63% of SMBs See Cards as Their Best Refund Protection

Why It Matters

The findings highlight a sizable market opportunity for banks and payment providers to tailor card solutions that address cash‑flow control and dispute protection, accelerating the digital transition of cash‑heavy SMBs.

Key Takeaways

• 45% of SMBs eager to cut cash reliance
• 68% of Gen Z owners want less cash despite heavy usage
• 46% would pay for cards with digital cash‑flow tools
• 63% view cards as best way to dispute payments
• Only 22% of Gen Z firms currently have business cards

Pulse Analysis

Cash remains entrenched in many small businesses because it aligns with long‑standing bookkeeping, supplier relationships, and immediate liquidity needs. Yet the PYMNTS‑Mastercard survey shows a growing willingness to abandon cash, especially among sectors that grapple with the operational headaches of handling bills and change. This shift is driven less by technology enthusiasm and more by the desire for tools that replicate cash’s simplicity while adding visibility and control. For SMBs, the transition promises smoother cash‑flow management, reduced theft risk, and streamlined reconciliation.

Business credit cards are emerging as the preferred bridge between cash and fully digital payments. The report reveals that 46% of SMBs would pay for a card offering digital tools such as adjustable payment windows, and 63% consider cards the most reliable method for disputing transactions and securing refunds. Gen Z entrepreneurs, despite making over half of their payments in cash, express the strongest desire to reduce cash reliance, indicating a generational push for smarter, card‑centric solutions. Cards that deliver real‑time expense tracking, automated reconciliation, and flexible settlement terms resonate more than traditional reward‑focused offerings.

For banks, issuers, and fintechs, the data signals a clear product‑development mandate: combine fast, self‑service digital onboarding with accessible human support for cash‑heavy, rural, and micro‑businesses. A blended model that preserves cash’s immediacy—through instant authorization and predictable acceptance—while layering security, dispute protection, and cash‑flow analytics can unlock untapped adoption. As more SMBs adopt such hybrid card solutions, the industry can expect accelerated digitization, higher transaction volumes, and stronger data insights that fuel further innovation across the small‑business payments ecosystem.