45% of SMBs Want to Reduce Cash Use

A PYMNTS Intelligence report, released in February 2026, found that nearly half (45%) of small and medium-sized businesses (SMBs) in the U.S. are eager to reduce their reliance on cash and checks. The study surveyed 412 SMB leaders and discovered that while 84% of businesses with annual revenue of at least $1 million use business credit cards, only 37% of those earning $150,000 or less do. This 47-point gap indicates an opportunity for banks and financial technology providers to tailor their offerings to smaller companies.

Costs and fees associated with cards and digital technology are the most common barriers to reducing cash use, affecting 25.3% of SMBs. Another 18.8% cite supplier surcharges for card payments. To address these concerns, providers should offer clear pricing and illustrate the potential cost savings of switching to a card system. SMB owners can then weigh these expenses against the time they currently spend managing cash and recording payments.

Interest in reducing cash use is already evident, with 55% of businesses highly interested in transitioning away from cash. However, providers must demonstrate how a card fits their specific operations. Nearly 46% of SMBs would pay to adjust payment windows based on their cash flow, and 40% would pay for installment options on purchases.

These findings suggest that flexible payment schedules could help coordinate supplier payments with incoming revenue, acting as a bridge between the supplier's deadline and the customer's payment.

Additionally, 14.3% of businesses prefer a digital application for managing their financial products, while 41% of those who don't use cash would opt for this convenience. Providers should offer live support during the application process and ensure easy access to assistance when issues arise. For smaller firms, this guidance can make the transition to a new financial product smoother and more accessible.

Furthermore, 63.1% of SMBs consider credit cards the most suitable payment method for disputing transactions and receiving refunds, and 51.3% favor cards for quickly paying suppliers. Around 46% would pay for access to digital tools. These insights suggest that banks and FinTechs should focus on demonstrating the benefits of using a card to protect payments, manage spending, and streamline daily tasks.