New data from the Small Business Payments Alliance once again reaffirms the value of credit cards for small businesses. According to consumer surveys and research gathered over the first quarter of 2025, small businesses rely on credit cards to drive sales and expand growth. Small businesses also rely on electronic payments to protect against fraud and unlock e-commerce opportunities. Consumers value the availability of electronic payment options. Most notably, credit cards are becoming increasingly important for younger generations. Credit cards are an essential part of doing business in a modern payment ecosystem and provide key rewards to customers.
Consumers prefer using electronic payments when making purchases at small businesses. As consumer preferences continue to shift towards using cards and digital payment apps over cash, small businesses that accept these payments offer a better customer experience and generate higher sales, allowing them to better compete with larger firms.
Electronic payments reduce fraud costs for small businesses. Smaller companies are more vulnerable to check fraud than larger businesses, highlighting the importance of accepting electronic payments to reduce fraud costs that can otherwise put a major dent in profitability.
Electronic payments provide new sales channels to small businesses. The rapid growth in e-commerce over the last five years highlights the shift in consumer preferences to online purchases and is heavily dependent on electronic payments. By accepting card payments, small businesses can engage in the e-commerce market and its expanded revenue potential.
Younger generations are driving the growth in credit card spending. Credit card spending is on the rise, largely because of increased utilization by Millennials and Gen Z. Younger generations use their credit cards differently than older generations: Gen Z focuses more on shopping and dining, while Baby Boomers focus more on fuel and lodging.
Gen Z consumers care more about rewards than older generations, especially when it comes to travel. More than 60% of Millennial and Gen Z consumers use the credit cards in a manner that maximizes travel rewards, compared to just 36% of Gen X and Baby Boomers.
Once again, the latest research affirms the value of credit cards for small businesses. Small businesses rely on credit cards to drive sales, expand growth through e-commerce, and protect against fraud. Consumers enjoy a better customer experience with electronic payments, as credit cards becoming increasingly important for younger generations. Small business owners and consumers continue to rely on the security and reliability of credit cards.
