Research and analysis
Understanding the use of cash by small and mid-size businesses
This research explored small and mid-size businesses’ behaviour around payment transactions, including barriers to adopting digital payments.
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This research was commissioned to provide up to date robust evidence on small and mid-size businesses’ behaviour regarding payment transactions, including how these have been affected by coronavirus (COVID-19). The core objectives of this research were to:
- quantify the costs of cash and digital payment transactions for small businesses, including hidden costs relating to administration, storage and processing
- identify the barriers impeding businesses and individuals from adopting digital payment systems
- develop a better understanding of the behavioural drivers of cash-based tax evasion and their impact on social norms
A mixed-method approach was taken for this research, consisting of a quantitative survey of 1,227 small businesses and 643 mid-size businesses undertaken between October and November 2020, followed by 29 in-depth qualitative interviews in November and December 2020.