A recession could shrink spending, restrict cash flow, and decrease lending. Combined, these effects would tighten small and medium-sized businesses’ budgets and potentially close doors, threatening the strategy of payment service providers (PSPs) laser-focused on the segment. Acquirer-processors, banks, and fintechs must tweak strategy now or risk losing share if a recession does, indeed, develop. They can do so by competing on cost, accelerating cash access, and shoring up capital decisioning.

Key Question: How can PSPs adapt to best support SMB clients through recession-induced challenges?

KEY STAT: According to the latest data from the US Census Bureau, the US SMB market comprises 32 million businesses, exceeding $16 trillion in annual revenues. But impending recession could shrink the market—forcing PSPs to emphasize cost-effective offerings so they can compete without sacrificing growth.