45% of SMBs Want to Reduce Cash Use

Small businesses that rely heavily on cash could offer banks a receptive audience for business credit cards, provided those cards solve everyday problems with costs and cash flow.

That’s the opportunity identified in “Ready for Change: Why Nearly Half of SMBs Want to Ditch Cash and Checks,” a February 2026 PYMNTS Intelligence report produced in collaboration with Mastercard.

Based on a December survey of 412 U.S. small and medium-sized business (SMB) leaders, the report finds that 45% are highly interested in reducing their reliance on cash. Yet business card use varies sharply. Among firms with annual revenue of at least $1 million, 84% use one, compared with 37% of businesses earning $150,000 or less. That 47-percentage-point gap gives providers a reason to examine how they serve smaller companies.

• Make the economics easy to understand. Costs and fees associated with cards or digital technology are the most commonly cited barrier to reducing cash use, affecting 25.3% of SMBs.

Another 18.8% cite supplier surcharges for card payments. Providers can address those concerns with clear pricing and practical examples of what switching would cost. Owners, in turn, can compare those expenses with the time they spend handling cash and recording payments. Interest already exists: Among businesses with high cash reliance, 55% are very or extremely interested in reducing it. The task is to show how a different payment method fits their operations.

• Build around payment timing. Nearly 46% of SMBs would pay for the ability to adjust payment windows based on when they have money. About 40% would pay to split purchases into installments.

Those findings support card products that help owners coordinate supplier payments with incoming revenue. A flexible payment schedule can work like a bridge between a supplier’s deadline and a customer’s payment. Issuers should explain repayment terms clearly, while business owners should assess whether the added flexibility justifies the cost.

• Keep a person within reach. Among businesses with high cash reliance, 14.3% prefer a digital application they complete themselves, compared with 41% of those that don’t use cash. Providers can offer live help during applications and make it easy to reach someone when problems arise. For smaller firms, guidance through requirements can make a new financial product easier to evaluate and use.

The report also finds that 63.1% of SMBs consider credit cards the most suitable payment method for disputing a transaction and getting money back. Another 51.3% favor cards for paying suppliers quickly. Meanwhile, 46% would pay for access to digital tools. Together, those findings suggest a practical starting point for banks and FinTechs: Demonstrate how a card helps owners protect payments, manage spending and complete daily tasks with less effort.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.