Small- and medium-sized businesses (SMEs) are under growing pressure to match the convenience offered by larger retailers, with nearly eight in ten (79%) saying their customers expect them to offer more than debit payments at checkout.
A further 43% of SMEs also said they are concerned about competing with larger retailers as consumer expectations continue to grow. Smaller businesses are now looking for new ways to drive sales, and win customers.
The findings, commissioned by payments network Affirm, come as new Buy Now, Pay Later (BNPL) rules take effect in the UK, creating an opportunity to improve access to responsible payment options for smaller businesses.
Almost nine in ten (88%) SMEs said that offering flexible payment options like BNPL would drive business growth, while 85% said they have a positive impact on customer experience.
This untapped customer demand is potentially a significant driver of business growth, with SMEs reporting improved conversion rates (85%), order value (84%), and repeat purchases (85%) as a result of offering flexible payments.
Despite recognising these benefits, many SMEs say offering flexible payments remains unnecessarily difficult. More than half (51%) are concerned about the cost of regulation and compliance.
SMEs also want flexible payments to be fair and transparent for their customers. More than three quarters (77%) say it is important that they can offer a transparent, customer-friendly BNPL option that doesn’t rely on late fees or hidden penalties.
“Small businesses are being asked to meet the same customer expectations as the biggest retailers, often with far fewer resources,”
commented Ruth Spratt, UK Country Manager at Affirm.
“Flexible payments can help level the playing field by improving conversion, increasing order value and encouraging repeat purchases.”
Unlike other payment providers, Affirm enables customers to spread the cost of their purchases over time, interest-bearing or interest-free, with no late fees or hidden charges. Over half a million merchants across the globe partner with Affirm to offer the flexible payment options shoppers increasingly expect.
Methodology
The research was conducted by Censuswide, among a sample of 500 UK small and medium business owners / senior decision-makers (responsibility for payments, sales or ecommerce). The data was collected between 29.06.2026 – 06.07.2026. Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge.
