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Kaushalya Somasundaram , Head of Payment Partnerships and Industry Relations , Square UK , explains how businesses need to keep up with customers ’ expectations following the pandemic to keep up with sales both instore and online .

As we start to come out of lockdown , businesses face another wave of change as customers expect a seamless shopping experience both instore and online . To stay competitive in the current fast evolving climate , businesses of all sizes have been prioritising agility and flexibility , and above all else , listening to their customers .

The need for choice

The pandemic prompted people to shop more locally , and also reconsider their methods of payment . Our Cash and the Pandemic 2.0 report found that Britons exhibited a strong preference for cashless payments as a ‘ safer ’ option during the pandemic .

Luckily , SMEs have proven to be resilient in the face of the incredible challenges posed by COVID-19 , adjusting practically overnight to the new consumer and market demands . The share of Square businesses in the UK that went cashless has risen by more than 4x since last year , and more than 50 % are now accepting payments online .

While a move to cashless has been magnified by health and safety concerns , over half of the UK public expressed that they would like cash payment to still be an option in the future . For businesses , this is a key element to consider , as it is likely to impact their revenue streams , with 57 % of respondents saying that having a variety of payment options would increase the likelihood of their return .

Businesses that provide shoppers with a variety of payment and shopping options are those who are likely to reach a widened customer base and engage their audience for longer . Our research found that half the UK public reported that their local businesses were offering a range of different payment methods for them to choose from , again showing the high level of agility SMEs exhibited .

Supporting SMEs

Our research also found that 41 % of respondents had started shopping at independent stores within their communities more frequently since the start of the pandemic . As restrictions begin to lift , 46 % of the UK public said that shopping locally would continue to be a priority for them .

In addition to this , the pandemic provided many small businesses with the opportunity to explore new ways of engaging with their customers . For example , pivoting to online has given small , local businesses the opportunity to reach a much wider customer base . Of all the businesses that are currently taking online payments with Square , 21 % began doing so in March 2020 or later .

Staying agile

This is an exciting time for businesses to delve into previously uncharted territory , reach a wider audience and experiment with new payment options .

The omnichannel customer experience has become an essential element of a successful SME , with the pandemic accelerating its importance for businesses . By offering customers the best of both worlds , striking a perfect balance between the benefits of in-store and online , as well as providing a variety of payment options , small businesses can gain a competitive advantage and ultimately help boost the local economy . �