Most small and midsize business (SMB) owners have adopted new banking technology but are experiencing losses due to inflation.

What’s more, 70% of SMB owners integrated new digital tools and strategies for their business in the past year, including online business banking tools, mobile apps and cashless payments, according to a report released this week by $3.2 trillion Bank of America.

This is the 10th iteration of the annual report, which surveyed more than 1,000 business owners employing between two and 99 workers. Supply chain disruptions have trickled down to many businesses, with three out of four respondents saying such disruptions have affected their bottom lines, according to the report.

Furthermore, 88% of respondents said inflation is now having an impact on their business, causing companies to raise prices and reevaluate cash flow and spending. Faced with such challenges, business owners also said they believe new technologies will be “critical” to business growth and risk reduction.

More specifically, the survey revealed:

• 39% of respondents said automating business processes will be important in the coming decade;
• 57% said cybersecurity platforms remain critical; and
• 50% pointed to 5G as important going forward.

Digital transformation in retail continues, with 44% of business owners saying they’re prioritizing digital over in-person sales via brick-and-mortar channels.

Fraud deterring buy now pay later (BNPL)

With much attention in recent months given to BNPL payment products, fraud is making many customers who opt for BNPL once bitten, twice shy.

So finds a survey of more than 2,000 U.S. adults from identity authentication solutions provider Callsign. BNPL options allow customers to spread out payments often for larger-ticket items over time, in many cases at no interest and with soft credit pulls that don’t affect credit scores. Nearly half of those surveyed said they have used BNPL.

But among BNPL customers, 14% have experienced fraud, according to the survey. “As the latest manifestation of account takeover, consumers are at high risk of fraud when using BNPL,” Amir Nooriala, chief commercial officer at Callsign, said in a release.

The survey also found that among BNPL users who have experienced fraud:

• 23% no longer use any BNPL services;
• 18% no longer use the retail website where they purchased goods; and
• 31% said they now worry about buying anything online.

In addition, 45% of survey respondents who used multiple BNPL services use the same email and password for all their accounts.

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