CardFlight Small Business Report

September 9, 2020

Overall sales up 2.8%. Contactless payments now 160% above the pre-COVID baseline.

Introduction

Overall sales at US small businesses were up 2.8% last week. Contactless payments were up for the third week in a row, and are now more than 160% above the pre-COVID baseline.

In last week's report, we predicted sales at US small businesses would decline by about 75% on Monday, September 7 due to the Labor Day holiday. Actual sales were down 52%.

We also expected approximately 50% fewer transactions to take place on Labor Day. Actual transaction counts were down 77.7%.

To find out how Labor Day 2020 affected the week's overall numbers, sign up for email updates to get notified when we publish next week's report.

Key takeaways:

About the report

The CardFlight Small Business Report analyzes sales performance and emerging trends among small businesses in the United States.

The report has been featured in and/or cited by The Atlantic, Bloomberg TV, Business Insider, Digital Transactions, PaymentsJournal, PaymentsSource, and others. Sign up below to receive future report notifications right in your inbox.

Learn more about the report and our methodology.

Never miss a new report

Get new reports sent straight to your inbox as soon as they're published.
Success! You're on the list.
Oops! Something went wrong while submitting the form.

Stay up-to-date

Don't miss information about new products, company announcements, and more. Signup for updates today.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Week-over-week changes

First, we examine change in week-over-week small business performance by analyzing change in overall sales, number of transactions per business, and more.

Sales at small businesses up 2.8% last week

Week-over-week sales at the small businesses in our sample increased by 2.8% last week.

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020.
For complete week-by-week data, see this spreadsheet
.


Transaction counts up nearly 7% last week

The transaction count metric represents the total number of transactions processed by the small businesses in our sample. Last week, transaction counts increased by 6.9%.

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020.
For complete week-by-week data, see this spreadsheet
.


Number of active small businesses up 2.6% last week

This metric measures all businesses who processed at least one transaction in the preceding week. The number of active merchants increased by 2.6% last week.

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020.
For complete week-by-week data, see this spreadsheet
.


The average number of transactions per active merchant increased by 4.2% last week.

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020.
For complete week-by-week data, see this spreadsheet
.


Card-present payments vs. card-not-present

The payments industry has two broad categories for transactions based on where they occur.

  • Card-present payments are those that are initiated in-person (face-to-face). This includes all instances in which a credit or debit card is physically swiped, inserted, or tapped at a merchant location.
  • Card-not-present payments are those made over the phone or online. This category of payments also includes invoices and those merchants who save cards of their frequent customers on file.

Changing behavior as seen through payment method

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020.
For complete week-by-week data, see this spreadsheet
.


Changing behavior as seen through contactless tap to pay

Next, we'll examine how coronavirus/COVID-19 is changing the manner by which consumers pay for their goods in-person.

The three ways US consumers typically use credit and debit cards for in-person transactions are:

  • Dipping an EMV chip card
  • Tapping a contactless card or smart phone
  • Swiping via magnetic stripe

Since magnetic stripe payments are a relatively low proportion of our payment volume, we're focusing on chip cards and contactless tap. We continue to see that overall growth in sales made via contactless payment methods are outpacing those made via EMV chip.

While payments made via EMV chip are now up 16.6% over their pre-COVID baseline levels, contactless payment methods are up more than 160%.


Changes in payment methods for in-person transactions

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020.
For complete week-by-week data, see this spreadsheet
.


Deep dive: Sales by business category

In this section of the CardFlight Small Business Impact Report, we take a closer look at small business performance by business category.

  • Food and Drink establishments: Includes bars and restaurants
  • Services: General contractors, healthcare providers, providers of professional services, and others
  • Retail: Businesses like sporting goods stores, specialty retail, home furnishings, and automotive

Sales at Food and Drink businesses up nearly 15% last week

Sales at Food and Drink businesses increased by 14.9% last week; transaction counts increased by 4.6%.

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020.
For complete week-by-week data, see this spreadsheet
.


Retail sales down 4.7% last week

Sales at the Retail businesses in our sample decreased by 4.7% week-over-week; transaction counts increased by 5.1%.

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020.
For complete week-by-week data, see this spreadsheet
.


Sales at Services businesses up 5% last week

Sales at businesses in the Services category increased by 5% last week; transaction counts increased by 7.3%.

Source: Transactions processed by US small businesses with SwipeSimple. Percentages provided above reflect total change over the preceding eight weeks, compared to the baseline week of March 2–8, 2020.
For complete week-by-week data, see this spreadsheet
.


Month-over-month changes

Next, we take a look at the month-over-month changes to sales, transaction counts, and number of active merchants at US small businesses. This analysis is based on "whole month" comparisons, using March 2020 as the baseline month.

Monthly change in sales

Sales at the small businesses in our sample ended the month of August 3.3% below July.

Source: Transactions processed by US small businesses with SwipeSimple. Chart represents percentage-point month-over-month change compared to the baseline month of March, 2020.


Monthly change in transaction counts

Transaction counts ended the month of August 0.1% below July.

Source: Transactions processed by US small businesses with SwipeSimple. Chart represents percentage-point month-over-month change compared to the baseline month of March, 2020.


Monthly change in active merchants

The number of active small businesses in our sample ended the month of August 1.4% above July.

Source: Transactions processed by US small businesses with SwipeSimple. Chart represents percentage-point month-over-month change compared to the baseline month of March, 2020.


Thanks for reading

Do you have questions, feedback, or press inquiries? Contact us. You may also view past editions of the CardFlight Small Business Impact Report.

Never miss a new report

Get new reports sent straight to your inbox as soon as they're published.
Success! You're on the list.
Oops! Something went wrong while submitting the form.

Stay up-to-date

Don't miss information about new products, company announcements, and more. Signup for updates today.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

About the report

The CardFlight Small Business Report is intended to provide insights into ongoing sales performance, trends, predictions, and unique analysis of US small businesses. The report has been featured in The Atlantic, Bloomberg TV, Business Insider, Digital Transactions, PaymentsJournal, PaymentsSource, and others.

Methodology

The report is based on analysis of a representative sample of more than two million transactions processed by more than 65,000 small businesses who use SwipeSimple software (the signature product of CardFlight) to accept credit and debit card payments.

To create this report, we analyzed a representative sample of millions of transactions processed by:

  • in all 50 states 
  • using CardFlight’s SwipeSimple software to accept credit and debit card payments

The SwipeSimple small business owner 

The typical SwipeSimple merchant has one to ten employees and less than five locations or mobile service points. The average active merchant represented in this data set processes approximately $130,000 in credit/debit card payments annually. The merchants are a mix of professional and personal service providers, specialty retail establishments, and food and drink purveyors.