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UK-based SMEs up 60% in daily transactions in sign of recovery, Barclaycard study

Friday 21 August 2020 09:41 CET | News

Barclaycard has released its Payments’ quarterly SME Barometer, revealing that small and medium businesses exceeded their revenue predictions for Q2 2020. 

SMEs reported, on average, a 14% decline in revenue in Q2 compared to Q1, less severe than the 28% drop predicted. Stronger-than-expected Q2 performance has led to a boost in optimism, with index scores jumping from 79 out of a possible 200 points at the start of Q2, to 95 points at the start of Q3. This is also reflected in business outlook – 36% of SMEs report a positive outlook for their own business this quarter, up from 21% in Q2. Across all sectors, SMEs predict a 5% increase in revenue for Q3 compared to Q2, which grows to 14% over the next 12 months, according to the official press release. 

Sectors that rely on consumer card payments, such as hospitality and leisure, were hit particularly hard in Q2, and many were not able to re-open safely until the start of Q3. However, these sectors appear to be recovering well – Barclaycard SME transaction data for the first half of Q3 has shown consistent week-on-week growth, and the average daily transaction value has risen by 60% compared to the daily average for Q2. Still, card transactions for the first half of Q3 remain 13% behind the same point in 2019, indicating card-taking SMEs have a way to go to match their pre-pandemic performance.

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Keywords: UK, United Kingdom, SMEs, daily transactions, Barclaycard, pandemic, recovery, small and medium businesses, revenue, optimism, consumer cards, card payments, hospitality industry, transactions, card transactions, card-taking SMEs
Categories: Payments & Commerce | Cards
Countries: United Kingdom
This article is part of category

Payments & Commerce