Bank of America Survey Finds SMB Owners Expect IoT, Digital Payments Growth

America’s small business owners have big expectations for the role of technology in their businesses, according to ETA member Bank of America’s 2018 Small Business Owner Report. The survey, released this week as part of Small Business Week, found that 77 percent of SMB owners see the future of their success dependent on technology.

SMB owners also see their business’ tech-dependent success rooted in emerging payments technology. The survey found that 52 percent of business owners predict that all payments will be digital by 2023, with 1 in 5 forseeing their business accepting cryptocurrency in the same time frame. Almost two thirds of millennials (63 percent) predict that all payments will be digital in five years.

Further, among the 44 percent of entrepreneurs who are using or exploring at least one advanced technology, a significant plurality of 24 percent are using or exploring Internet of Things (IoT) technology. ETA’s Five Payment Trends to Watch in 2018 report predicts that connected smart devices will initiate $150 billion in transactions this year, indicating a growing market for small business owners to capitalize on.

The study also found that 89 percent of SMB owners use their smartphones for business operations, including business management (44 percent), digital banking (41 percent) and digital payments (29 percent). As integrated software solutions, smart and mobile POS devices and omnichannel options continue to expand, reliance smart devices for payments and business management is likely to increase. ETA’s Five Payment Trends to Watch in 2018 report finds that merchants will spend $2.2 billion in 2018, and $2.4 billion in 2019, on POS software alone; analytical tools and loyalty management solutions spending is expected to hit $1.4 billion in 2018.

Access the full report from Bank of America here.