Business news

SMEs face tough decisions on which subscription services to keep as they prepare for cost of living bite

Posted By:
Barclays Bank Plc

29th Jul 2022

  • More than half (55 per cent)* of businesses that subscribe to a service to help manage their business say that they would be lost without them**
  • On average these businesses spend £183 a month on their subscriptions
  • However, nearly half (49 per cent) say rising costs are forcing them to consider reducing the number of services they subscribe to
  • Barclaycard Payments is launching the Smartpay Touch payment terminal, providing all-in-one access to payments with a range of business management software included***

New research from Barclaycard Payments – which processes £1 in every £3 spent on credit and debit cards in the UK – has found that cost of living increases are set to impact B2B subscriptions as nearly half (49 per cent)* are considering reducing the number of services they subscribe to**, as they tackle rising costs.

As subscription services have grown in popularity amongst consumers, so too have they among businesses. Half (49 per cent) of UK SMEs say they currently use some sort of subscription service that helps them to run their business, spending on average £183 per month.

Four in five (82 per cent) say that subscription services save their business time by delivering products and services they need regularly, without having to place repeat orders. A similar number (84 per cent) say subscription services give them a feeling of security because they know things that are important to their business are taken care of.

Despite this, nearly half (49 per cent) report that their business is considering reducing the number of services they subscribe to. Four in ten (38 per cent) are actively looking to decrease the number of subscriptions they use, with the main reason being to reduce the running costs of business (39 per cent). Three quarters (76 per cent) of SMEs with a subscription say that such services can help their business to manage finances at a time of rising costs.

Harshna Cayley, Head of Online Payments at Barclaycard Payments, said: “The battle for subscribers is likely to get even tougher in the coming months as many businesses look to cut costs, and become more selective about what they pay for going forward.

“Many businesses told us that they want to see the services they subscribe to work together more seamlessly. That’s why we’re launching Smartpay Touch, with an all-in-one cost, making it easier than ever for businesses to access the data they need to help them to thrive.

“We’re also offering small businesses that bank with us or have Barclaycard business product a free subscription to FreshBooks accounting software, to help them manage their finances.”

For more information about the Barclaycard Smartpay Touch all-in-one point-of-sale solution and the benefits it can add to businesses, click here.