A new survey by NMI®, a global leader in embedded payments infrastructure, reveals that 87% of consumers say gifts from small businesses are more thoughtful, while 78% of consumers are willing to pay more to help small businesses thrive.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241121866919/en/
NMI survey: coffee shops, casual takeout restaurants and bakeries top the list of small businesses most likely to win consumers’ hearts this year (Photo: Business Wire)
The survey of 1,000 U.S. adults explores consumer attitudes and shopping patterns, offering actionable insights to help small and medium-sized businesses (SMBs) understand how they can attract and retain customers. The findings come as the holiday shopping season approaches and ahead of American Express® Small Business Saturday, which takes place on November 30 this year.
Black Friday and Cyber Monday are king, but Small Business Saturday gains traction
The survey highlights strong emotional connections associated with supporting small businesses and found that 53% of consumers surveyed feel a sense of belonging or community, 49% feel satisfied, and 40% feel proud. While 49% of consumers plan to shop on Small Business Saturday, this trails the 66% who plan to flock to big box stores for Black Friday (66%) and Cyber Monday (61%) deals, indicating that SMB owners still struggle to convince holiday shoppers to shop small. Coffee shops, casual takeout restaurants and bakeries top the list of small businesses most likely to win consumers’ hearts this year.
Millennials lead the charge in supporting small businesses
Millennials emerged as the most supportive demographic for supporting small business, with 90% agreeing that gifts from local outlets are more thoughtful, 83% willing to pay more to help SMBs, and 81% more likely to shop small during challenging times like economic turbulence or natural disasters.
This tech-savvy group also has higher expectations for convenience. Online ordering was cited as a key factor influencing consumers to shop at larger retailers, with 39% of Millennials and 34% of Gen Zers highlighting it as a deciding factor. Flexible payment options, such as contactless payments and mobile wallets, were a draw for 42% of Gen Zers and 29% of Millennials, compared to 21% of U.S. adults overall.
Local products drive holiday cheer, but outdated checkout experiences emerge as the Grinch
When asked why they might choose a large retailer, service, or hospitality brand over a small business, modern checkout experiences emerged as a significant factor, particularly for younger generations. Online ordering was cited by 32% of U.S. adults as a key draw, increasing to 39% among Millennials and 34% for Gen Z. Similarly, 21% of consumers pointed to flexible payment options as an advantage, with this figure climbing to 42% for Gen Z and 29% for Millennials. These preferences align with the most popular payment methods consumers use when shopping small, including credit/debit cards, cash, and contactless options like Apple Pay or Google Pay.
Peter Galvin, CMO at NMI, said:
“Small businesses employ more than 61.7 million Americans and are the backbone of our economy, driving job creation and fostering vibrant communities. More than that, they bring pride and joy to the communities they serve. As the payment platform of choice for more than 4,000 partners and their merchants, NMI is a long-time small business advocate, which is why we’re proud to support the American Express Shop Small® initiative and Small Business Saturday. Our survey highlights that to survive in today’s challenging economic environment, small businesses must adapt to evolving customer expectations. Secure, fast, and flexible payment options are key to winning customer loyalty and those that embrace omnichannel strategies and modern checkout experiences will be well-positioned for success this holiday season and well into the future.”
Shop Small and Small Business Saturday, now in its 15th year, is a sales holiday and social media movement by American Express designed to bring attention to small, local merchants. This year Amex is aiding small businesses affected by Hurricanes Helen and Milton, by donating $1 to the U.S. Chamber of Commerce Foundation for each eligible Card purchase made at qualifying U.S. small businesses on November 30. To learn more and access resources visit: https://www.americanexpress.com/en-us/benefits/shop-small/
For independent sales organizations (ISOs) and software companies seeking ways to ensure their merchants make the most out of Small Business Saturday, learn how NMI offers everything they need to start taking payments online, in-store, via mobile, however their customers want to pay and talk to our team.
About NMI
NMI is a global leader in embedded payments, powering more than $225+ billion in payment volumes every year. From our industry-leading payment gateway technology to our seamless merchant underwriting, acquiring, onboarding, and management platform, we enable our partners across the entire payments ecosystem. We help our partners deliver frictionless payment solutions to their customers, offering modularity, flexibility, and choice, wherever and however consumers want to pay – online, in-store, in-app, mobile, and unattended. And we’re constantly innovating, empowering ISOs, software vendors, and payment professionals as they embrace the future of fintech. Learn more at www.nmi.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20241121866919/en/