Cashfree Payments Set to Drive Small Business Recovery – Tyl by NatWest Reveals

  • Covid-19 , Payments
  • 07.10.2020 11:49 am

Over a quarter, (27%)* of British SMEs have reported that all payments made to their business are already contactless as the UK adjusts to the rapid increase in e-commerce and online transactions, accelerated by the pandemic. 

 

When, if ever, do you think that all payments made to your business will be contactless?

All payments to my business are already contactless

Within the next year

Within the next 3 years

Within the next 5 years

Longer than 5 years

Never

27%

8%

14%

8%

11%

22%

·       Not included Don’t know in this list 

The latest data from Tyl by NatWest in partnership with YouGov revealed that British SMEs have been quick to adapt the way they do business and their payment systems in response to Covid-19. With 65% of businesses registering for Tyl’s services since the start of UK lockdown adopting card payments for the first time, compared to 37% before, and the pace of this change is only expected to increase.

More than a third (36%)* of SME decision makers agree that being able to accept contactless payments will allow them to operate more successfully after the pandemic. This is likely due to the need to adapt to evolving customer demand for contactless payment options, taking online payment, safety in handling cash and speedier transfer of funds. 

 

"Being able to accept contactless payments will allow my business to operate more successfully after the Coronavirus (COVID-19) pandemic"

Strongly agree

17%

Tend to agree

19%

Neither agree nor disagree

44%

Tend to disagree

9%

Strongly disagree

10%

Net: Agree

36%

Net: Disagree

20%

Mike Elliff, CEO, Tyl said: “This latest research clearly demonstrates the role that contactless, mobile and remote payment systems will play in facilitating the economic recovery from Covid-19.

“There’s now a huge consumer demand for contactless payment methods, which is driving small businesses to switch their operating models at considerable speed in order to achieve success.

We hope that by highlighting these challenges we can equip businesses throughout the UK to capitalise on the demand for contactless payment opportunities.”

The survey examined the role of contactless, mobile and remote payments in aiding the economic recovery from Covid-19.

Revenue raiser

31%* of SMEs agreed that their business will lose revenue as a direct consequence if they were not to offer contactless payments due to the pandemic, likely due to consumer concerns around the safety of cash and the shift towards online and mobile payments. 

 

"My business will lose revenue if we don't offer customers the opportunity to make contactless payments due to the Coronavirus"

Strongly agree

14%

Tend to agree

17%

Neither agree nor disagree

37%

Tend to disagree

12%

Strongly disagree

20%

Net: Agree

31%

Net: Disagree

32%

 

With social distancing also reducing capacity in shops, bars, cafes and restaurants, small businesses can no longer restrict payments to the cash desk. Tyl’s portable terminals grants cashiers the freedom to take payments across the entire venue.

Satnam Singh Purewal, owner of Red Lion Bar and Grill and Tyl customer said: “Tyl by NatWest is user friendly and looks great. Our customers expect top customer service and Tyl helps us manage this through simple things like quick card payments to reduce waiting times in the bar. The Portal allows me to track customer trends and I’ve assigned different machines to the bar and the kitchen so I can monitor performance for each area of the business easily.”   

Safety concerns

Finally, the survey suggests that decisions to adopt cashfree payment systems extend beyond a desire to meet consumer demand and retain revenue streams. SME businesses are concerned about the personal health and wellbeing of their employees with almost a quarter (23%)* stating that they do not feel comfortable with their employees or themselves handling cash during the pandemic. 

 

How comfortable, if at all, do you feel about employees in your business, including yourself, handling cash during the Coronavirus (COVID-19) pandemic?

Comfortable

Not comfortable

46%

23%

Support for all payment methods

Whilst the consumer and business trend towards contactless and card payments continues, NatWest continues to support its personal and business customers with cash requirements, as supporters of UK Finance’s Access to Cash Initiative. The bank has become the first in the UK to offer fee-free secure cash home delivery to vulnerable customers, as well as keeping over 95% of the branch network open throughout the pandemic, and backing ATM operator LINK’s 12-month pledge to maintain free-to-use ATMs.

Tyl provides next-day settlement for users, ensuring money is in their bank account the next business day, which has been a crucial factor in assisting businesses with cash flow during the coronavirus pandemic. 
Tyl by NatWest is a new, innovative payments service designed in partnership with UK SMEs to make it easier for small business customers across the country to receive payments in-store, online and over the phone and manage cash flow during COVID-19 and beyond.

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