Industry News

24/09/2009 - Credit card companies are starting to express renewed confidence in small businesses, as they have resumed their SME-targeted marketing efforts, according to a recent study.

The survey, released this week by direct marketing intelligence firm Mintel Comperemedia, found that the volume of credit card offers through direct mail is no longer in decline - mailing levels were flat for the year so far, in comparison to the 82 percent decline seen in 2008.

"After scaling back significantly in 2008, card issuers are starting to look at small businesses again," said Andrew Davidson, senior vice president of Mintel Comperemedia. "Small businesses have the ability to create jobs and drive economic growth, but after being starved of credit, they need all the help they can get. By focusing on small businesses, credit card issuers are contributing to recovery."

The latest development in this trend is the release this week of four small business cards by JP Morgan Chase, which has become the leader for small business credit cards, Mintel reported.

This renewed confidence in small businesses indicates that SMEs may be returning to growth levels - a trend that will only increase with the infusion of new credit. Therefore, it has become even more important for businesses in both the business-to-business and business-to-consumer segments to accept credit cards and other payment cards, to ensure that they receive the maximum amount of business.