-Town Businesses is Just Good BusinessFinancial institutions have avoided - or failed - to offer sustainable services to support rural and small-town businesses. However, overlooking this market is a gross oversight as it presents an enormous and largely untapped opportunity to create new jobs and generate economic development.
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Small and rural towns are the backbone of America and are essential to the country'seconomic growth. In 2020,46 millionU.S. residents were living in rural areas, making up 14% of the U.S. population.
These areas are home to many of the nation's32.5 millionsmall businesses, which employ 46.8% of the private workforce.Small businessesare the lifeblood of theirlocal economiesand the engine that helps drive the U.S. economy. Yet, many of these businesses are neglected or under-supported when it comes to accessing resources to help them succeed.
This is particularly true when it comes tomerchant services. Small towns are often ignored by major players inpayment processing, as big companies focus on densely populated metropolitan areas. Neglected small business owners are therefore forced to enter unfavorable contracts and saddled with technology that is not well-suited to them or their needs.
With small business comprising99.9% of all U.S. businesses, there is a critical need for payment processing solutions tailored to small-town businesses. As the CEO of a payment processing company working to serve small businesses in small towns andruralareas, it is clear there is a market gap here that needs to be filled. To fill this gap and help businesses thrive,payment processing solutionsshould be tailored to small businesses. That means solutions that provide complete transparency, that are economical, customizable and easy to use — designed to drive growth and provide a community presence.
Completely transparent
In a perfect world, allpayment processorswould list fees and costs on their websites to make it easy for small businesses to select a provider that best meets their needs and budget. Unfortunately, that's not the way most major players do it.
Instead, payment processing fees are just plain confusing and hard to understand. That's a major headache for small business owners who don't have the time or in-house CFOs to help them make sense of complex contracts and rapidly changing fees.
This complexity often results in small business owners getting themselves into programs they don't fully understand and bills with surprising payment processing fees that are higher than expected.
The small business market needs payment processing solutions that are easy for small business owners to navigate and understand. That requires a fair andtransparent fee platformthat eliminates unpredictable fees and allows small businesses to take control of credit card processing.
In other words, acredit card processingsolution provider breaks down fees — line by line — and shows a comparison table detailing how fees stack up against the competition.
Related:Say Hello to the Next Business Hub: Small Towns
Economical and easy to use
Today's small business owner is looking for cost-effective payment solutions to help drive business forward and make their lives easier. When it comes to payment processing technology, business owners want efficiency at a reasonable cost and don't want to read an encyclopedia on how to use it.
They also don't want to be required to purchase costlypoint of sale (POS)stations which require monthly software subscriptions, and they don't want payment technology with tons of features that they never use even though they are paying for them.
A single, comprehensive provider that can reduce complexity, simplify and consolidate solutions would be a perfect fit for small businesses. We're talking about an integrated payment processing technology to consolidate all payment processing functions under a single platform, making the payment processing experience faster, simpler and more cost-effective. This technology should also include advanced analytics and convenient data-driven insights enabling owners to streamline business processes.
Equally important are solutions to savesmall business ownersmoney, allowing them to realize more profit and reinvest in their businesses. ACash Discount Program (CDP)is a budget-friendly payment processing option allowing owners to pay a low, flat monthly subscription for unlimited credit card processing that eliminates up to 100% of monthly processing fees, pain points of variable fees and inconsistency.
Related:5 Steps You Can Take to Start a Small Town Business
Drive growth
In today'sdigital-first environment, it is essential for small businesses to embed payment processing technology into operations to stay relevant and competitive.
This technology, which provides the ability to offer multiple payment acceptance options, including mobile payments to convenience-minded consumers, is vital for every small business. By providing a range of payment options, small business owners are able to attract more customers and significantlyincrease sales volume.
Another way this technology can help drive continued growth is through aCustomer Data Platform (CDP). A CDP builds the cost of processing into pricing so small businesses can maintain the same profit margin on every sale regardless of payment type.
Related:Lessons In Entrepreneurship From a Small Town Startup
Provide a community presence
When it comes to sales and service of processing solutions, most companies don't have boots on the ground in small and rural towns. Instead, solution providers rely on remote sales and support to service small-town customers. The fact is, these locals need and deserve high levels of service and engagement just as much as businesses located in major metro areas.
To better serve businesses insmall and rural markets, payment processing providers should build out customer service and sales capabilities by hiring agents in these communities. This allows providers to conduct sales outreach on a personal level to build relationships withsmall business ownersand ensures that a representative is always close by to help with installations and any issues in person.
Access to resources is vital forsmall businesses in small townsand rural areas to succeed. So, overlooking these areas is just bad business. Closing the payment processing market gap that currently exists in small and rural towns will require merchant services and payment processing technology tailored to small businesses.Supporting and elevating small businesseswith these services and technology helps stimulate local economies and creates needed employment opportunities. That's just good business.
