Small Business Debit: Hiding in Plain Sight



Small business debit usage is strong (but could be stronger).

Data from Mercator Advisory Group’s 2016 small business survey provides metrics on this critical method of payment.

Author: Ken Paterson
Published on: November 29, 2016

Nearly half of small businesses use business debit, creating both a strong user base and an opportunity to grow for debit issuers. However, use of personal demand deposit accounts (DDAs) and debit products persists, even among larger small businesses. Converting additional businesses to debit may be harder than it should be.

Mercator Advisory Group’s latest research note, Small Business Debit: Hiding in Plain Sight, examines the penetration of business debit cards among small businesses in the United States and explores the continued use of personal demand deposit accounts and debit cards among many firms. In addition, the roles of online checking account access and bill-payment services are explored as key small business payment services.

“Small business debit, credit, and charge cards are widely used payment products that help small businesses manage their spending and separate it from the business owner’s household accounts. This is a critical best practice for financial management. The leap to business cards, separate from the owner’s personal cards, is one which business owners may overlook and which debit issuers should address,” comments Ken Paterson, Director, Vice President of Research Operations at Mercator Advisory Group Group and author of the research note.

This report has 8 pages and 3 exhibits.


Highlights of the research note include:

  •  Use of business and personal debit and credit cards 
  •  Use of business and personal checks 
  •  Online and mobile banking services used, as well as online bill-pay 
  •  Preference for online banking bill-pay versus biller websites 
  •  Marketing implications for business debit issuers 



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