news.cuna.org/articles/Small-biz_owners_not_ready,_planning_for_NFC_payments

Small-biz owners not ready, planning for NFC payments

November 14, 2014

NEW YORK (11/17/14)--About 82% of business owners do not currently have a point-of-sale terminal or method to accept near-field communication (NFC) contactless payments, such as Apple Pay, according the findings of the most recent Newtek Business Services SB Authority Market Sentiment Survey, a monthly window into the concerns of independent business owners.

Newtek Business Services Inc., The Small Business Authority, is a CUNA Strategic Services alliance provider.

Additionally, 93% of business owners are not planning on upgrading their existing terminals to be able to accept contactless NFC payment options.

"A valuable attribute of our polling process is that its views are real and are entirely independent from our own business philosophies, initiatives and ways of thinking," said Barry Sloane, Newtek president/CEO and chairman.

"Our recent October poll depicts indifference towards contactless mobile payments and the use of contactless/NFC-type communications in the near future," Sloane continued. "This somewhat surprising sentiment and information source tells us that there is a significantly greater need within the payments industry to explain and demonstrate the benefits and significance of mobile and contactless payments to merchants and merchant acquirers.

"Most of our clients still do not understand the new EMV requirements and clearly do not see the importance and value of mobile payments away from traditional swipe or contact payment sources," Sloane said.

Sloane said consumers will ultimately determine the most effective payment method, and merchants will adapt to consumer demands. "In particular, the younger generation, which is the growth market, use their mobile phones for everything, and this future force of consumption will drive the method by which consumers pay," Sloane said.

Newtek/CUNA Strategic Services