CardFlight Small Business Report

October 21, 2020

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Introduction

In this week's report, covering October 12 to 18, 2020, we analyze week-over-week business activity and analyze the change in contact-free ways to pay by business category.

Key takeaways:

  • Deep dive: Growth of contact-free ways to pay in Retail, Services, and Food and Drink
  • Overall sales were up 2%, driven by higher average ticket sales from Retail and Service merchants
  • Card-present and card-not-present transactions were relatively flat (down 0.4%)

About the report

The CardFlight Small Business Report analyzes sales performance and emerging trends among small businesses in the United States.

The report has been featured in and/or cited by The Atlantic, Bloomberg TV, Business Insider, Digital Transactions, PaymentsJournal, PaymentsSource, and others. Sign up below to receive future report notifications right in your inbox.

Learn more about the report and our methodology.

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Week-over-week changes

First, we examine change in week-over-week small business performance by analyzing change in overall sales, number of transactions per business, and more.

Sales at small businesses up 2%

Week-over-week sales at the small businesses in our sample fell by 2 % compared to the week of October 5 to 11, 2020.

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020..


Transaction counts down slightly last week

The transaction count metric represents the total number of transactions processed by the small businesses in our sample. Last week, transaction counts decreased by 0.4%.

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020..


Number of active small businesses flat week-over-week

This metric measures all businesses who processed at least one transaction in the preceding week. The number of active merchants decreased by 0.2% last week.

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020.


The average number of transactions per active merchant decreased by 0.2% last week.

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020..


Card-present payments vs. card-not-present

The payments industry has two broad categories for transactions based on where they occur.

  • Card-present payments are those that are initiated in-person (face-to-face). This includes all instances in which a credit or debit card is physically swiped, inserted, or tapped at a merchant location.
  • Card-not-present payments are those made over the phone or online. This category of payments also includes invoices and those merchants who save cards of their frequent customers on file.

Changing behavior as seen through payment method

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020..


Changing behavior as seen through touch-free ways to pay

The three ways US consumers typically use credit and debit cards for in-person transactions are:

  • Dipping an EMV chip card
  • Tapping a contactless card or smart phone
  • Swiping via magnetic stripe

We continue to see that overall growth in sales made via contactless payment methods are outpacing those made via EMV chip. While payments made via EMV chip are now up nearly 21% over their pre-COVID baseline levels, contactless payment methods are up more than 207%.

To learn more about how COVID is increasing demand for low-contact ways to pay, view the special section of this week's expanded report.


Changes in payment methods for in-person transactions

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020..


Sales by business category

In this section of the CardFlight Small Business Report, we take a closer look at small business performance by business category.

  • Food and Drink establishments: Includes bars and restaurants
  • Services: General contractors, healthcare providers, providers of professional services, and others
  • Retail: Businesses like sporting goods stores, specialty retail, home furnishings, and automotive

Sales at Food and Drink businesses down 2%

Sales at Food and Drink businesses decreased by 1.9% last week. Transaction counts decreased by 1.5% week-over-week.

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020. .


Retail sales up 7%

Sales at the Retail businesses in our sample increased by 6.9% week-over-week. Meanwhile, transaction counts decreased by 4.7%.

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020. .


Sales at Services businesses up 2%

Sales at businesses in the Services category increased by 1.9% last week. Meanwhile, transaction counts decreased by 0.9%.

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020..


Source: Transactions processed by US small businesses with SwipeSimple. Chart represents percentage-point month-over-month change compared to the baseline month of March, 2020.


The rise of touch-free payments

In this section of the report, we examine how the COVID-19 global pandemic is changing how consumers pay small businesses for their goods and services, grouped by business category. 

For more data on touch-free payments, see last week's report. Learn more about the ways merchants accept touch-free payments with SwipeSimple.

Food and Drink

First, we see how contactless transaction volume at businesses in the Food and Drink category has grown since the pre-COVID baseline of March 2–8.

The number of in-person transactions made via contactless tap-to-pay cards and devices is up 162% over the pre-COVID baseline. For comparison, transactions made via EMV chip were up just 42.3% in September (not shown).

Source: Transactions processed by US small businesses with SwipeSimple. Chart represents percentage-point month-over-month change compared to the baseline month of March, 2020.


Retail

Next, we examine how contactless transaction volume at businesses in the Retail category has grown since the pre-COVID baseline of March 2–8.

The number of in-person transactions made via contactless tap-to-pay cards and devices is up 244% over the pre-COVID baseline. For comparison, transactions made via EMV chip were down 1% in September (not shown).

Source: Transactions processed by US small businesses with SwipeSimple. Chart represents percentage-point month-over-month change compared to the baseline month of March, 2020.


Services

Next, we examine how Invoice transaction volume at businesses in the Services category has grown since the pre-COVID baseline of March 2–8.

Transactions made via Invoices are up 104% over the pre-COVID baseline. For comparison, transactions made via EMV chip are down by 4.6% in September (not shown).

Source: Transactions processed by US small businesses with SwipeSimple. Chart represents percentage-point month-over-month change compared to the baseline month of March, 2020.


Month-over-month changes

Next, we take a look at the month-over-month changes to sales, transaction counts, and number of active merchants at US small businesses. This analysis is based on "whole month" comparisons, using March 2020 as the baseline month.

Monthly change in sales

Sales at the small businesses in our sample ended the month of September 5.4% below August.

Source: Transactions processed by US small businesses with SwipeSimple. Chart represents percentage-point month-over-month change compared to the baseline month of March, 2020.


Monthly change in transaction counts

Transaction counts ended the month of August 0.1% below July.

Source: Transactions processed by US small businesses with SwipeSimple. Chart represents percentage-point month-over-month change compared to the baseline month of March, 2020.


Monthly change in active merchants

The number of active small businesses in our sample ended the month of September 1.5% below August.

Source: Transactions processed by US small businesses with SwipeSimple. Chart represents percentage-point month-over-month change compared to the baseline month of March, 2020.



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About the report

The CardFlight Small Business Report is intended to provide insights into ongoing sales performance, trends, predictions, and unique analysis of US small businesses. The report has been featured in The Atlantic, Bloomberg TV, Business Insider, Digital Transactions, PaymentsJournal, PaymentsSource, and others.

Methodology

The report is based on analysis of a representative sample of more than two million transactions processed by more than 65,000 small businesses who use SwipeSimple software (the signature product of CardFlight) to accept credit and debit card payments.

To create this report, we analyzed a representative sample of millions of transactions processed by:

  • in all 50 states 
  • using CardFlight’s SwipeSimple software to accept credit and debit card payments

The SwipeSimple small business owner 

The typical SwipeSimple merchant has one to ten employees and less than five locations or mobile service points. The average active merchant represented in this data set processes approximately $130,000 in credit/debit card payments annually. The merchants are a mix of professional and personal service providers, specialty retail establishments, and food and drink purveyors.