SMEs face tough calls about subscription services as cost of living bites

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New findings from Barclaycard Payments, which processes £1 in every £3 spent on credit and debit cards in the UK, suggest that the increases are set to affect business subscriptions and half of SMEs are reviewing what they are receiving. Equally as popular now among consumers as companies, 49 percent of UK SMEs say they currently use some sort of subscription service that helps them to run their business. Spending on average is £183 per month.

Four in five (82 percent) say these save them time by delivering products and services they need regularly, without having to place repeat orders.

A similar number (84 percent) say subscriptions give them a sense of security because they know things that are important to their business are taken care of.

Despite this, nearly half report they are considering reducing the number of services they receive.

Some 38 percent are actively looking to decrease the number they use, with the main reason being to reduce the running costs.

Three quarters (76 percent) of SMEs with a subscription however say that such services can help them manage finances at a time of rising costs.

“The battle for subscribers is likely to get even tougher in the coming months as many businesses look to cut costs, and become more selective about what they pay for going forward,” warns Harshna Cayley, Barclaycard Payments’ online head.

“Many businesses told us that they want to see the services they subscribe to work together more seamlessly.”

In response to this Barclaycard is launching Smartpay Touch, which comes with an all-in-one cost and a speedier access to data.

“We’re also offering small businesses, ones that bank with us or have a Barclaycard, a free subscription to FreshBooks accounting software to help them manage their finances,” explains Cayley. 

For more information about the Barclaycard Smartpay Touch all-in-one point-of-sale solution and its benefits, visit https://www.barclaycard.co.uk/business/accepting-payments/card-readers/point-of-sale-system

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