BOSTON — Small- and medium-sized business owners increasingly want digital tools when applying for and managing business credit cards, but many still prefer access to human support when questions arise, according to a new report from PYMNTS Intelligence.
The report, “Ready for Change: Why Nearly Half of SMBs Want to Ditch Cash and Checks,” produced in collaboration with Mastercard, surveyed 412 U.S. small-business owners, founders and executives and found that preferences for customer service channels vary significantly based on age, company characteristics and reliance on cash.
Self-Service Leads the Way
According to the report, the most popular method for applying for a business credit card is a self-service digital application, cited by 22.8% of respondents. However, business owners also showed a strong preference for human interaction, with 17.8% favoring live chat with a customer service representative and 17.6% preferring assistance over the phone.
The findings suggest many business owners value the speed and convenience of digital tools but still want access to personalized support when needed.
Preferences Vary by Demographic
PYMNTS Intelligence found notable differences among generations and business types. Among the findings:
- Not a single Generation Z business owner surveyed selected a self-service digital application as a preferred channel. Instead, 32.7% of Gen Z respondents said email support was their top choice, compared with an overall survey average of 6.9%.
- Businesses that reported no reliance on cash were far more likely to favor self-service applications, with 41% selecting that option. Just 7.2% of those respondents preferred assistance from a phone representative.
- By contrast, cash-reliant businesses were more likely to seek human interaction, with 17% saying they preferred speaking with a representative by phone.
- Baby Boomer business owners also showed a strong preference for digital applications, with 31.1% selecting self-service tools. At the same time, 13.3% expressed interest in video-call support, a channel that received no support among Generation Z respondents.
Challenges for Card Issuers
According to the report, the findings present a challenge for card issuers seeking to encourage businesses to move away from cash and checks.
The businesses that could benefit most from digital payment tools — including smaller, rural and cash-dependent firms — are also the most likely to seek human guidance during the adoption process.
PYMNTS Intelligence said institutions that rely exclusively on digital onboarding may risk slowing adoption among those businesses if customers cannot easily access assistance when needed.
The report suggests a hybrid approach may be the most effective strategy, combining streamlined digital applications with readily available human support during key moments such as account opening and problem resolution.
What Findings Suggest
The findings also point to an opportunity for issuers to better tailor service channels to younger business owners. While Gen Z entrepreneurs generally prefer digital interactions, the survey found they favor communication methods such as email over purely self-service platforms.
PYMNTS Intelligence concluded that financial institutions seeking to grow their business card portfolios should focus on providing both modern digital capabilities and accessible human support, rather than viewing the two approaches as mutually exclusive.
The full report can be found here.
