From: Professional Electrician & Installer
Findings from a recent survey into consumer attitudes to payments reveal that many self-employed tradespeople may be losing potential income by not being able to accept card payments.
However, there is competitive advantage to be gained as the survey shows that businesses adopting new card payment technology often attract more customers than those only accepting cash. In the last year, one-in-five UK consumers has abandoned a purchase due to the trades person not accepting card payments or because they did not have enough cash, over half of consumers (54%) finding this lack of flexibility inconvenient.
The implications are far reaching:
- 72% of consumers are left with a negative impression of a business that fails to accept cards
- 28% of customers may also see this lack of service as poor customer service
- 19% see lack of card payment options as being unprofessional
- 18% even perceiving the business as unsuccessful or struggling
- 87% state that they spend more money when paying by card as they purchase additional services or products, demonstrating the potential benefits on offer for those mobile workers that adopt the new service
Tradespeople have the potential to gain new customers by accepting card payments on the move. 38% of people saying that would prefer a tradesman (38%, an electrician 35% and a plumber 33%) if they accept card payments over one that doesn’t, even if the job quote, materials and service quality are the same.
The survey of 5176 people was conducted via online interviews with UK consumers (18+ year olds) during April 2013 for WorldPay.
As a consequence WorldPay has launched ‘WorldPay Zinc’ which allows tradesmen to use a mobile chip & pin keypad, costing £59.99, to take card payments on-site. Offering quick transfer of funds (usually 4 working days), this service offers a pay-as-you-go system of 2.75% per transaction.
This amounts to the tradesman having to pay £2.75 on every £100 pounds that is put through the card reader, this may seem to be a lot, but bear in mind some retail outlets pay 5% or more.
- Mark Jenkins
Mark Jenkins is the Electrical Course Development Manager at Access Training. If you would like to learn more about electrical work and maintenance, you might want to consider one of the many electrical training courses we offer. These are available for both DIY enthusiasts AND people looking to gain the vital qualifications needed to make the career change to become an electrician. To find out more give us a call on 0800 345 7492.