New research undertaken by PayPal reveals that many small businesses are losing out on sales by neglecting to modernise their payment options.

44% of small businesses, many of which are retailers, have never carried out a review of their payment methods despite the advances in more convenient payment options for consumers over the last few years.

Contactless payment, smartphones and digital wallets have grown exponentially in popularity over the last few years, but a significant majority of small business retailers are failing to implement new payment technologies.

Despite mobile shopping growing at nearly four times the rate of overall online spending, the payment giant’s study has found that only 17 percent of retailers have a mobile friendly website and only four percent have a mobile app that takes payments.

Sixty-three percent of consumers were found to have abandoned a purchase online because the retailer did not offer their preferred payment method, 56 per cent also admitted to this in a bricks and mortar store. 

This has been found to put more customers off a purchase than poor customer service, queues at a checkout and delivery charges.

“Businesses that don’t join the 21st century stand to lose out,” PayPal UK small business director Nicola Longfield said.  

“The good news is that much of this technology is designed to make life easier for small businesses, as well as consumers. 

"Integrating a simpler check-out process, where customers don’t have to enter their card and delivery details every time on a tiny screen can help convert more sales."