Irish businesses claim to see a move to more card transactions—BOIPA survey

Confidence and concerns

Approximately a quarter of Irish businesses (26%) believe there will be no change to the Irish economic outlook this year. On the whole, businesses mostly hold a positive economic outlook with 43% believing the economy will grow—with 8% believing there will be significant growth.

This year’s concerns mirror same issues highlighted in 2023’s survey

There was no change to the top two concerns impacting businesses in this year’s survey, with business costs (83%) and the cost of living crisis (77%) highlighted as the main issues by all sectors again this year.

Staffing shortages (30%) and high interest rates (25%) were also in the mix as key concerns, with cashflow making up the top 5 key issues for businesses. Almost 8 years after the UK voted to leave the European Union, Brexit remains a concern for some merchants with 17% choosing it as a potential business issue.

Key challenges - Top 10 concerns and how they rank compared to 2023

Business running costs: 83% (+1%)
Cost of living crisis: 78% (+3%)
Staffing shortages: 30% (+2%)
High interest rates: 25% (+1%)
Cashflow: 20% (N/A - new survey option)
Supply chain issues: 19% (-11%)
Profitability: 17% (-1%)
Brexit: 17% (-3%)
Marketing my business: 12% (N/A new survey  option)
International conflict (11%) (N/A new survey option)

Sector-specific discrepancies

For retail, supply chain issues featured higher up the list at 30% and Brexit concerns were 10% higher than the national average at 27%. Over 4 in 10 merchants operating in the food and drink industry highlighted staffing shortages as having the potential to impact their business negatively. The accommodation sector had similar concerns, with 35% worried about the availability of staff. 

Concerns over running costs ran highest for businesses in the entertainment and leisure sector, with 9 in 10 of these businesses choosing it as a key challenge in the months ahead.

Strong merchant appetite for digital payment options

BOIPA Country Manager, Barry Gray, noted the role digital payments must play in supporting merchants to meet consumers' increased familiarity with card payment usage.

“Irish consumers’ transition to making more digital payments is continuing. And, we’re seeing businesses respond to this reality, with strong merchant interest for up-and-coming new digital payment solutions in this year’s survey. So, there’s certainly a hunger there for businesses to explore the full potential of digital payments solutions.”

This appetite for digital payments couldn’t be more timely, given the challenges highlighted in the survey. Gray also makes the point that more value and efficiencies lay ahead for businesses as digital payment solutions continue to evolve as a business supporting tool.

“The value coming from accepting card payments isn’t just at the point of sale anymore. Digital payments’ ability to deliver operational efficiencies is gathering pace. From reducing bank runs and delivering settled funds to business accounts the next working day to streamlining busy workplace environments and supporting transaction insights, businesses are getting more benefits from card payments beyond frictionless transaction experiences.

“We’re delighted that this year’s results reflected positively on us as a payment provider, with the majority of businesses surveyed satisfied with the service and support we provide, and ready to renew their contract with us. We’re well placed to deliver for our customers as the digital payments landscape continues to evolve.”

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*We issued our Customer Sentiment and Business Insights survey to our customer base in March, receiving 2,224 responses.