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Flute has published research showing that 55% of consumers would stop or reconsider shopping with a local business after one bad payment experience. The study also found a gap between how customers react and how small business owners assess the cost of payment problems.
The survey covered 1,000 US consumers and 200 US small business owners. It focused on checkout friction, funding delays and the operational burden of managing payments across multiple systems.
For merchants, the findings point to a disconnect between consumer expectations and business awareness. While 55% of consumers said a poor payment experience would reduce their willingness to return, only 38% of small business owners said their current setup had probably or definitely cost them a sale.
Shoppers also linked payment processes to spending. Some 44% said a faster, smoother checkout would make them spend more at a local business. Upfront pricing mattered to 93%, while 61% said flexible payment options influenced where they chose to shop.
Three pressure points
The data grouped the impact of payment friction into three areas: customer retention, access to cash and time spent on administration. In each case, the findings suggest payments affect both day-to-day trading decisions and back-office work.
On funding, 40% of small business owners said they had needed extra cash in the past year to cover a cost or support growth. More than half, 54%, said they had turned to personal savings or a personal credit card, while 7% said they had sought support from their payment processor.
The survey also highlighted strain on working capital. More than a third of owners said they had delayed payroll, inventory purchases or rent while waiting for funds to arrive.
Administrative work emerged as another source of pressure. The findings show that 52% of small business owners spend at least an hour each week reconciling statements and dealing with disputes, while more than a third use two or more separate systems to manage payments and finances.
That reliance on multiple platforms reflects the fragmented way many smaller firms manage cash flow and reporting. Owners often handle payments, bookkeeping and operations themselves, making delays and manual checks more costly.
Rebrand backdrop
The research follows Aurora Payments' rebrand to Flute. It is targeting what it calls the everyday economy, a segment of growing businesses that, in its view, have often had to choose between expensive processors and tools not designed for their needs.
Flute said the feature most likely to improve profitability or efficiency was faster access to funds. In the survey, 37% of small business owners said instant or same-day funding would make the biggest difference to their business, ahead of the other options tested.
The company is using the report to argue that payment systems are no longer just a back-end issue for merchants. The findings suggest they shape customer loyalty, funding resilience and how much management time is pulled away from running the business.
A brief methodological note accompanied the study. The business survey covered owners and self-employed respondents at companies with 0 to 500 employees, while the consumer poll was conducted by Dynata using a nationally representative sample of US adults from its first-party panel of verified opt-in respondents.
Commenting on the findings, Derek Dean outlined Flute's view of the challenge facing smaller firms.
"The wrong payments provider can quietly hold a business back. The real cost isn't always visible, but it affects every decision owners make. Growing businesses are silently paying the cost of being ignored. What they need are tools that give them control, speed and clarity so they can focus on serving customers and building momentum. That's what Flute is here to provide," said Derek Dean, Chief Executive Officer, Flute.